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

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What is a Valuable Resource for Newmont Mining? Defining Valuable in VRIO

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

What are Rare Resources for Newmont Mining? Defining Rare in VRIO

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

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

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

What is a Organization for Newmont Mining? Defining Organization in VRIO

Even if the Newmont Mining 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 Newmont Mining 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 Newmont Mining to thwart competition	Yes, IPR and other rights are rare and competition of Newmont Mining 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 Newmont Mining - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Newmont Mining 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
Distribution and Logistics Costs Competitiveness	Yes, as it helps Newmont Mining in delivering lower costs	No	Can be imitated by competitors of Newmont Mining but it is difficult	Yes	Medium to Long Term Competitive Advantage
Financial Resources of Newmont Mining	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Newmont Mining has reasonably sound financial position	Newmont Mining has relatively sustainable Competitive Advantage
Pricing Strategies of Newmont Mining	Yes, Newmont Mining has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Newmont Mining with a Temporary Competitive Advantage
Customer Community of Newmont Mining	Yes, as customers are co-creating products	Yes, the Newmont Mining has able to build a special relationship with its customers	It is very difficult for Newmont Mining competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Newmont Mining customers community ecosystem	Providing Strong Competitive Advantage
Brand awareness of Newmont Mining products and services	Yes, the brand awareness of Newmont Mining products are high	Yes, Newmont Mining has one of the leading brand in the industry	No	Newmont Mining has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Product Portfolio and Synergy among Various Product Lines of Newmont Mining	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 Newmont Mining	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Newmont Mining sustainable competitive advantage. Potential is certainly there.
Successful Implementation of Digital Strategy at Newmont Mining	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
Newmont Mining 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 Newmont Mining	Newmont Mining is leveraging the customer loyalty to good effect	Provide Newmont Mining medium term competitive advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Newmont Mining dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Track Record of Leadership Team at Newmont Mining	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Opportunities for Brand Extensions for Newmont Mining 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

Newmont Mining 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