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

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

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

What are Rare Resources for Broadcom? Defining Rare in VRIO

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

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

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

What is a Organization for Broadcom? Defining Organization in VRIO

Even if the Broadcom 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 Broadcom 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 Broadcom	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Broadcom has reasonably sound financial position	Broadcom has relatively sustainable Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps Broadcom in delivering lower costs	No	Can be imitated by competitors of Broadcom but it is difficult	Yes	Medium to Long Term Competitive Advantage
Position among Retailers and Wholesalers – Broadcom retail strategy	Yes, Broadcom has strong relationship with retailers and wholesalers	Yes, Broadcom has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Successful Implementation of Digital Strategy at Broadcom	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
Ability to Attract Talent in Various Local & Global Markets	Yes, Broadcom 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 Broadcom	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 Broadcom dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Alignment of Activities with Broadcom 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
Access to Cheap Capital for Broadcom	Yes, as a leading player in the industry and current macro economic conditions, Broadcom has access to cheap capital	No	Can be imitated by the competitors of Broadcom	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 Broadcom	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Global and Local Presence of Broadcom	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Broadcom 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 Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Broadcom operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Broadcom is successful at it	Providing Strong Competitive Advantage
Brand Positioning of Broadcom 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
Track Record of Leadership Team at Broadcom	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Supply Chain Network Flexibility of Broadcom	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Broadcom organizational structure and capabilities	Keeps the business running

Broadcom 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