Mitsubishi (Conglomerate) 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 Mitsubishi (Conglomerate) to do better resource allocation and build a defensible value and supply chain.

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VRIO / VRIN Analysis

What is a Valuable Resource for Mitsubishi (Conglomerate)? Defining Valuable in VRIO


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

What are Rare Resources for Mitsubishi (Conglomerate)? Defining Rare in VRIO


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

What is a Inimitable (Difficult to Immitate) Resource for Mitsubishi (Conglomerate)? Defining Inimitable in VRIO


A valuable and rare resource can provide a competitive advantage to Mitsubishi (Conglomerate) 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. Mitsubishi (Conglomerate) 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 Mitsubishi (Conglomerate)

What is a Organization for Mitsubishi (Conglomerate)? Defining Organization in VRIO


Even if the Mitsubishi (Conglomerate) 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 Mitsubishi (Conglomerate) 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 Mitsubishi (Conglomerate) dominant market position Can be imitated by competitors Yes Providing Sustainable Competitive Advantage
Access to Cheap Capital for Mitsubishi (Conglomerate) Yes, as a leading player in the industry and current macro economic conditions, Mitsubishi (Conglomerate) has access to cheap capital No Can be imitated by the competitors of Mitsubishi (Conglomerate) Not been totally exploited Not significant in creating competitive advantage
Sales Force and Channel Management of Mitsubishi (Conglomerate) Yes No Can be imitated by competitors Still there is lot of potential to utilize the excellent sales force Can provide Mitsubishi (Conglomerate) sustainable competitive advantage. Potential is certainly there.
Vision of the Leadership for Next Set of Challenges Yes No Can't be imitated by competitors of Mitsubishi (Conglomerate) Not based on information provided in the case Can Lead to Strong Competitive Advantage
Ability to Attract Talent in Various Local & Global Markets Yes, Mitsubishi (Conglomerate) 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 Mitsubishi (Conglomerate) To a large extent yes Providing Strong Competitive Advantage
Brand Positioning of Mitsubishi (Conglomerate) 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
Global and Local Presence of Mitsubishi (Conglomerate) Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles Yes Can be imitated by competitors of Mitsubishi (Conglomerate) but at a relatively high cost Yes, it is one of the most diversified companies in its industry Providing Strong Competitive Advantage
Financial Resources of Mitsubishi (Conglomerate) Yes No Financial instruments and market liquidity are available to all the nearest competitors Mitsubishi (Conglomerate) has reasonably sound financial position Mitsubishi (Conglomerate) 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 Mitsubishi (Conglomerate) operates in No, none of the competitors so far has able to imitate this expertise Yes, Mitsubishi (Conglomerate) is successful at it Providing Strong Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks Yes, they are extremely valuable for Mitsubishi (Conglomerate) to thwart competition Yes, IPR and other rights are rare and competition of Mitsubishi (Conglomerate) 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 Mitsubishi (Conglomerate) products and services Yes, the brand awareness of Mitsubishi (Conglomerate) products are high Yes, Mitsubishi (Conglomerate) has one of the leading brand in the industry No Mitsubishi (Conglomerate) has utilized its leading brand position in various segments Sustainable Competitive Advantage
Supply Chain Network Flexibility of Mitsubishi (Conglomerate) Yes Yes Near competitors also have flexible supply chain and share some of the suppliers Fully utilized by Mitsubishi (Conglomerate) organizational structure and capabilities Keeps the business running
Alignment of Activities with Mitsubishi (Conglomerate) 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
Track Record of Leadership Team at Mitsubishi (Conglomerate) Yes Yes Can't be imitated by competitors Yes Providing Strong Competitive Advantage


Mitsubishi (Conglomerate) 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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