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Mitsui (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 Mitsui (Conglomerate) to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Mitsui (Conglomerate)? Defining Valuable in VRIO
A resource or capability is considered valuable for Mitsui (Conglomerate) , if it allows the
Mitsui (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 Mitsui (Conglomerate) to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Mitsui (Conglomerate).
What are Rare Resources for Mitsui (Conglomerate)? Defining Rare in VRIO
In an industry that Mitsui (Conglomerate) operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Mitsui (Conglomerate) require rare resources to compete in the industry. If Mitsui (Conglomerate) don’t have rare resources that are required to succeed in the industry then Mitsui (Conglomerate) won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Mitsui (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 Mitsui (Conglomerate)? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Mitsui (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. Mitsui (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 Mitsui (Conglomerate)
What is a Organization for Mitsui (Conglomerate)? Defining Organization in VRIO
Even if the Mitsui (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 Mitsui (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 |
---|---|---|---|---|---|
Financial Resources of Mitsui (Conglomerate) | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Mitsui (Conglomerate) has reasonably sound financial position | Mitsui (Conglomerate) has relatively sustainable Competitive Advantage |
Opportunities in the Adjacent Industries that Mitsui (Conglomerate) can exploit & New Resources Required to Enter those Industries | Can be valuable as they will create new revenue streams | No | Can be imitated by competitors | All the capabilities of the organization are not fully utilized yet | Has potential |
Position among Retailers and Wholesalers – Mitsui (Conglomerate) retail strategy | Yes, Mitsui (Conglomerate) has strong relationship with retailers and wholesalers | Yes, Mitsui (Conglomerate) has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Sales Force and Channel Management of Mitsui (Conglomerate) | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Mitsui (Conglomerate) sustainable competitive advantage. Potential is certainly there. |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Mitsui (Conglomerate) in delivering lower costs | No | Can be imitated by competitors of Mitsui (Conglomerate) but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Track Record of Leadership Team at Mitsui (Conglomerate) | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of Mitsui (Conglomerate) | 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 |
Access to Cheap Capital for Mitsui (Conglomerate) | Yes, as a leading player in the industry and current macro economic conditions, Mitsui (Conglomerate) has access to cheap capital | No | Can be imitated by the competitors of Mitsui (Conglomerate) | Not been totally exploited | Not significant in creating competitive advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Mitsui (Conglomerate) operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Mitsui (Conglomerate) is successful at it | Providing Strong Competitive Advantage |
Successful Implementation of Digital Strategy at Mitsui (Conglomerate) | 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 |
Opportunities for Brand Extensions for Mitsui (Conglomerate) 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 |
Opportunities in the E-Commerce Space for Mitsui (Conglomerate) - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Mitsui (Conglomerate) 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Mitsui (Conglomerate) | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Alignment of Activities with Mitsui (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 |
Mitsui (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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