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

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

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

What are Rare Resources for KT? Defining Rare in VRIO

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

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

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

What is a Organization for KT? Defining Organization in VRIO

Even if the KT 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 KT 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 KT 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
KT 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 KT	KT is leveraging the customer loyalty to good effect	Provide KT medium term competitive advantage
Position among Retailers and Wholesalers – KT retail strategy	Yes, KT has strong relationship with retailers and wholesalers	Yes, KT has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for KT to thwart competition	Yes, IPR and other rights are rare and competition of KT 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
Distribution and Logistics Costs Competitiveness	Yes, as it helps KT in delivering lower costs	No	Can be imitated by competitors of KT but it is difficult	Yes	Medium to Long Term Competitive Advantage
Successful Implementation of Digital Strategy at KT	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
Brand Positioning of KT 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
Financial Resources of KT	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	KT has reasonably sound financial position	KT has relatively sustainable Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of KT	Not based on information provided in the case	Can Lead to 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 KT operates in	No, none of the competitors so far has able to imitate this expertise	Yes, KT is successful at it	Providing Strong Competitive Advantage
Ability to Attract Talent in Various Local & Global Markets	Yes, KT 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 KT	To a large extent yes	Providing Strong Competitive Advantage
Alignment of Activities with KT 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
Pricing Strategies of KT	Yes, KT has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide KT with a Temporary Competitive Advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with KT dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage

KT 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