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Royal Bank of Scotland 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 Royal Bank of Scotland to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Royal Bank of Scotland? Defining Valuable in VRIO
A resource or capability is considered valuable for Royal Bank of Scotland , if it allows the
Royal Bank of Scotland to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Royal Bank of Scotland to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Royal Bank of Scotland.
What are Rare Resources for Royal Bank of Scotland? Defining Rare in VRIO
In an industry that Royal Bank of Scotland operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Royal Bank of Scotland require rare resources to compete in the industry. If Royal Bank of Scotland don’t have rare resources that are required to succeed in the industry then Royal Bank of Scotland won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Royal Bank of Scotland competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Royal Bank of Scotland? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Royal Bank of Scotland 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. Royal Bank of Scotland 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 Royal Bank of Scotland
What is a Organization for Royal Bank of Scotland? Defining Organization in VRIO
Even if the Royal Bank of Scotland 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 Royal Bank of Scotland 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 Royal Bank of Scotland | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Royal Bank of Scotland organizational structure and capabilities | Keeps the business running |
Track Record of Leadership Team at Royal Bank of Scotland | Yes | Yes | Can't be imitated by competitors | Yes | Providing 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 Royal Bank of Scotland operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Royal Bank of Scotland is successful at it | Providing Strong Competitive Advantage |
Brand Positioning of Royal Bank of Scotland 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 |
Position among Retailers and Wholesalers – Royal Bank of Scotland retail strategy | Yes, Royal Bank of Scotland has strong relationship with retailers and wholesalers | Yes, Royal Bank of Scotland has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Access to Cheap Capital for Royal Bank of Scotland | Yes, as a leading player in the industry and current macro economic conditions, Royal Bank of Scotland has access to cheap capital | No | Can be imitated by the competitors of Royal Bank of Scotland | Not been totally exploited | Not significant in creating competitive advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Opportunities in the Adjacent Industries that Royal Bank of Scotland 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 |
Opportunities for Brand Extensions for Royal Bank of Scotland 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 |
Brand awareness of Royal Bank of Scotland products and services | Yes, the brand awareness of Royal Bank of Scotland products are high | Yes, Royal Bank of Scotland has one of the leading brand in the industry | No | Royal Bank of Scotland has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Financial Resources of Royal Bank of Scotland | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Royal Bank of Scotland has reasonably sound financial position | Royal Bank of Scotland has relatively sustainable Competitive Advantage |
Sales Force and Channel Management of Royal Bank of Scotland | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Royal Bank of Scotland sustainable competitive advantage. Potential is certainly there. |
Alignment of Activities with Royal Bank of Scotland 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 |
Opportunities in the E-Commerce Space for Royal Bank of Scotland - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Royal Bank of Scotland 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 |
Royal Bank of Scotland 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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