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ING (Banking) 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 ING (Banking) to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for ING (Banking)? Defining Valuable in VRIO
A resource or capability is considered valuable for ING (Banking) , if it allows the
ING (Banking) to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow ING (Banking) to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for ING (Banking).
What are Rare Resources for ING (Banking)? Defining Rare in VRIO
In an industry that ING (Banking) operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. ING (Banking) require rare resources to compete in the industry. If ING (Banking) don’t have rare resources that are required to succeed in the industry then ING (Banking) won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide ING (Banking) competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for ING (Banking)? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to ING (Banking) 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. ING (Banking) 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 ING (Banking)
What is a Organization for ING (Banking)? Defining Organization in VRIO
Even if the ING (Banking) 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 ING (Banking) 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 |
---|---|---|---|---|---|
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with ING (Banking) dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Track Record of Leadership Team at ING (Banking) | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
ING (Banking) 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 ING (Banking) | ING (Banking) is leveraging the customer loyalty to good effect | Provide ING (Banking) medium term competitive advantage |
Pricing Strategies of ING (Banking) | Yes, ING (Banking) has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide ING (Banking) with a Temporary Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, ING (Banking) 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 ING (Banking) | To a large extent yes | Providing Strong Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of ING (Banking) | 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 |
Financial Resources of ING (Banking) | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | ING (Banking) has reasonably sound financial position | ING (Banking) has relatively sustainable Competitive Advantage |
Global and Local Presence of ING (Banking) | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of ING (Banking) but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Supply Chain Network Flexibility of ING (Banking) | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by ING (Banking) organizational structure and capabilities | Keeps the business running |
Sales Force and Channel Management of ING (Banking) | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide ING (Banking) sustainable competitive advantage. Potential is certainly there. |
Distribution and Logistics Costs Competitiveness | Yes, as it helps ING (Banking) in delivering lower costs | No | Can be imitated by competitors of ING (Banking) but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that ING (Banking) operates in | No, none of the competitors so far has able to imitate this expertise | Yes, ING (Banking) is successful at it | Providing Strong Competitive Advantage |
Access to Cheap Capital for ING (Banking) | Yes, as a leading player in the industry and current macro economic conditions, ING (Banking) has access to cheap capital | No | Can be imitated by the competitors of ING (Banking) | Not been totally exploited | Not significant in creating competitive advantage |
Customer Community of ING (Banking) | Yes, as customers are co-creating products | Yes, the ING (Banking) has able to build a special relationship with its customers | It is very difficult for ING (Banking) competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on ING (Banking) customers community ecosystem | Providing Strong Competitive Advantage |
ING (Banking) 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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