DCP Midstream Partners 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 DCP Midstream Partners to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for DCP Midstream Partners? Defining Valuable in VRIO

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

What are Rare Resources for DCP Midstream Partners? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for DCP Midstream Partners? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to DCP Midstream Partners 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. DCP Midstream Partners 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 DCP Midstream Partners

What is a Organization for DCP Midstream Partners? Defining Organization in VRIO

Even if the DCP Midstream Partners 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 DCP Midstream Partners 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
Successful Implementation of Digital Strategy at DCP Midstream Partners	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
Supply Chain Network Flexibility of DCP Midstream Partners	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by DCP Midstream Partners organizational structure and capabilities	Keeps the business running
Track Record of Leadership Team at DCP Midstream Partners	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Sales Force and Channel Management of DCP Midstream Partners	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide DCP Midstream Partners sustainable competitive advantage. Potential is certainly there.
Financial Resources of DCP Midstream Partners	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	DCP Midstream Partners has reasonably sound financial position	DCP Midstream Partners has relatively sustainable Competitive Advantage
Product Portfolio and Synergy among Various Product Lines of DCP Midstream Partners	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
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for DCP Midstream Partners to thwart competition	Yes, IPR and other rights are rare and competition of DCP Midstream Partners 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
Marketing Expertise within DCP Midstream Partners	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 DCP Midstream Partners are often matched by competitors	Yes, DCP Midstream Partners is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of DCP Midstream Partners	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Brand awareness of DCP Midstream Partners products and services	Yes, the brand awareness of DCP Midstream Partners products are high	Yes, DCP Midstream Partners has one of the leading brand in the industry	No	DCP Midstream Partners has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Opportunities in the E-Commerce Space for DCP Midstream Partners - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and DCP Midstream Partners 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
Position among Retailers and Wholesalers – DCP Midstream Partners retail strategy	Yes, DCP Midstream Partners has strong relationship with retailers and wholesalers	Yes, DCP Midstream Partners has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Customer Community of DCP Midstream Partners	Yes, as customers are co-creating products	Yes, the DCP Midstream Partners has able to build a special relationship with its customers	It is very difficult for DCP Midstream Partners competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on DCP Midstream Partners customers community ecosystem	Providing Strong Competitive Advantage

DCP Midstream Partners SWOT Analysis, SWOT Matrix, Weighted SWOT Case Study Solution & Analysis

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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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