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

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What is a Valuable Resource for Rackspace Hosting? Defining Valuable in VRIO

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

What are Rare Resources for Rackspace Hosting? Defining Rare in VRIO

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

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

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

What is a Organization for Rackspace Hosting? Defining Organization in VRIO

Even if the Rackspace Hosting 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 Rackspace Hosting 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
Pricing Strategies of Rackspace Hosting	Yes, Rackspace Hosting has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Rackspace Hosting with a Temporary Competitive Advantage
Successful Implementation of Digital Strategy at Rackspace Hosting	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
Marketing Expertise within Rackspace Hosting	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 Rackspace Hosting are often matched by competitors	Yes, Rackspace Hosting is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Brand Positioning of Rackspace Hosting 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
Financial Resources of Rackspace Hosting	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Rackspace Hosting has reasonably sound financial position	Rackspace Hosting has relatively sustainable Competitive Advantage
Product Portfolio and Synergy among Various Product Lines of Rackspace Hosting	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
Distribution and Logistics Costs Competitiveness	Yes, as it helps Rackspace Hosting in delivering lower costs	No	Can be imitated by competitors of Rackspace Hosting but it is difficult	Yes	Medium to Long Term Competitive Advantage
Access to Cheap Capital for Rackspace Hosting	Yes, as a leading player in the industry and current macro economic conditions, Rackspace Hosting has access to cheap capital	No	Can be imitated by the competitors of Rackspace Hosting	Not been totally exploited	Not significant in creating competitive advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Rackspace Hosting dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Ability to Attract Talent in Various Local & Global Markets	Yes, Rackspace Hosting 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 Rackspace Hosting	To a large extent yes	Providing Strong Competitive Advantage
Global and Local Presence of Rackspace Hosting	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Rackspace Hosting but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Opportunities in the Adjacent Industries that Rackspace Hosting 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
Position among Retailers and Wholesalers – Rackspace Hosting retail strategy	Yes, Rackspace Hosting has strong relationship with retailers and wholesalers	Yes, Rackspace Hosting has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Track Record of Leadership Team at Rackspace Hosting	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage

Rackspace Hosting 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