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NBC International 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 NBC International to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for NBC International? Defining Valuable in VRIO
A resource or capability is considered valuable for NBC International , if it allows the
NBC International to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow NBC International to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for NBC International.
What are Rare Resources for NBC International? Defining Rare in VRIO
In an industry that NBC International operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. NBC International require rare resources to compete in the industry. If NBC International don’t have rare resources that are required to succeed in the industry then NBC International won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide NBC International competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for NBC International? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to NBC International 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. NBC International 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 NBC International
What is a Organization for NBC International? Defining Organization in VRIO
Even if the NBC International 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 NBC International 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 |
Track Record of Leadership Team at NBC International | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Financial Resources of NBC International | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | NBC International has reasonably sound financial position | NBC International has relatively sustainable Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, NBC International 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 NBC International | To a large extent yes | Providing Strong Competitive Advantage |
Alignment of Activities with NBC International 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 |
Opportunities for Brand Extensions for NBC International 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps NBC International in delivering lower costs | No | Can be imitated by competitors of NBC International but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Brand awareness of NBC International products and services | Yes, the brand awareness of NBC International products are high | Yes, NBC International has one of the leading brand in the industry | No | NBC International has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Access to Cheap Capital for NBC International | Yes, as a leading player in the industry and current macro economic conditions, NBC International has access to cheap capital | No | Can be imitated by the competitors of NBC International | 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 NBC International operates in | No, none of the competitors so far has able to imitate this expertise | Yes, NBC International is successful at it | Providing Strong Competitive Advantage |
Successful Implementation of Digital Strategy at NBC International | 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 |
Sales Force and Channel Management of NBC International | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide NBC International sustainable competitive advantage. Potential is certainly there. |
Product Portfolio and Synergy among Various Product Lines of NBC International | 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 |
Brand Positioning of NBC International 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 |
NBC International 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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