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

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

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

What are Rare Resources for NiSource? Defining Rare in VRIO

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

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

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

What is a Organization for NiSource? Defining Organization in VRIO

Even if the NiSource 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 NiSource 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
Global and Local Presence of NiSource	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of NiSource but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with NiSource dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Marketing Expertise within NiSource	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 NiSource are often matched by competitors	Yes, NiSource is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Opportunities in the E-Commerce Space for NiSource - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and NiSource 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
Product Portfolio and Synergy among Various Product Lines of NiSource	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
Successful Implementation of Digital Strategy at NiSource	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
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for NiSource to thwart competition	Yes, IPR and other rights are rare and competition of NiSource 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
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Alignment of Activities with NiSource 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
Distribution and Logistics Costs Competitiveness	Yes, as it helps NiSource in delivering lower costs	No	Can be imitated by competitors of NiSource but it is difficult	Yes	Medium to Long Term Competitive Advantage
Brand Positioning of NiSource 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
Pricing Strategies of NiSource	Yes, NiSource has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide NiSource with a Temporary Competitive Advantage
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that NiSource operates in	No, none of the competitors so far has able to imitate this expertise	Yes, NiSource is successful at it	Providing Strong Competitive Advantage
Position among Retailers and Wholesalers – NiSource retail strategy	Yes, NiSource has strong relationship with retailers and wholesalers	Yes, NiSource has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage

NiSource 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