Bank of Montreal 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 Bank of Montreal to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Bank of Montreal? Defining Valuable in VRIO

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

What are Rare Resources for Bank of Montreal? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Bank of Montreal? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Bank of Montreal 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. Bank of Montreal 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 Bank of Montreal

What is a Organization for Bank of Montreal? Defining Organization in VRIO

Even if the Bank of Montreal 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 Bank of Montreal 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
Opportunities for Brand Extensions for Bank of Montreal 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
Marketing Expertise within Bank of Montreal	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 Bank of Montreal are often matched by competitors	Yes, Bank of Montreal is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Alignment of Activities with Bank of Montreal 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
Product Portfolio and Synergy among Various Product Lines of Bank of Montreal	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
Distribution and Logistics Costs Competitiveness	Yes, as it helps Bank of Montreal in delivering lower costs	No	Can be imitated by competitors of Bank of Montreal but it is difficult	Yes	Medium to Long Term Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Bank of Montreal to thwart competition	Yes, IPR and other rights are rare and competition of Bank of Montreal 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 Bank of Montreal operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Bank of Montreal is successful at it	Providing Strong Competitive Advantage
Global and Local Presence of Bank of Montreal	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Bank of Montreal but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Ability to Attract Talent in Various Local & Global Markets	Yes, Bank of Montreal 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 Bank of Montreal	To a large extent yes	Providing Strong Competitive Advantage
Position among Retailers and Wholesalers – Bank of Montreal retail strategy	Yes, Bank of Montreal has strong relationship with retailers and wholesalers	Yes, Bank of Montreal has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Track Record of Leadership Team at Bank of Montreal	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Access to Cheap Capital for Bank of Montreal	Yes, as a leading player in the industry and current macro economic conditions, Bank of Montreal has access to cheap capital	No	Can be imitated by the competitors of Bank of Montreal	Not been totally exploited	Not significant in creating competitive advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Bank of Montreal	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Brand Positioning of Bank of Montreal 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

Bank of Montreal 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