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Industrial 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 Industrial Bank to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Industrial Bank? Defining Valuable in VRIO
A resource or capability is considered valuable for Industrial Bank , if it allows the
Industrial 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 Industrial Bank to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Industrial Bank.
What are Rare Resources for Industrial Bank? Defining Rare in VRIO
In an industry that Industrial Bank operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Industrial Bank require rare resources to compete in the industry. If Industrial Bank don’t have rare resources that are required to succeed in the industry then Industrial Bank won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Industrial 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 Industrial Bank? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Industrial 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. Industrial 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 Industrial Bank
What is a Organization for Industrial Bank? Defining Organization in VRIO
Even if the Industrial 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 Industrial 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 |
---|---|---|---|---|---|
Brand Positioning of Industrial Bank 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 for Brand Extensions for Industrial Bank 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 |
Brand awareness of Industrial Bank products and services | Yes, the brand awareness of Industrial Bank products are high | Yes, Industrial Bank has one of the leading brand in the industry | No | Industrial Bank has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Pricing Strategies of Industrial Bank | Yes, Industrial 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 Industrial Bank with a Temporary Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Industrial Bank in delivering lower costs | No | Can be imitated by competitors of Industrial Bank but it is difficult | Yes | Medium to Long Term 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 Industrial Bank | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Industrial Bank sustainable competitive advantage. Potential is certainly there. |
Position among Retailers and Wholesalers – Industrial Bank retail strategy | Yes, Industrial Bank has strong relationship with retailers and wholesalers | Yes, Industrial Bank has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Alignment of Activities with Industrial 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 |
Track Record of Leadership Team at Industrial Bank | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Financial Resources of Industrial Bank | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Industrial Bank has reasonably sound financial position | Industrial Bank has relatively sustainable Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Industrial 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 Industrial Bank | To a large extent yes | Providing Strong Competitive Advantage |
Supply Chain Network Flexibility of Industrial Bank | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Industrial Bank organizational structure and capabilities | Keeps the business running |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Industrial Bank dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Industrial 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
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