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Twenty-First Century Fox 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 Twenty-First Century Fox to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Twenty-First Century Fox? Defining Valuable in VRIO
A resource or capability is considered valuable for Twenty-First Century Fox , if it allows the
Twenty-First Century Fox to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Twenty-First Century Fox to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Twenty-First Century Fox.
What are Rare Resources for Twenty-First Century Fox? Defining Rare in VRIO
In an industry that Twenty-First Century Fox operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Twenty-First Century Fox require rare resources to compete in the industry. If Twenty-First Century Fox don’t have rare resources that are required to succeed in the industry then Twenty-First Century Fox won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Twenty-First Century Fox competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Twenty-First Century Fox? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Twenty-First Century Fox 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. Twenty-First Century Fox 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 Twenty-First Century Fox
What is a Organization for Twenty-First Century Fox? Defining Organization in VRIO
Even if the Twenty-First Century Fox 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 Twenty-First Century Fox 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 |
---|---|---|---|---|---|
Opportunities in the E-Commerce Space for Twenty-First Century Fox - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Twenty-First Century Fox 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 |
Opportunities in the Adjacent Industries that Twenty-First Century Fox can exploit & New Resources Required to Enter those Industries | Can be valuable as they will create new revenue streams | No | Can be imitated by competitors | All the capabilities of the organization are not fully utilized yet | Has potential |
Product Portfolio and Synergy among Various Product Lines of Twenty-First Century Fox | 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 |
Access to Cheap Capital for Twenty-First Century Fox | Yes, as a leading player in the industry and current macro economic conditions, Twenty-First Century Fox has access to cheap capital | No | Can be imitated by the competitors of Twenty-First Century Fox | Not been totally exploited | Not significant in creating competitive advantage |
Sales Force and Channel Management of Twenty-First Century Fox | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Twenty-First Century Fox sustainable competitive advantage. Potential is certainly there. |
Marketing Expertise within Twenty-First Century Fox | Yes, firms are competing based on differentiation in the industry | No, as most of the competitors also have good marketing departments and expertise | Pricing strategies of Twenty-First Century Fox are often matched by competitors | Yes, Twenty-First Century Fox is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Track Record of Leadership Team at Twenty-First Century Fox | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Brand awareness of Twenty-First Century Fox products and services | Yes, the brand awareness of Twenty-First Century Fox products are high | Yes, Twenty-First Century Fox has one of the leading brand in the industry | No | Twenty-First Century Fox has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Twenty-First Century Fox operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Twenty-First Century Fox is successful at it | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – Twenty-First Century Fox retail strategy | Yes, Twenty-First Century Fox has strong relationship with retailers and wholesalers | Yes, Twenty-First Century Fox has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Opportunities for Brand Extensions for Twenty-First Century Fox 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 Twenty-First Century Fox | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Twenty-First Century Fox organizational structure and capabilities | Keeps the business running |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Twenty-First Century Fox to thwart competition | Yes, IPR and other rights are rare and competition of Twenty-First Century Fox 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 |
Alignment of Activities with Twenty-First Century Fox 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 |
Twenty-First Century Fox 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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