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U.S. 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 U.S. Bank to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for U.S. Bank? Defining Valuable in VRIO
A resource or capability is considered valuable for U.S. Bank , if it allows the
U.S. 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 U.S. Bank to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for U.S. Bank.
What are Rare Resources for U.S. Bank? Defining Rare in VRIO
In an industry that U.S. Bank operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. U.S. Bank require rare resources to compete in the industry. If U.S. Bank don’t have rare resources that are required to succeed in the industry then U.S. Bank won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide U.S. 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 U.S. Bank? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to U.S. 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. U.S. 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 U.S. Bank
What is a Organization for U.S. Bank? Defining Organization in VRIO
Even if the U.S. 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 U.S. 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 |
---|---|---|---|---|---|
Alignment of Activities with U.S. 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 U.S. Bank | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Opportunities in the E-Commerce Space for U.S. Bank - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and U.S. 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 |
Successful Implementation of Digital Strategy at U.S. 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 |
U.S. 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 U.S. Bank | U.S. Bank is leveraging the customer loyalty to good effect | Provide U.S. Bank medium term competitive advantage |
Access to Cheap Capital for U.S. Bank | Yes, as a leading player in the industry and current macro economic conditions, U.S. Bank has access to cheap capital | No | Can be imitated by the competitors of U.S. Bank | Not been totally exploited | Not significant in creating competitive advantage |
Marketing Expertise within U.S. 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 U.S. Bank are often matched by competitors | Yes, U.S. Bank is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Opportunities in the Adjacent Industries that U.S. 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps U.S. Bank in delivering lower costs | No | Can be imitated by competitors of U.S. Bank but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of U.S. 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 |
Brand awareness of U.S. Bank products and services | Yes, the brand awareness of U.S. Bank products are high | Yes, U.S. Bank has one of the leading brand in the industry | No | U.S. Bank has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with U.S. Bank dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for U.S. Bank to thwart competition | Yes, IPR and other rights are rare and competition of U.S. 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 |
Position among Retailers and Wholesalers – U.S. Bank retail strategy | Yes, U.S. Bank has strong relationship with retailers and wholesalers | Yes, U.S. Bank has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
U.S. 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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