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

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

A resource or capability is considered valuable for Hitachi (Conglomerate) , if it allows the Hitachi (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 Hitachi (Conglomerate) to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Hitachi (Conglomerate).

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

In an industry that Hitachi (Conglomerate) operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Hitachi (Conglomerate) require rare resources to compete in the industry. If Hitachi (Conglomerate) don’t have rare resources that are required to succeed in the industry then Hitachi (Conglomerate) won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Hitachi (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 Hitachi (Conglomerate)? Defining Inimitable in VRIO

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

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

Even if the Hitachi (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 Hitachi (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
Marketing Expertise within Hitachi (Conglomerate)	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 Hitachi (Conglomerate) are often matched by competitors	Yes, Hitachi (Conglomerate) is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Supply Chain Network Flexibility of Hitachi (Conglomerate)	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Hitachi (Conglomerate) organizational structure and capabilities	Keeps the business running
Brand awareness of Hitachi (Conglomerate) products and services	Yes, the brand awareness of Hitachi (Conglomerate) products are high	Yes, Hitachi (Conglomerate) has one of the leading brand in the industry	No	Hitachi (Conglomerate) has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Hitachi (Conglomerate) operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Hitachi (Conglomerate) is successful at it	Providing Strong Competitive Advantage
Hitachi (Conglomerate) 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 Hitachi (Conglomerate)	Hitachi (Conglomerate) is leveraging the customer loyalty to good effect	Provide Hitachi (Conglomerate) medium term competitive advantage
Brand Positioning of Hitachi (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
Ability to Attract Talent in Various Local & Global Markets	Yes, Hitachi (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 Hitachi (Conglomerate)	To a large extent yes	Providing Strong Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Hitachi (Conglomerate) to thwart competition	Yes, IPR and other rights are rare and competition of Hitachi (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
Access to Cheap Capital for Hitachi (Conglomerate)	Yes, as a leading player in the industry and current macro economic conditions, Hitachi (Conglomerate) has access to cheap capital	No	Can be imitated by the competitors of Hitachi (Conglomerate)	Not been totally exploited	Not significant in creating competitive advantage
Alignment of Activities with Hitachi (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 Hitachi (Conglomerate)	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Position among Retailers and Wholesalers – Hitachi (Conglomerate) retail strategy	Yes, Hitachi (Conglomerate) has strong relationship with retailers and wholesalers	Yes, Hitachi (Conglomerate) has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Hitachi (Conglomerate)	Not based on information provided in the case	Can Lead to Strong Competitive Advantage

Hitachi (Conglomerate) SWOT Analysis, SWOT Matrix, Weighted SWOT Case Study Solution & Analysis

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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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