Deere 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 Deere to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Deere? Defining Valuable in VRIO

A resource or capability is considered valuable for Deere , if it allows the Deere to exploit opportunities or negate threats emerging out of both the micro business environment and the macro environment. If a resource does not allow Deere to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Deere.

What are Rare Resources for Deere? Defining Rare in VRIO

In an industry that Deere operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Deere require rare resources to compete in the industry. If Deere don’t have rare resources that are required to succeed in the industry then Deere won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Deere competitive advantage against players that don’t have those rare resources. HBR Case Study Solution

What is a Inimitable (Difficult to Immitate) Resource for Deere? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Deere 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. Deere 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 Deere

What is a Organization for Deere? Defining Organization in VRIO

Even if the Deere 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 Deere 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
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Deere	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Successful Implementation of Digital Strategy at Deere	Yes, without a comprehensive digital strategy it is extremely difficult to compete	No, as most of the firms are investing into digitalizing operations	Can be imitated by competitors	One of the leading player in the industry	Digital strategy has become critical in the industry but it can't provide sustainable competitive advantage to
Customer Community of Deere	Yes, as customers are co-creating products	Yes, the Deere has able to build a special relationship with its customers	It is very difficult for Deere competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Deere customers community ecosystem	Providing Strong Competitive Advantage
Access to Cheap Capital for Deere	Yes, as a leading player in the industry and current macro economic conditions, Deere has access to cheap capital	No	Can be imitated by the competitors of Deere	Not been totally exploited	Not significant in creating competitive advantage
Global and Local Presence of Deere	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Deere but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Position among Retailers and Wholesalers – Deere retail strategy	Yes, Deere has strong relationship with retailers and wholesalers	Yes, Deere has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Ability to Attract Talent in Various Local & Global Markets	Yes, Deere 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 Deere	To a large extent yes	Providing Strong Competitive Advantage
Pricing Strategies of Deere	Yes, Deere has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Deere with a Temporary Competitive Advantage
Opportunities in the Adjacent Industries that Deere 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
Brand Positioning of Deere 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
Supply Chain Network Flexibility of Deere	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Deere organizational structure and capabilities	Keeps the business running
Marketing Expertise within Deere	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 Deere are often matched by competitors	Yes, Deere is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Deere 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 Deere	Deere is leveraging the customer loyalty to good effect	Provide Deere medium term competitive advantage
Opportunities in the E-Commerce Space for Deere - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Deere 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

Deere 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