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

Order a ABN Amro VRIO / VRIN Analysis now

What is a Valuable Resource for ABN Amro? Defining Valuable in VRIO

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

What are Rare Resources for ABN Amro? Defining Rare in VRIO

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

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

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

What is a Organization for ABN Amro? Defining Organization in VRIO

Even if the ABN Amro 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 ABN Amro 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
Position among Retailers and Wholesalers – ABN Amro retail strategy	Yes, ABN Amro has strong relationship with retailers and wholesalers	Yes, ABN Amro has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Access to Cheap Capital for ABN Amro	Yes, as a leading player in the industry and current macro economic conditions, ABN Amro has access to cheap capital	No	Can be imitated by the competitors of ABN Amro	Not been totally exploited	Not significant in creating competitive advantage
Sales Force and Channel Management of ABN Amro	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide ABN Amro sustainable competitive advantage. Potential is certainly there.
Global and Local Presence of ABN Amro	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of ABN Amro but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Opportunities for Brand Extensions for ABN Amro 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
Track Record of Leadership Team at ABN Amro	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Ability to Attract Talent in Various Local & Global Markets	Yes, ABN Amro 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 ABN Amro	To a large extent yes	Providing Strong Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of ABN Amro	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Pricing Strategies of ABN Amro	Yes, ABN Amro has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide ABN Amro with a Temporary Competitive Advantage
Supply Chain Network Flexibility of ABN Amro	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by ABN Amro organizational structure and capabilities	Keeps the business running
Alignment of Activities with ABN Amro 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
Brand Positioning of ABN Amro 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
Brand awareness of ABN Amro products and services	Yes, the brand awareness of ABN Amro products are high	Yes, ABN Amro has one of the leading brand in the industry	No	ABN Amro has utilized its leading brand position in various segments	Sustainable Competitive Advantage

ABN Amro 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