Bank of Communications 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 Bank of Communications to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Bank of Communications? Defining Valuable in VRIO

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

What are Rare Resources for Bank of Communications? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Bank of Communications? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Bank of Communications 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. Bank of Communications 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 Bank of Communications

What is a Organization for Bank of Communications? Defining Organization in VRIO

Even if the Bank of Communications 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 Bank of Communications 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
Product Portfolio and Synergy among Various Product Lines of Bank of Communications	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
Customer Community of Bank of Communications	Yes, as customers are co-creating products	Yes, the Bank of Communications has able to build a special relationship with its customers	It is very difficult for Bank of Communications competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Bank of Communications customers community ecosystem	Providing Strong Competitive Advantage
Track Record of Leadership Team at Bank of Communications	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Position among Retailers and Wholesalers – Bank of Communications retail strategy	Yes, Bank of Communications has strong relationship with retailers and wholesalers	Yes, Bank of Communications has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Brand awareness of Bank of Communications products and services	Yes, the brand awareness of Bank of Communications products are high	Yes, Bank of Communications has one of the leading brand in the industry	No	Bank of Communications has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Financial Resources of Bank of Communications	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Bank of Communications has reasonably sound financial position	Bank of Communications has relatively sustainable Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps Bank of Communications in delivering lower costs	No	Can be imitated by competitors of Bank of Communications but it is difficult	Yes	Medium to Long Term Competitive Advantage
Marketing Expertise within Bank of Communications	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 Bank of Communications are often matched by competitors	Yes, Bank of Communications is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Bank of Communications dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Brand Positioning of Bank of Communications 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
Alignment of Activities with Bank of Communications 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 in the Adjacent Industries that Bank of Communications 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
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Global and Local Presence of Bank of Communications	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Bank of Communications but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage

Bank of Communications 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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