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SoftBank 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 SoftBank to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for SoftBank? Defining Valuable in VRIO
A resource or capability is considered valuable for SoftBank , if it allows the
SoftBank to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow SoftBank to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for SoftBank.
What are Rare Resources for SoftBank? Defining Rare in VRIO
In an industry that SoftBank operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. SoftBank require rare resources to compete in the industry. If SoftBank don’t have rare resources that are required to succeed in the industry then SoftBank won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide SoftBank competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for SoftBank? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to SoftBank 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. SoftBank 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 SoftBank
What is a Organization for SoftBank? Defining Organization in VRIO
Even if the SoftBank 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 SoftBank 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 Leadership Team at SoftBank | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps SoftBank in delivering lower costs | No | Can be imitated by competitors of SoftBank but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Position among Retailers and Wholesalers – SoftBank retail strategy | Yes, SoftBank has strong relationship with retailers and wholesalers | Yes, SoftBank has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Alignment of Activities with SoftBank 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 |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with SoftBank dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Opportunities for Brand Extensions for SoftBank products | Yes, new niches are emerging in the market | No, as most of the competitors are also targeting those niches | Yes can be imitated by the competitors | Brand extensions will require higher marketing budget | Temporary Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for SoftBank to thwart competition | Yes, IPR and other rights are rare and competition of SoftBank 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 |
Supply Chain Network Flexibility of SoftBank | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by SoftBank organizational structure and capabilities | Keeps the business running |
Sales Force and Channel Management of SoftBank | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide SoftBank sustainable competitive advantage. Potential is certainly there. |
Customer Community of SoftBank | Yes, as customers are co-creating products | Yes, the SoftBank has able to build a special relationship with its customers | It is very difficult for SoftBank competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on SoftBank customers community ecosystem | Providing Strong Competitive Advantage |
Opportunities in the E-Commerce Space for SoftBank - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and SoftBank 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 |
Successful Implementation of Digital Strategy at SoftBank | 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 |
Marketing Expertise within SoftBank | 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 SoftBank are often matched by competitors | Yes, SoftBank is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
SoftBank 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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