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

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What is a Valuable Resource for Sberbank? Defining Valuable in VRIO

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

What are Rare Resources for Sberbank? Defining Rare in VRIO

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

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

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

What is a Organization for Sberbank? Defining Organization in VRIO

Even if the Sberbank 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 Sberbank 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 Cheap Capital for Sberbank	Yes, as a leading player in the industry and current macro economic conditions, Sberbank has access to cheap capital	No	Can be imitated by the competitors of Sberbank	Not been totally exploited	Not significant in creating competitive advantage
Financial Resources of Sberbank	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Sberbank has reasonably sound financial position	Sberbank has relatively sustainable Competitive Advantage
Opportunities for Brand Extensions for Sberbank 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
Position among Retailers and Wholesalers – Sberbank retail strategy	Yes, Sberbank has strong relationship with retailers and wholesalers	Yes, Sberbank has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Ability to Attract Talent in Various Local & Global Markets	Yes, Sberbank 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 Sberbank	To a large extent yes	Providing Strong Competitive Advantage
Customer Community of Sberbank	Yes, as customers are co-creating products	Yes, the Sberbank has able to build a special relationship with its customers	It is very difficult for Sberbank competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Sberbank customers community ecosystem	Providing Strong Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Sales Force and Channel Management of Sberbank	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Sberbank sustainable competitive advantage. Potential is certainly there.
Opportunities in the E-Commerce Space for Sberbank - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Sberbank 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
Brand awareness of Sberbank products and services	Yes, the brand awareness of Sberbank products are high	Yes, Sberbank has one of the leading brand in the industry	No	Sberbank has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Successful Implementation of Digital Strategy at Sberbank	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
Sberbank 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 Sberbank	Sberbank is leveraging the customer loyalty to good effect	Provide Sberbank medium term competitive advantage
Product Portfolio and Synergy among Various Product Lines of Sberbank	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
Track Record of Leadership Team at Sberbank	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage

Sberbank 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