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

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

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

What are Rare Resources for GameStop? Defining Rare in VRIO

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

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

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

What is a Organization for GameStop? Defining Organization in VRIO

Even if the GameStop 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 GameStop 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 awareness of GameStop products and services	Yes, the brand awareness of GameStop products are high	Yes, GameStop has one of the leading brand in the industry	No	GameStop has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that GameStop operates in	No, none of the competitors so far has able to imitate this expertise	Yes, GameStop is successful at it	Providing Strong Competitive Advantage
Marketing Expertise within GameStop	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 GameStop are often matched by competitors	Yes, GameStop is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Pricing Strategies of GameStop	Yes, GameStop has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide GameStop with a Temporary Competitive Advantage
Successful Implementation of Digital Strategy at GameStop	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
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of GameStop	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps GameStop in delivering lower costs	No	Can be imitated by competitors of GameStop but it is difficult	Yes	Medium to Long Term Competitive Advantage
GameStop 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 GameStop	GameStop is leveraging the customer loyalty to good effect	Provide GameStop medium term competitive advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for GameStop to thwart competition	Yes, IPR and other rights are rare and competition of GameStop 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
Opportunities in the E-Commerce Space for GameStop - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and GameStop 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
Sales Force and Channel Management of GameStop	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide GameStop sustainable competitive advantage. Potential is certainly there.
Product Portfolio and Synergy among Various Product Lines of GameStop	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
Access to Cheap Capital for GameStop	Yes, as a leading player in the industry and current macro economic conditions, GameStop has access to cheap capital	No	Can be imitated by the competitors of GameStop	Not been totally exploited	Not significant in creating competitive advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor

GameStop 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