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Griffon 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 Griffon to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Griffon? Defining Valuable in VRIO
A resource or capability is considered valuable for Griffon , if it allows the
Griffon to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Griffon to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Griffon.
What are Rare Resources for Griffon? Defining Rare in VRIO
In an industry that Griffon operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Griffon require rare resources to compete in the industry. If Griffon don’t have rare resources that are required to succeed in the industry then Griffon won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Griffon competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Griffon? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Griffon 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. Griffon 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 Griffon
What is a Organization for Griffon? Defining Organization in VRIO
Even if the Griffon 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 Griffon 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, Griffon 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 Griffon | To a large extent yes | Providing Strong Competitive Advantage |
Supply Chain Network Flexibility of Griffon | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Griffon organizational structure and capabilities | Keeps the business running |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Griffon to thwart competition | Yes, IPR and other rights are rare and competition of Griffon 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 |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Access to Cheap Capital for Griffon | Yes, as a leading player in the industry and current macro economic conditions, Griffon has access to cheap capital | No | Can be imitated by the competitors of Griffon | Not been totally exploited | Not significant in creating competitive advantage |
Global and Local Presence of Griffon | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Griffon but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Griffon in delivering lower costs | No | Can be imitated by competitors of Griffon but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Marketing Expertise within Griffon | 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 Griffon are often matched by competitors | Yes, Griffon is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Griffon 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 Griffon | Griffon is leveraging the customer loyalty to good effect | Provide Griffon medium term competitive advantage |
Product Portfolio and Synergy among Various Product Lines of Griffon | 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 |
Position among Retailers and Wholesalers – Griffon retail strategy | Yes, Griffon has strong relationship with retailers and wholesalers | Yes, Griffon has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Griffon | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Griffon operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Griffon is successful at it | Providing Strong Competitive Advantage |
Brand Positioning of Griffon 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 |
Griffon 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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