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BB&T 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 BB&T Corp. to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for BB&T Corp.? Defining Valuable in VRIO
A resource or capability is considered valuable for BB&T Corp. , if it allows the
BB&T 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 BB&T Corp. to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for BB&T Corp..
What are Rare Resources for BB&T Corp.? Defining Rare in VRIO
In an industry that BB&T Corp. operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. BB&T Corp. require rare resources to compete in the industry. If BB&T Corp. don’t have rare resources that are required to succeed in the industry then BB&T Corp. won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide BB&T 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 BB&T Corp.? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to BB&T 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. BB&T 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 BB&T Corp.
What is a Organization for BB&T Corp.? Defining Organization in VRIO
Even if the BB&T 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 BB&T 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 |
---|---|---|---|---|---|
BB&T 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 BB&T Corp. | BB&T Corp. is leveraging the customer loyalty to good effect | Provide BB&T Corp. medium term competitive advantage |
Access to Cheap Capital for BB&T Corp. | Yes, as a leading player in the industry and current macro economic conditions, BB&T Corp. has access to cheap capital | No | Can be imitated by the competitors of BB&T Corp. | Not been totally exploited | Not significant in creating competitive advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of BB&T Corp. | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that BB&T Corp. operates in | No, none of the competitors so far has able to imitate this expertise | Yes, BB&T Corp. is successful at it | Providing Strong Competitive Advantage |
Global and Local Presence of BB&T Corp. | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of BB&T Corp. but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Track Record of Leadership Team at BB&T Corp. | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of BB&T 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 |
Opportunities for Brand Extensions for BB&T 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 |
Pricing Strategies of BB&T Corp. | Yes, BB&T Corp. has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide BB&T Corp. with a Temporary Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with BB&T Corp. dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for BB&T Corp. to thwart competition | Yes, IPR and other rights are rare and competition of BB&T Corp. 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 |
Brand awareness of BB&T Corp. products and services | Yes, the brand awareness of BB&T Corp. products are high | Yes, BB&T Corp. has one of the leading brand in the industry | No | BB&T Corp. has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Opportunities in the Adjacent Industries that BB&T Corp. 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 |
Financial Resources of BB&T Corp. | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | BB&T Corp. has reasonably sound financial position | BB&T Corp. has relatively sustainable Competitive Advantage |
BB&T 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
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