China CITIC Bank 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 China CITIC Bank to do better resource allocation and build a defensible value and supply chain.

Order a China CITIC Bank VRIO / VRIN Analysis now

What is a Valuable Resource for China CITIC Bank? Defining Valuable in VRIO

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

What are Rare Resources for China CITIC Bank? Defining Rare in VRIO

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

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

A valuable and rare resource can provide a competitive advantage to China CITIC Bank 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. China CITIC Bank 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 China CITIC Bank

What is a Organization for China CITIC Bank? Defining Organization in VRIO

Even if the China CITIC Bank 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 China CITIC Bank 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
Distribution and Logistics Costs Competitiveness	Yes, as it helps China CITIC Bank in delivering lower costs	No	Can be imitated by competitors of China CITIC Bank but it is difficult	Yes	Medium to Long Term Competitive Advantage
Opportunities in the E-Commerce Space for China CITIC Bank - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and China CITIC Bank 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
Ability to Attract Talent in Various Local & Global Markets	Yes, China CITIC Bank 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 China CITIC Bank	To a large extent yes	Providing Strong Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for China CITIC Bank to thwart competition	Yes, IPR and other rights are rare and competition of China CITIC Bank 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
Alignment of Activities with China CITIC Bank 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
Financial Resources of China CITIC Bank	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	China CITIC Bank has reasonably sound financial position	China CITIC Bank has relatively sustainable Competitive Advantage
Brand awareness of China CITIC Bank products and services	Yes, the brand awareness of China CITIC Bank products are high	Yes, China CITIC Bank has one of the leading brand in the industry	No	China CITIC Bank has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Access to Cheap Capital for China CITIC Bank	Yes, as a leading player in the industry and current macro economic conditions, China CITIC Bank has access to cheap capital	No	Can be imitated by the competitors of China CITIC Bank	Not been totally exploited	Not significant in creating competitive advantage
Product Portfolio and Synergy among Various Product Lines of China CITIC Bank	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
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with China CITIC Bank dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Global and Local Presence of China CITIC Bank	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of China CITIC Bank but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Successful Implementation of Digital Strategy at China CITIC Bank	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
Pricing Strategies of China CITIC Bank	Yes, China CITIC Bank has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide China CITIC Bank with a Temporary Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor

China CITIC Bank 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