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MTS (Russia) 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 MTS (Russia) to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for MTS (Russia)? Defining Valuable in VRIO
A resource or capability is considered valuable for MTS (Russia) , if it allows the
MTS (Russia) to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow MTS (Russia) to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for MTS (Russia).
What are Rare Resources for MTS (Russia)? Defining Rare in VRIO
In an industry that MTS (Russia) operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. MTS (Russia) require rare resources to compete in the industry. If MTS (Russia) don’t have rare resources that are required to succeed in the industry then MTS (Russia) won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide MTS (Russia) competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for MTS (Russia)? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to MTS (Russia) 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. MTS (Russia) 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 MTS (Russia)
What is a Organization for MTS (Russia)? Defining Organization in VRIO
Even if the MTS (Russia) 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 MTS (Russia) 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 |
---|---|---|---|---|---|
Successful Implementation of Digital Strategy at MTS (Russia) | 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 |
MTS (Russia) 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 MTS (Russia) | MTS (Russia) is leveraging the customer loyalty to good effect | Provide MTS (Russia) medium term competitive advantage |
Global and Local Presence of MTS (Russia) | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of MTS (Russia) but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for MTS (Russia) to thwart competition | Yes, IPR and other rights are rare and competition of MTS (Russia) 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 MTS (Russia) | Yes, MTS (Russia) has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide MTS (Russia) 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 MTS (Russia) | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | MTS (Russia) has reasonably sound financial position | MTS (Russia) has relatively sustainable Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps MTS (Russia) in delivering lower costs | No | Can be imitated by competitors of MTS (Russia) but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Customer Community of MTS (Russia) | Yes, as customers are co-creating products | Yes, the MTS (Russia) has able to build a special relationship with its customers | It is very difficult for MTS (Russia) competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on MTS (Russia) customers community ecosystem | Providing Strong Competitive Advantage |
Brand awareness of MTS (Russia) products and services | Yes, the brand awareness of MTS (Russia) products are high | Yes, MTS (Russia) has one of the leading brand in the industry | No | MTS (Russia) has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Opportunities in the E-Commerce Space for MTS (Russia) - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and MTS (Russia) 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 |
Supply Chain Network Flexibility of MTS (Russia) | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by MTS (Russia) organizational structure and capabilities | Keeps the business running |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with MTS (Russia) dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Sales Force and Channel Management of MTS (Russia) | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide MTS (Russia) sustainable competitive advantage. Potential is certainly there. |
MTS (Russia) 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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