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Nuance Communications 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 Nuance Communications to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Nuance Communications? Defining Valuable in VRIO
A resource or capability is considered valuable for Nuance Communications , if it allows the
Nuance Communications to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Nuance Communications to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Nuance Communications.
What are Rare Resources for Nuance Communications? Defining Rare in VRIO
In an industry that Nuance Communications operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Nuance Communications require rare resources to compete in the industry. If Nuance Communications don’t have rare resources that are required to succeed in the industry then Nuance Communications won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Nuance Communications competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Nuance Communications? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Nuance Communications 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. Nuance Communications 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 Nuance Communications
What is a Organization for Nuance Communications? Defining Organization in VRIO
Even if the Nuance Communications 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 Nuance Communications 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 |
---|---|---|---|---|---|
Customer Community of Nuance Communications | Yes, as customers are co-creating products | Yes, the Nuance Communications has able to build a special relationship with its customers | It is very difficult for Nuance Communications competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Nuance Communications customers community ecosystem | Providing Strong Competitive Advantage |
Brand awareness of Nuance Communications products and services | Yes, the brand awareness of Nuance Communications products are high | Yes, Nuance Communications has one of the leading brand in the industry | No | Nuance Communications has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Nuance Communications 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 Nuance Communications | To a large extent yes | Providing Strong Competitive Advantage |
Opportunities in the Adjacent Industries that Nuance Communications 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 |
Marketing Expertise within Nuance Communications | 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 Nuance Communications are often matched by competitors | Yes, Nuance Communications is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Pricing Strategies of Nuance Communications | Yes, Nuance Communications has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Nuance Communications with a Temporary Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Nuance Communications to thwart competition | Yes, IPR and other rights are rare and competition of Nuance Communications 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 |
Global and Local Presence of Nuance Communications | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Nuance Communications but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of Nuance Communications | 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 – Nuance Communications retail strategy | Yes, Nuance Communications has strong relationship with retailers and wholesalers | Yes, Nuance Communications 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 Nuance Communications 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 |
Opportunities in the E-Commerce Space for Nuance Communications - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Nuance Communications 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 |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Nuance Communications dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Nuance Communications 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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