T (Deutsche Telekom) 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 T (Deutsche Telekom) to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for T (Deutsche Telekom)? Defining Valuable in VRIO

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

What are Rare Resources for T (Deutsche Telekom)? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for T (Deutsche Telekom)? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to T (Deutsche Telekom) 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. T (Deutsche Telekom) 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 T (Deutsche Telekom)

What is a Organization for T (Deutsche Telekom)? Defining Organization in VRIO

Even if the T (Deutsche Telekom) 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 T (Deutsche Telekom) 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
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that T (Deutsche Telekom) operates in	No, none of the competitors so far has able to imitate this expertise	Yes, T (Deutsche Telekom) is successful at it	Providing Strong Competitive Advantage
Supply Chain Network Flexibility of T (Deutsche Telekom)	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by T (Deutsche Telekom) organizational structure and capabilities	Keeps the business running
T (Deutsche Telekom) 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 T (Deutsche Telekom)	T (Deutsche Telekom) is leveraging the customer loyalty to good effect	Provide T (Deutsche Telekom) medium term competitive advantage
Product Portfolio and Synergy among Various Product Lines of T (Deutsche Telekom)	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
Marketing Expertise within T (Deutsche Telekom)	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 T (Deutsche Telekom) are often matched by competitors	Yes, T (Deutsche Telekom) is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Position among Retailers and Wholesalers – T (Deutsche Telekom) retail strategy	Yes, T (Deutsche Telekom) has strong relationship with retailers and wholesalers	Yes, T (Deutsche Telekom) has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with T (Deutsche Telekom) dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Financial Resources of T (Deutsche Telekom)	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	T (Deutsche Telekom) has reasonably sound financial position	T (Deutsche Telekom) has relatively sustainable Competitive Advantage
Pricing Strategies of T (Deutsche Telekom)	Yes, T (Deutsche Telekom) has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide T (Deutsche Telekom) with a Temporary Competitive Advantage
Alignment of Activities with T (Deutsche Telekom) Corporate Strategy	Yes	No	Each of the firm has its own strategy	Yes, company has organizational skills to extract the maximum out of it.	Still lots of potential to build on it
Ability to Attract Talent in Various Local & Global Markets	Yes, T (Deutsche Telekom) 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 T (Deutsche Telekom)	To a large extent yes	Providing Strong Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of T (Deutsche Telekom)	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Sales Force and Channel Management of T (Deutsche Telekom)	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide T (Deutsche Telekom) sustainable competitive advantage. Potential is certainly there.

T (Deutsche Telekom) 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