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NCR 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 NCR to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for NCR? Defining Valuable in VRIO
A resource or capability is considered valuable for NCR , if it allows the
NCR to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow NCR to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for NCR.
What are Rare Resources for NCR? Defining Rare in VRIO
In an industry that NCR operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. NCR require rare resources to compete in the industry. If NCR don’t have rare resources that are required to succeed in the industry then NCR won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide NCR competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for NCR? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to NCR 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. NCR 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 NCR
What is a Organization for NCR? Defining Organization in VRIO
Even if the NCR 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 NCR 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 |
---|---|---|---|---|---|
Sales Force and Channel Management of NCR | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide NCR sustainable competitive advantage. Potential is certainly there. |
Supply Chain Network Flexibility of NCR | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by NCR organizational structure and capabilities | Keeps the business running |
Brand Positioning of NCR 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 |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with NCR dominant market position | Can be imitated by competitors | Yes | Providing 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 NCR operates in | No, none of the competitors so far has able to imitate this expertise | Yes, NCR is successful at it | Providing Strong Competitive Advantage |
Marketing Expertise within NCR | 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 NCR are often matched by competitors | Yes, NCR is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Alignment of Activities with NCR 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 |
Global and Local Presence of NCR | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of NCR 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 |
Opportunities in the Adjacent Industries that NCR 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 |
Successful Implementation of Digital Strategy at NCR | 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 |
Access to Cheap Capital for NCR | Yes, as a leading player in the industry and current macro economic conditions, NCR has access to cheap capital | No | Can be imitated by the competitors of NCR | 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 NCR | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps NCR in delivering lower costs | No | Can be imitated by competitors of NCR but it is difficult | Yes | Medium to Long Term Competitive Advantage |
NCR 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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