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Waters 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 Waters to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Waters? Defining Valuable in VRIO
A resource or capability is considered valuable for Waters , if it allows the
Waters to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Waters to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Waters.
What are Rare Resources for Waters? Defining Rare in VRIO
In an industry that Waters operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Waters require rare resources to compete in the industry. If Waters don’t have rare resources that are required to succeed in the industry then Waters won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Waters competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Waters? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Waters 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. Waters 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 Waters
What is a Organization for Waters? Defining Organization in VRIO
Even if the Waters 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 Waters 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 |
---|---|---|---|---|---|
Alignment of Activities with Waters Corporate Strategy | Yes | No | Each of the firm has its own strategy | Yes, company has organizational skills to extract the maximum out of it. | Still lots of potential to build on it |
Opportunities for Brand Extensions for Waters 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 |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Waters 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 Waters | Waters is leveraging the customer loyalty to good effect | Provide Waters medium term competitive advantage |
Customer Community of Waters | Yes, as customers are co-creating products | Yes, the Waters has able to build a special relationship with its customers | It is very difficult for Waters competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Waters customers community ecosystem | Providing Strong Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Waters strategy is built on successful innovation and localization of products | Yes, as talent is critical to firm's growth | Difficult to imitate for the current competitors of Waters | To a large extent yes | Providing Strong Competitive Advantage |
Opportunities in the E-Commerce Space for Waters - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Waters can exploit the emerging opportunities | No, most of the competitors are investing in IT to enter the space | The AI and inhouse analytics can be difficult to imitate | It is just the start for the organization | In the long run it can provide sustainable competitive advantage |
Access to Cheap Capital for Waters | Yes, as a leading player in the industry and current macro economic conditions, Waters has access to cheap capital | No | Can be imitated by the competitors of Waters | Not been totally exploited | Not significant in creating competitive advantage |
Track Record of Leadership Team at Waters | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – Waters retail strategy | Yes, Waters has strong relationship with retailers and wholesalers | Yes, Waters has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Sales Force and Channel Management of Waters | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Waters sustainable competitive advantage. Potential is certainly there. |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Waters to thwart competition | Yes, IPR and other rights are rare and competition of Waters 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 |
Supply Chain Network Flexibility of Waters | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Waters organizational structure and capabilities | Keeps the business running |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Waters operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Waters is successful at it | Providing Strong Competitive Advantage |
Waters 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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