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

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

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

What are Rare Resources for telenor? Defining Rare in VRIO

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

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

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

What is a Organization for telenor? Defining Organization in VRIO

Even if the telenor 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 telenor 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
Position among Retailers and Wholesalers – telenor retail strategy	Yes, telenor has strong relationship with retailers and wholesalers	Yes, telenor has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps telenor in delivering lower costs	No	Can be imitated by competitors of telenor but it is difficult	Yes	Medium to Long Term Competitive Advantage
Sales Force and Channel Management of telenor	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide telenor sustainable competitive advantage. Potential is certainly there.
Brand awareness of telenor products and services	Yes, the brand awareness of telenor products are high	Yes, telenor has one of the leading brand in the industry	No	telenor has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Global and Local Presence of telenor	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of telenor but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with telenor dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Ability to Attract Talent in Various Local & Global Markets	Yes, telenor 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 telenor	To a large extent yes	Providing Strong Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for telenor to thwart competition	Yes, IPR and other rights are rare and competition of telenor 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
Product Portfolio and Synergy among Various Product Lines of telenor	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
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Alignment of Activities with telenor 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
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of telenor	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Track Record of Leadership Team at telenor	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Customer Community of telenor	Yes, as customers are co-creating products	Yes, the telenor has able to build a special relationship with its customers	It is very difficult for telenor competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on telenor customers community ecosystem	Providing Strong Competitive Advantage

telenor 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