Credit Suisse 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 Credit Suisse to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Credit Suisse? Defining Valuable in VRIO

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

What are Rare Resources for Credit Suisse? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Credit Suisse? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Credit Suisse 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. Credit Suisse 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 Credit Suisse

What is a Organization for Credit Suisse? Defining Organization in VRIO

Even if the Credit Suisse 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 Credit Suisse 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 Credit Suisse	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
Opportunities in the E-Commerce Space for Credit Suisse - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Credit Suisse 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
Distribution and Logistics Costs Competitiveness	Yes, as it helps Credit Suisse in delivering lower costs	No	Can be imitated by competitors of Credit Suisse but it is difficult	Yes	Medium to Long Term Competitive Advantage
Global and Local Presence of Credit Suisse	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Credit Suisse but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Credit Suisse 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 Credit Suisse	Credit Suisse is leveraging the customer loyalty to good effect	Provide Credit Suisse medium 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 Credit Suisse operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Credit Suisse is successful at it	Providing Strong Competitive Advantage
Brand Positioning of Credit Suisse 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
Financial Resources of Credit Suisse	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Credit Suisse has reasonably sound financial position	Credit Suisse has relatively sustainable Competitive Advantage
Track Record of Leadership Team at Credit Suisse	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Credit Suisse to thwart competition	Yes, IPR and other rights are rare and competition of Credit Suisse 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
Ability to Attract Talent in Various Local & Global Markets	Yes, Credit Suisse 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 Credit Suisse	To a large extent yes	Providing Strong Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Credit Suisse	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Successful Implementation of Digital Strategy at Credit Suisse	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 Credit Suisse	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Credit Suisse sustainable competitive advantage. Potential is certainly there.

Credit Suisse 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