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

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

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

What are Rare Resources for Capgemini? Defining Rare in VRIO

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

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

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

What is a Organization for Capgemini? Defining Organization in VRIO

Even if the Capgemini 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 Capgemini 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
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Capgemini	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Capgemini 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 Capgemini	Capgemini is leveraging the customer loyalty to good effect	Provide Capgemini medium term competitive advantage
Opportunities in the E-Commerce Space for Capgemini - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Capgemini 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
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Capgemini dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Capgemini operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Capgemini is successful at it	Providing Strong Competitive Advantage
Access to Cheap Capital for Capgemini	Yes, as a leading player in the industry and current macro economic conditions, Capgemini has access to cheap capital	No	Can be imitated by the competitors of Capgemini	Not been totally exploited	Not significant in creating competitive advantage
Ability to Attract Talent in Various Local & Global Markets	Yes, Capgemini 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 Capgemini	To a large extent yes	Providing Strong Competitive Advantage
Global and Local Presence of Capgemini	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Capgemini but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Customer Community of Capgemini	Yes, as customers are co-creating products	Yes, the Capgemini has able to build a special relationship with its customers	It is very difficult for Capgemini competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Capgemini customers community ecosystem	Providing Strong Competitive Advantage
Position among Retailers and Wholesalers – Capgemini retail strategy	Yes, Capgemini has strong relationship with retailers and wholesalers	Yes, Capgemini 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
Product Portfolio and Synergy among Various Product Lines of Capgemini	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
Brand awareness of Capgemini products and services	Yes, the brand awareness of Capgemini products are high	Yes, Capgemini has one of the leading brand in the industry	No	Capgemini has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Financial Resources of Capgemini	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Capgemini has reasonably sound financial position	Capgemini has relatively sustainable Competitive Advantage

Capgemini 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