This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective.
This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases. Under the VRIO analysis, the following steps are carried out:. The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization.
If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. The Value chain analysis of L Oreal S A Rolling out the Global Diversity Strategy helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation.
This tool is used in the case study analysis as follows:. Recognizing value creating activities and enhancing the value that they create allow L Oreal S A Rolling out the Global Diversity Strategy to increase its competitive advantage. The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units.
The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows:.
These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions.
The following steps are required to carry out a marketing mix analysis and include this in the case study analysis.
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A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy. The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors.
One of the microenvironmental factors are competitors, which are addressed by a competitor analysis.
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Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations:. The L Oreal S A Rolling out the Global Diversity Strategy case should be in a professional format, presenting points clearly that are well understood by the reader.
It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for L Oreal S A Rolling out the Global Diversity Strategy is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations.
The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer.
A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. It also lays down the changes needed to be made as well as the assumptions in the process. Baron, E. Free Management E-Books. Gupta, A. International Journal of Modern Social Sciences, 2 1 , Hambrick, D. Academy of Management Journal, 25 3 , Hill, C. Hussain, S. Management and Administrative Sciences Review, 2 2 , Kim, W.
Blue ocean strategy. If you read nothing else on strategy, read thesebest-selling articles. Kulkarni, N. Lin, C. A fuzzy quantitative VRIO-based framework for evaluating organizational activities.
Strong Potential To Build Global South African Brands: Strategy And Road Map
Management Decision, 50 8 , Nixon, J. Exploring SWOT analysis — where are we now? Journal of Strategy and Management, 3 3 , Pickton, D. What's swot in strategic analysis? Strategic Change, 7 2 , Porter, M. The value chain and competitive advantage. Understanding Business Processes, Competitive advantage: creating and sustaining superior performance Vol. New York: Free Press. March Jump to Page. Search inside document.
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