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Synnex 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 Synnex to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Synnex? Defining Valuable in VRIO
A resource or capability is considered valuable for Synnex , if it allows the
Synnex to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Synnex to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Synnex.
What are Rare Resources for Synnex? Defining Rare in VRIO
In an industry that Synnex operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Synnex require rare resources to compete in the industry. If Synnex don’t have rare resources that are required to succeed in the industry then Synnex won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Synnex competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Synnex? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Synnex 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. Synnex 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 Synnex
What is a Organization for Synnex? Defining Organization in VRIO
Even if the Synnex 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 Synnex 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 Synnex | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Synnex organizational structure and capabilities | Keeps the business running |
Global and Local Presence of Synnex | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Synnex but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Marketing Expertise within Synnex | 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 Synnex are often matched by competitors | Yes, Synnex is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Synnex operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Synnex is successful at it | Providing Strong Competitive Advantage |
Brand Positioning of Synnex 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 |
Successful Implementation of Digital Strategy at Synnex | Yes, without a comprehensive digital strategy it is extremely difficult to compete | No, as most of the firms are investing into digitalizing operations | Can be imitated by competitors | One of the leading player in the industry | Digital strategy has become critical in the industry but it can't provide sustainable competitive advantage to |
Ability to Attract Talent in Various Local & Global Markets | Yes, Synnex 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 Synnex | To a large extent yes | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – Synnex retail strategy | Yes, Synnex has strong relationship with retailers and wholesalers | Yes, Synnex has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Sales Force and Channel Management of Synnex | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Synnex sustainable competitive advantage. Potential is certainly there. |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Synnex | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Opportunities in the E-Commerce Space for Synnex - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Synnex 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 Cheap Capital for Synnex | Yes, as a leading player in the industry and current macro economic conditions, Synnex has access to cheap capital | No | Can be imitated by the competitors of Synnex | Not been totally exploited | Not significant in creating competitive advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Synnex in delivering lower costs | No | Can be imitated by competitors of Synnex but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of Synnex | 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 |
Synnex 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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