State Street Corp. 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 State Street Corp. to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for State Street Corp.? Defining Valuable in VRIO

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

What are Rare Resources for State Street Corp.? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for State Street Corp.? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to State Street Corp. 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. State Street Corp. 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 State Street Corp.

What is a Organization for State Street Corp.? Defining Organization in VRIO

Even if the State Street Corp. 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 State Street Corp. 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
Financial Resources of State Street Corp.	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	State Street Corp. has reasonably sound financial position	State Street Corp. has relatively sustainable Competitive Advantage
Opportunities for Brand Extensions for State Street Corp. 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
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Position among Retailers and Wholesalers – State Street Corp. retail strategy	Yes, State Street Corp. has strong relationship with retailers and wholesalers	Yes, State Street Corp. has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of State Street Corp.	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
State Street Corp. 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 State Street Corp.	State Street Corp. is leveraging the customer loyalty to good effect	Provide State Street Corp. medium term competitive advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with State Street Corp. dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Alignment of Activities with State Street Corp. 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
Brand awareness of State Street Corp. products and services	Yes, the brand awareness of State Street Corp. products are high	Yes, State Street Corp. has one of the leading brand in the industry	No	State Street Corp. has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Brand Positioning of State Street Corp. 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
Product Portfolio and Synergy among Various Product Lines of State Street Corp.	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
Sales Force and Channel Management of State Street Corp.	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide State Street Corp. 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 State Street Corp. operates in	No, none of the competitors so far has able to imitate this expertise	Yes, State Street Corp. is successful at it	Providing Strong Competitive Advantage
Opportunities in the E-Commerce Space for State Street Corp. - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and State Street Corp. 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

State Street Corp. 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