Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
SunTrust Banks 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 SunTrust Banks to do better resource allocation and build a defensible value and supply chain.
Order a SunTrust Banks VRIO / VRIN Analysis now
What is a Valuable Resource for SunTrust Banks? Defining Valuable in VRIO
A resource or capability is considered valuable for SunTrust Banks , if it allows the
SunTrust Banks to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow SunTrust Banks to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for SunTrust Banks.
What are Rare Resources for SunTrust Banks? Defining Rare in VRIO
In an industry that SunTrust Banks operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. SunTrust Banks require rare resources to compete in the industry. If SunTrust Banks don’t have rare resources that are required to succeed in the industry then SunTrust Banks won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide SunTrust Banks competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for SunTrust Banks? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to SunTrust Banks 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. SunTrust Banks 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 SunTrust Banks
What is a Organization for SunTrust Banks? Defining Organization in VRIO
Even if the SunTrust Banks 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 SunTrust Banks 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 |
---|---|---|---|---|---|
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for SunTrust Banks to thwart competition | Yes, IPR and other rights are rare and competition of SunTrust Banks 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 Positioning of SunTrust Banks 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 |
Alignment of Activities with SunTrust Banks 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 |
Ability to Attract Talent in Various Local & Global Markets | Yes, SunTrust Banks 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 SunTrust Banks | To a large extent yes | Providing Strong Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with SunTrust Banks dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Global and Local Presence of SunTrust Banks | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of SunTrust Banks but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Sales Force and Channel Management of SunTrust Banks | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide SunTrust Banks sustainable competitive advantage. Potential is certainly there. |
Successful Implementation of Digital Strategy at SunTrust Banks | 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 |
Opportunities in the E-Commerce Space for SunTrust Banks - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and SunTrust Banks 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 |
Track Record of Leadership Team at SunTrust Banks | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Marketing Expertise within SunTrust Banks | 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 SunTrust Banks are often matched by competitors | Yes, SunTrust Banks is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Opportunities in the Adjacent Industries that SunTrust Banks 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 |
Product Portfolio and Synergy among Various Product Lines of SunTrust Banks | 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 |
SunTrust Banks 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
MBA Admission help, MBA Assignment Help, MBA Case Study Help, Online Analytics Live Classes
Order Now
Previous VRIO / VRIN Analysis
- Jarden VRIO / VRIN Analysis
- News Corp. VRIO / VRIN Analysis
- Pacific Life VRIO / VRIN Analysis
- Laboratory Corp. of America VRIO / VRIN Analysis
- Anadarko Petroleum VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- Avis Budget Group VRIO / VRIN Analysis
- Broadcom VRIO / VRIN Analysis
- American Family Insurance Group VRIO / VRIN Analysis
- Level 3 Communications VRIO / VRIN Analysis
- Tenneco VRIO / VRIN Analysis