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

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What is a Valuable Resource for Computer Sciences? Defining Valuable in VRIO

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

What are Rare Resources for Computer Sciences? Defining Rare in VRIO

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

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

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

What is a Organization for Computer Sciences? Defining Organization in VRIO

Even if the Computer Sciences 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 Computer Sciences 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
Brand Positioning of Computer Sciences 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
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Computer Sciences dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Financial Resources of Computer Sciences	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Computer Sciences has reasonably sound financial position	Computer Sciences has relatively sustainable Competitive Advantage
Customer Community of Computer Sciences	Yes, as customers are co-creating products	Yes, the Computer Sciences has able to build a special relationship with its customers	It is very difficult for Computer Sciences competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Computer Sciences customers community ecosystem	Providing Strong Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps Computer Sciences in delivering lower costs	No	Can be imitated by competitors of Computer Sciences but it is difficult	Yes	Medium to Long Term Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Computer Sciences	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Supply Chain Network Flexibility of Computer Sciences	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Computer Sciences organizational structure and capabilities	Keeps the business running
Access to Cheap Capital for Computer Sciences	Yes, as a leading player in the industry and current macro economic conditions, Computer Sciences has access to cheap capital	No	Can be imitated by the competitors of Computer Sciences	Not been totally exploited	Not significant in creating competitive advantage
Sales Force and Channel Management of Computer Sciences	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Computer Sciences sustainable competitive advantage. Potential is certainly there.
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Computer Sciences operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Computer Sciences is successful at it	Providing Strong Competitive Advantage
Alignment of Activities with Computer Sciences 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
Computer Sciences 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 Computer Sciences	Computer Sciences is leveraging the customer loyalty to good effect	Provide Computer Sciences medium term competitive advantage
Pricing Strategies of Computer Sciences	Yes, Computer Sciences has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Computer Sciences with a Temporary Competitive Advantage

Computer Sciences 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