Shanghai Pudong Development 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 Shanghai Pudong Development Bank to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Shanghai Pudong Development Bank? Defining Valuable in VRIO

A resource or capability is considered valuable for Shanghai Pudong Development Bank , if it allows the Shanghai Pudong Development 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 Shanghai Pudong Development Bank to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Shanghai Pudong Development Bank.

What are Rare Resources for Shanghai Pudong Development Bank? Defining Rare in VRIO

In an industry that Shanghai Pudong Development Bank operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Shanghai Pudong Development Bank require rare resources to compete in the industry. If Shanghai Pudong Development Bank don’t have rare resources that are required to succeed in the industry then Shanghai Pudong Development Bank won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Shanghai Pudong Development 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 Shanghai Pudong Development Bank? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Shanghai Pudong Development 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. Shanghai Pudong Development 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 Shanghai Pudong Development Bank

What is a Organization for Shanghai Pudong Development Bank? Defining Organization in VRIO

Even if the Shanghai Pudong Development 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 Shanghai Pudong Development 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 awareness of Shanghai Pudong Development Bank products and services	Yes, the brand awareness of Shanghai Pudong Development Bank products are high	Yes, Shanghai Pudong Development Bank has one of the leading brand in the industry	No	Shanghai Pudong Development Bank has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Access to Cheap Capital for Shanghai Pudong Development Bank	Yes, as a leading player in the industry and current macro economic conditions, Shanghai Pudong Development Bank has access to cheap capital	No	Can be imitated by the competitors of Shanghai Pudong Development Bank	Not been totally exploited	Not significant in creating competitive advantage
Track Record of Leadership Team at Shanghai Pudong Development Bank	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 Shanghai Pudong Development Bank to thwart competition	Yes, IPR and other rights are rare and competition of Shanghai Pudong Development 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
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Shanghai Pudong Development Bank operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Shanghai Pudong Development Bank is successful at it	Providing Strong Competitive Advantage
Shanghai Pudong Development Bank 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 Shanghai Pudong Development Bank	Shanghai Pudong Development Bank is leveraging the customer loyalty to good effect	Provide Shanghai Pudong Development Bank medium term competitive advantage
Product Portfolio and Synergy among Various Product Lines of Shanghai Pudong Development 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
Financial Resources of Shanghai Pudong Development Bank	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Shanghai Pudong Development Bank has reasonably sound financial position	Shanghai Pudong Development Bank has relatively sustainable Competitive Advantage
Pricing Strategies of Shanghai Pudong Development Bank	Yes, Shanghai Pudong Development 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 Shanghai Pudong Development Bank with a Temporary Competitive Advantage
Opportunities in the Adjacent Industries that Shanghai Pudong Development Bank 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
Sales Force and Channel Management of Shanghai Pudong Development Bank	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Shanghai Pudong Development Bank sustainable competitive advantage. Potential is certainly there.
Ability to Attract Talent in Various Local & Global Markets	Yes, Shanghai Pudong Development 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 Shanghai Pudong Development Bank	To a large extent yes	Providing Strong Competitive Advantage
Marketing Expertise within Shanghai Pudong Development Bank	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 Shanghai Pudong Development Bank are often matched by competitors	Yes, Shanghai Pudong Development Bank is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Shanghai Pudong Development Bank dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage

Shanghai Pudong Development Bank SWOT Analysis, SWOT Matrix, Weighted SWOT Case Study Solution & Analysis

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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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