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Swisscom 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 Swisscom to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Swisscom? Defining Valuable in VRIO
A resource or capability is considered valuable for Swisscom , if it allows the
Swisscom to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Swisscom to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Swisscom.
What are Rare Resources for Swisscom? Defining Rare in VRIO
In an industry that Swisscom operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Swisscom require rare resources to compete in the industry. If Swisscom don’t have rare resources that are required to succeed in the industry then Swisscom won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Swisscom competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Swisscom? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Swisscom 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. Swisscom 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 Swisscom
What is a Organization for Swisscom? Defining Organization in VRIO
Even if the Swisscom 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 Swisscom 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 |
---|---|---|---|---|---|
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Swisscom | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Brand Positioning of Swisscom 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 |
Opportunities in the Adjacent Industries that Swisscom 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 |
Alignment of Activities with Swisscom 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 |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Swisscom to thwart competition | Yes, IPR and other rights are rare and competition of Swisscom 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 |
Swisscom 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 Swisscom | Swisscom is leveraging the customer loyalty to good effect | Provide Swisscom medium term competitive advantage |
Opportunities for Brand Extensions for Swisscom products | Yes, new niches are emerging in the market | No, as most of the competitors are also targeting those niches | Yes can be imitated by the competitors | Brand extensions will require higher marketing budget | Temporary Competitive Advantage |
Marketing Expertise within Swisscom | 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 Swisscom are often matched by competitors | Yes, Swisscom is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Track Record of Leadership Team at Swisscom | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Swisscom 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 Swisscom | To a large extent yes | Providing Strong Competitive Advantage |
Pricing Strategies of Swisscom | Yes, Swisscom has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Swisscom with a Temporary Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Position among Retailers and Wholesalers – Swisscom retail strategy | Yes, Swisscom has strong relationship with retailers and wholesalers | Yes, Swisscom has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Financial Resources of Swisscom | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Swisscom has reasonably sound financial position | Swisscom has relatively sustainable Competitive Advantage |
Swisscom 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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