National Australia 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 National Australia Bank to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for National Australia Bank? Defining Valuable in VRIO

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

What are Rare Resources for National Australia Bank? Defining Rare in VRIO

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

A valuable and rare resource can provide a competitive advantage to National Australia 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. National Australia 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 National Australia Bank

What is a Organization for National Australia Bank? Defining Organization in VRIO

Even if the National Australia 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 National Australia 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
Opportunities in the Adjacent Industries that National Australia 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
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Access to Cheap Capital for National Australia Bank	Yes, as a leading player in the industry and current macro economic conditions, National Australia Bank has access to cheap capital	No	Can be imitated by the competitors of National Australia Bank	Not been totally exploited	Not significant in creating competitive advantage
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that National Australia Bank operates in	No, none of the competitors so far has able to imitate this expertise	Yes, National Australia Bank is successful at it	Providing Strong Competitive Advantage
Financial Resources of National Australia Bank	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	National Australia Bank has reasonably sound financial position	National Australia Bank has relatively sustainable Competitive Advantage
Pricing Strategies of National Australia Bank	Yes, National Australia 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 National Australia Bank with a Temporary Competitive Advantage
Alignment of Activities with National Australia 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
Opportunities in the E-Commerce Space for National Australia Bank - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and National Australia 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
Track Record of Leadership Team at National Australia Bank	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with National Australia Bank dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
National Australia 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 National Australia Bank	National Australia Bank is leveraging the customer loyalty to good effect	Provide National Australia Bank medium term competitive advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for National Australia Bank to thwart competition	Yes, IPR and other rights are rare and competition of National Australia 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
Opportunities for Brand Extensions for National Australia 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
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of National Australia Bank	Not based on information provided in the case	Can Lead to Strong Competitive Advantage

National Australia 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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