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Citi 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 Citi to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Citi? Defining Valuable in VRIO
A resource or capability is considered valuable for Citi , if it allows the
Citi to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Citi to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Citi.
What are Rare Resources for Citi? Defining Rare in VRIO
In an industry that Citi operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Citi require rare resources to compete in the industry. If Citi don’t have rare resources that are required to succeed in the industry then Citi won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Citi competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Citi? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Citi 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. Citi 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 Citi
What is a Organization for Citi? Defining Organization in VRIO
Even if the Citi 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 Citi 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 |
---|---|---|---|---|---|
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Successful Implementation of Digital Strategy at Citi | 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 |
Track Record of Leadership Team at Citi | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Citi dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Brand awareness of Citi products and services | Yes, the brand awareness of Citi products are high | Yes, Citi has one of the leading brand in the industry | No | Citi has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Supply Chain Network Flexibility of Citi | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Citi organizational structure and capabilities | Keeps the business running |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Citi operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Citi is successful at it | Providing Strong Competitive Advantage |
Opportunities in the E-Commerce Space for Citi - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Citi 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 |
Citi 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 Citi | Citi is leveraging the customer loyalty to good effect | Provide Citi medium term competitive advantage |
Marketing Expertise within Citi | 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 Citi are often matched by competitors | Yes, Citi is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Financial Resources of Citi | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Citi has reasonably sound financial position | Citi has relatively sustainable Competitive Advantage |
Position among Retailers and Wholesalers – Citi retail strategy | Yes, Citi has strong relationship with retailers and wholesalers | Yes, Citi has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Citi in delivering lower costs | No | Can be imitated by competitors of Citi but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Citi | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Citi 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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