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

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

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

What are Rare Resources for Infosys? Defining Rare in VRIO

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

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

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

What is a Organization for Infosys? Defining Organization in VRIO

Even if the Infosys 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 Infosys 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
Supply Chain Network Flexibility of Infosys	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Infosys organizational structure and capabilities	Keeps the business running
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Infosys to thwart competition	Yes, IPR and other rights are rare and competition of Infosys 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
Pricing Strategies of Infosys	Yes, Infosys has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Infosys with a Temporary Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Financial Resources of Infosys	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Infosys has reasonably sound financial position	Infosys has relatively sustainable Competitive Advantage
Customer Community of Infosys	Yes, as customers are co-creating products	Yes, the Infosys has able to build a special relationship with its customers	It is very difficult for Infosys competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Infosys customers community ecosystem	Providing Strong Competitive Advantage
Marketing Expertise within Infosys	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 Infosys are often matched by competitors	Yes, Infosys is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Position among Retailers and Wholesalers – Infosys retail strategy	Yes, Infosys has strong relationship with retailers and wholesalers	Yes, Infosys has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Alignment of Activities with Infosys 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
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Infosys dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Opportunities for Brand Extensions for Infosys 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
Product Portfolio and Synergy among Various Product Lines of Infosys	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
Access to Cheap Capital for Infosys	Yes, as a leading player in the industry and current macro economic conditions, Infosys has access to cheap capital	No	Can be imitated by the competitors of Infosys	Not been totally exploited	Not significant in creating competitive advantage
Track Record of Leadership Team at Infosys	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage

Infosys 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