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

Order a Visa VRIO / VRIN Analysis now

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

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

What are Rare Resources for Visa? Defining Rare in VRIO

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

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

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

What is a Organization for Visa? Defining Organization in VRIO

Even if the Visa 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 Visa 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
Track Record of Leadership Team at Visa	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Visa to thwart competition	Yes, IPR and other rights are rare and competition of Visa 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
Sales Force and Channel Management of Visa	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Visa sustainable competitive advantage. Potential is certainly there.
Global and Local Presence of Visa	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Visa but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Supply Chain Network Flexibility of Visa	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Visa organizational structure and capabilities	Keeps the business running
Ability to Attract Talent in Various Local & Global Markets	Yes, Visa 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 Visa	To a large extent yes	Providing Strong Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps Visa in delivering lower costs	No	Can be imitated by competitors of Visa but it is difficult	Yes	Medium to Long Term Competitive Advantage
Position among Retailers and Wholesalers – Visa retail strategy	Yes, Visa has strong relationship with retailers and wholesalers	Yes, Visa has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Visa 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 Visa	Visa is leveraging the customer loyalty to good effect	Provide Visa medium term competitive advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Visa	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Customer Community of Visa	Yes, as customers are co-creating products	Yes, the Visa has able to build a special relationship with its customers	It is very difficult for Visa competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Visa customers community ecosystem	Providing Strong Competitive Advantage
Pricing Strategies of Visa	Yes, Visa has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Visa with a Temporary Competitive Advantage
Brand awareness of Visa products and services	Yes, the brand awareness of Visa products are high	Yes, Visa has one of the leading brand in the industry	No	Visa has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Opportunities for Brand Extensions for Visa 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

Visa 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