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Nomura 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 Nomura to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Nomura? Defining Valuable in VRIO
A resource or capability is considered valuable for Nomura , if it allows the
Nomura to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Nomura to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Nomura.
What are Rare Resources for Nomura? Defining Rare in VRIO
In an industry that Nomura operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Nomura require rare resources to compete in the industry. If Nomura don’t have rare resources that are required to succeed in the industry then Nomura won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Nomura competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Nomura? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Nomura 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. Nomura 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 Nomura
What is a Organization for Nomura? Defining Organization in VRIO
Even if the Nomura 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 Nomura 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 Nomura 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 |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Nomura dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Global and Local Presence of Nomura | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Nomura but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Access to Cheap Capital for Nomura | Yes, as a leading player in the industry and current macro economic conditions, Nomura has access to cheap capital | No | Can be imitated by the competitors of Nomura | Not been totally exploited | Not significant in creating competitive advantage |
Pricing Strategies of Nomura | Yes, Nomura has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Nomura with a Temporary Competitive Advantage |
Opportunities in the Adjacent Industries that Nomura 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 |
Ability to Attract Talent in Various Local & Global Markets | Yes, Nomura 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 Nomura | To a large extent yes | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – Nomura retail strategy | Yes, Nomura has strong relationship with retailers and wholesalers | Yes, Nomura has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Sales Force and Channel Management of Nomura | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Nomura sustainable competitive advantage. Potential is certainly there. |
Brand Positioning of Nomura 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 |
Nomura 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 Nomura | Nomura is leveraging the customer loyalty to good effect | Provide Nomura medium term competitive advantage |
Alignment of Activities with Nomura 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Nomura in delivering lower costs | No | Can be imitated by competitors of Nomura but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Brand awareness of Nomura products and services | Yes, the brand awareness of Nomura products are high | Yes, Nomura has one of the leading brand in the industry | No | Nomura has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Nomura 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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