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QEP Resources 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 QEP Resources to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for QEP Resources? Defining Valuable in VRIO
A resource or capability is considered valuable for QEP Resources , if it allows the
QEP Resources to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow QEP Resources to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for QEP Resources.
What are Rare Resources for QEP Resources? Defining Rare in VRIO
In an industry that QEP Resources operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. QEP Resources require rare resources to compete in the industry. If QEP Resources don’t have rare resources that are required to succeed in the industry then QEP Resources won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide QEP Resources competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for QEP Resources? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to QEP Resources 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. QEP Resources 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 QEP Resources
What is a Organization for QEP Resources? Defining Organization in VRIO
Even if the QEP Resources 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 QEP Resources 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 |
---|---|---|---|---|---|
Ability to Attract Talent in Various Local & Global Markets | Yes, QEP Resources 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 QEP Resources | To a large extent yes | Providing Strong Competitive Advantage |
Alignment of Activities with QEP Resources 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 |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with QEP Resources dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Access to Cheap Capital for QEP Resources | Yes, as a leading player in the industry and current macro economic conditions, QEP Resources has access to cheap capital | No | Can be imitated by the competitors of QEP Resources | Not been totally exploited | Not significant in creating competitive advantage |
Brand Positioning of QEP Resources in Comparison to the Competitors | Yes | No | Can be imitated by competitors but it will require big marketing budget | Yes, the firm has positioned its brands based on consumer behavior | Temporary Competitive Advantage |
Opportunities for Brand Extensions for QEP Resources 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 QEP Resources | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by QEP Resources organizational structure and capabilities | Keeps the business running |
Distribution and Logistics Costs Competitiveness | Yes, as it helps QEP Resources in delivering lower costs | No | Can be imitated by competitors of QEP Resources but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Position among Retailers and Wholesalers – QEP Resources retail strategy | Yes, QEP Resources has strong relationship with retailers and wholesalers | Yes, QEP Resources has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Global and Local Presence of QEP Resources | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of QEP Resources but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Pricing Strategies of QEP Resources | Yes, QEP Resources has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide QEP Resources with a Temporary Competitive Advantage |
Marketing Expertise within QEP Resources | 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 QEP Resources are often matched by competitors | Yes, QEP Resources is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Financial Resources of QEP Resources | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | QEP Resources has reasonably sound financial position | QEP Resources has relatively sustainable Competitive Advantage |
QEP Resources 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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