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Verisk Analytics VRIO / VRIN Analysis | Assignment Help
What is VRIO / VRIN Analysis ?
VRIO stands for – Value of the resource, Rareness of the resource, Imitation Risk, and Organizational Competence.
VRIO is a resource focused strategic analysis tool.
To build a sustainable competitive advantage the resources that –casename— needs to be valuable, rare, and difficult to imitate. Secondly the –casename— needs to possess capabilities, organizational structure, and culture to optimize the available resources usage. VRIO analysis can help organizations such as Verisk Analytics to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Verisk Analytics? Defining Valuable in VRIO
A resource or capability is considered valuable for Verisk Analytics , if it allows the
Verisk Analytics to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Verisk Analytics to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Verisk Analytics.
What are Rare Resources for Verisk Analytics? Defining Rare in VRIO
In an industry that Verisk Analytics operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Verisk Analytics require rare resources to compete in the industry. If Verisk Analytics don’t have rare resources that are required to succeed in the industry then Verisk Analytics won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Verisk Analytics competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Verisk Analytics? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Verisk Analytics for certain period of time as all the competitors are going to try to imitate or replicate that resource. A sustained competitive advantage emerges, if the resource is difficult to imitate by the competitors. Verisk Analytics can create inmitability by innovating on the product side, reducing pain points on service delivery, and having an effective post sales servicing strategy.
Check out the SWOT analysis of Verisk Analytics
What is a Organization for Verisk Analytics? Defining Organization in VRIO
Even if the Verisk Analytics has all the valuable resources that are both rare and difficult to imitate, it won’t automatically result into a sustainable competitive advantage. The key to build the sustainable competitive advantage is to have organizational capabilities, expertise, and structure to exploit the resources. If Verisk Analytics is not organized based on its strengths then it won’t able to exploit all the resources that it possesses.
Resources | Value | Rare | Imitation | Organization | Competitive Advantage |
---|---|---|---|---|---|
Global and Local Presence of Verisk Analytics | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Verisk Analytics but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Opportunities for Brand Extensions for Verisk Analytics products | Yes, new niches are emerging in the market | No, as most of the competitors are also targeting those niches | Yes can be imitated by the competitors | Brand extensions will require higher marketing budget | Temporary Competitive Advantage |
Supply Chain Network Flexibility of Verisk Analytics | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Verisk Analytics organizational structure and capabilities | Keeps the business running |
Verisk Analytics Customer Network and Loyalty | Yes, 23% of the customers contribute to more than 84% of the sales revenue | Yes, firm has invested to build a strong customer loyalty | Has been tried by competitors but none of them are as successful as Verisk Analytics | Verisk Analytics is leveraging the customer loyalty to good effect | Provide Verisk Analytics medium term competitive advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Verisk Analytics in delivering lower costs | No | Can be imitated by competitors of Verisk Analytics but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Brand awareness of Verisk Analytics products and services | Yes, the brand awareness of Verisk Analytics products are high | Yes, Verisk Analytics has one of the leading brand in the industry | No | Verisk Analytics has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of Verisk Analytics | Yes, it is valuable in the industry given the various segmentations & consumer preferences. | Most of the competitors are trying to enter the lucrative segments | Can be imitated by the competitors | The firm has used it to good effect, details can be found in case exhibit | Provide short term competitive advantage but requires constant innovation to sustain |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Verisk Analytics to thwart competition | Yes, IPR and other rights are rare and competition of Verisk Analytics will find it extremely difficult to copy | Risk of imitation is low but given the margins in the industry disruption chances are high | So far the firm has not utilized the full extent of its IPR & other properties | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – Verisk Analytics retail strategy | Yes, Verisk Analytics has strong relationship with retailers and wholesalers | Yes, Verisk Analytics has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Pricing Strategies of Verisk Analytics | Yes, Verisk Analytics has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Verisk Analytics with a Temporary Competitive Advantage |
Customer Community of Verisk Analytics | Yes, as customers are co-creating products | Yes, the Verisk Analytics has able to build a special relationship with its customers | It is very difficult for Verisk Analytics competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Verisk Analytics customers community ecosystem | Providing Strong Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Verisk Analytics dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Track Record of Leadership Team at Verisk Analytics | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Verisk Analytics SWOT Analysis, SWOT Matrix, Weighted SWOT Case Study Solution & Analysis
Books and References
Ahir Gopaldas and Anton Siebert (2022 July August) "What You’re Getting Wrong About Customer Journeys",
Harvard Business Review , 92
Linda A. Hill, Emily Tedards, and Taran Swan (2021) "Drive Innovation with Better Decision-Making", Harvard Business Review 86
Dyer, J. H., & Hatch, N. (2004). Using Supplier Networks to Learn Faster. Sloan Management Review, 45(3), 57–63
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99–120
Dyer, J. H., Kale, P., & Singh, H. (2004, July–August). When to ally and when to acquire. Harvard Business Review, 109–115
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