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DBS 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 DBS to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for DBS? Defining Valuable in VRIO
A resource or capability is considered valuable for DBS , if it allows the
DBS to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow DBS to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for DBS.
What are Rare Resources for DBS? Defining Rare in VRIO
In an industry that DBS operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. DBS require rare resources to compete in the industry. If DBS don’t have rare resources that are required to succeed in the industry then DBS won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide DBS competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for DBS? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to DBS 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. DBS 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 DBS
What is a Organization for DBS? Defining Organization in VRIO
Even if the DBS 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 DBS 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 |
---|---|---|---|---|---|
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Product Portfolio and Synergy among Various Product Lines of DBS | 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 DBS in delivering lower costs | No | Can be imitated by competitors of DBS but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Access to Cheap Capital for DBS | Yes, as a leading player in the industry and current macro economic conditions, DBS has access to cheap capital | No | Can be imitated by the competitors of DBS | 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 DBS | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Supply Chain Network Flexibility of DBS | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by DBS organizational structure and capabilities | Keeps the business running |
Customer Community of DBS | Yes, as customers are co-creating products | Yes, the DBS has able to build a special relationship with its customers | It is very difficult for DBS competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on DBS customers community ecosystem | Providing Strong Competitive Advantage |
Financial Resources of DBS | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | DBS has reasonably sound financial position | DBS has relatively sustainable Competitive Advantage |
Opportunities for Brand Extensions for DBS 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 |
Pricing Strategies of DBS | Yes, DBS has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide DBS with a Temporary Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for DBS to thwart competition | Yes, IPR and other rights are rare and competition of DBS 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 – DBS retail strategy | Yes, DBS has strong relationship with retailers and wholesalers | Yes, DBS has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Marketing Expertise within DBS | 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 DBS are often matched by competitors | Yes, DBS is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Alignment of Activities with DBS 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 |
DBS 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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