Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
EP Energy 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 EP Energy to do better resource allocation and build a defensible value and supply chain.
Order a EP Energy VRIO / VRIN Analysis now
What is a Valuable Resource for EP Energy? Defining Valuable in VRIO
A resource or capability is considered valuable for EP Energy , if it allows the
EP Energy to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow EP Energy to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for EP Energy.
What are Rare Resources for EP Energy? Defining Rare in VRIO
In an industry that EP Energy operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. EP Energy require rare resources to compete in the industry. If EP Energy don’t have rare resources that are required to succeed in the industry then EP Energy won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide EP Energy competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for EP Energy? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to EP Energy 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. EP Energy 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 EP Energy
What is a Organization for EP Energy? Defining Organization in VRIO
Even if the EP Energy 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 EP Energy 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 |
---|---|---|---|---|---|
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with EP Energy dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, EP Energy 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 EP Energy | To a large extent yes | Providing Strong Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for EP Energy to thwart competition | Yes, IPR and other rights are rare and competition of EP Energy 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 |
Brand awareness of EP Energy products and services | Yes, the brand awareness of EP Energy products are high | Yes, EP Energy has one of the leading brand in the industry | No | EP Energy has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Position among Retailers and Wholesalers – EP Energy retail strategy | Yes, EP Energy has strong relationship with retailers and wholesalers | Yes, EP Energy has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
EP Energy 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 EP Energy | EP Energy is leveraging the customer loyalty to good effect | Provide EP Energy medium term competitive advantage |
Product Portfolio and Synergy among Various Product Lines of EP Energy | 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 |
Brand Positioning of EP Energy 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 in the Adjacent Industries that EP Energy 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 |
Financial Resources of EP Energy | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | EP Energy has reasonably sound financial position | EP Energy has relatively sustainable Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that EP Energy operates in | No, none of the competitors so far has able to imitate this expertise | Yes, EP Energy is successful at it | Providing Strong Competitive Advantage |
Opportunities in the E-Commerce Space for EP Energy - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and EP Energy 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 |
Pricing Strategies of EP Energy | Yes, EP Energy has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide EP Energy with a Temporary Competitive Advantage |
Opportunities for Brand Extensions for EP Energy 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 |
EP Energy 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
MBA Admission help, MBA Assignment Help, MBA Case Study Help, Online Analytics Live Classes
Order Now
Previous VRIO / VRIN Analysis
- MDC Holdings VRIO / VRIN Analysis
- DeVry Education Group VRIO / VRIN Analysis
- Revlon VRIO / VRIN Analysis
- BlueLinx Holdings VRIO / VRIN Analysis
- F5 Networks VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- New York Community Bancorp VRIO / VRIN Analysis
- Portland General Electric VRIO / VRIN Analysis
- DCP Midstream Partners VRIO / VRIN Analysis
- Wendy VRIO / VRIN Analysis
- Briggs & Stratton VRIO / VRIN Analysis