PNC Financial Services Group 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 PNC Financial Services Group to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for PNC Financial Services Group? Defining Valuable in VRIO

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

What are Rare Resources for PNC Financial Services Group? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for PNC Financial Services Group? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to PNC Financial Services Group 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. PNC Financial Services Group 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 PNC Financial Services Group

What is a Organization for PNC Financial Services Group? Defining Organization in VRIO

Even if the PNC Financial Services Group 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 PNC Financial Services Group 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
Distribution and Logistics Costs Competitiveness	Yes, as it helps PNC Financial Services Group in delivering lower costs	No	Can be imitated by competitors of PNC Financial Services Group but it is difficult	Yes	Medium to Long Term Competitive Advantage
Financial Resources of PNC Financial Services Group	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	PNC Financial Services Group has reasonably sound financial position	PNC Financial Services Group has relatively sustainable Competitive Advantage
Track Record of Leadership Team at PNC Financial Services Group	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Position among Retailers and Wholesalers – PNC Financial Services Group retail strategy	Yes, PNC Financial Services Group has strong relationship with retailers and wholesalers	Yes, PNC Financial Services Group has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Opportunities in the Adjacent Industries that PNC Financial Services Group 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
Product Portfolio and Synergy among Various Product Lines of PNC Financial Services Group	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
Global and Local Presence of PNC Financial Services Group	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of PNC Financial Services Group but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
PNC Financial Services Group 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 PNC Financial Services Group	PNC Financial Services Group is leveraging the customer loyalty to good effect	Provide PNC Financial Services Group medium term competitive advantage
Access to Cheap Capital for PNC Financial Services Group	Yes, as a leading player in the industry and current macro economic conditions, PNC Financial Services Group has access to cheap capital	No	Can be imitated by the competitors of PNC Financial Services Group	Not been totally exploited	Not significant in creating competitive advantage
Sales Force and Channel Management of PNC Financial Services Group	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide PNC Financial Services Group sustainable competitive advantage. Potential is certainly there.
Marketing Expertise within PNC Financial Services Group	Yes, firms are competing based on differentiation in the industry	No, as most of the competitors also have good marketing departments and expertise	Pricing strategies of PNC Financial Services Group are often matched by competitors	Yes, PNC Financial Services Group is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Customer Community of PNC Financial Services Group	Yes, as customers are co-creating products	Yes, the PNC Financial Services Group has able to build a special relationship with its customers	It is very difficult for PNC Financial Services Group competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on PNC Financial Services Group customers community ecosystem	Providing Strong Competitive Advantage
Alignment of Activities with PNC Financial Services Group 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

PNC Financial Services Group SWOT Analysis, SWOT Matrix, Weighted SWOT Case Study Solution & Analysis

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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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