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

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What is a Valuable Resource for ABM Industries? Defining Valuable in VRIO

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

What are Rare Resources for ABM Industries? Defining Rare in VRIO

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

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

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

What is a Organization for ABM Industries? Defining Organization in VRIO

Even if the ABM Industries 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 ABM Industries 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 ABM Industries	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of ABM Industries but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Brand awareness of ABM Industries products and services	Yes, the brand awareness of ABM Industries products are high	Yes, ABM Industries has one of the leading brand in the industry	No	ABM Industries has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Opportunities for Brand Extensions for ABM Industries 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
Pricing Strategies of ABM Industries	Yes, ABM Industries has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide ABM Industries with a Temporary Competitive Advantage
Opportunities in the E-Commerce Space for ABM Industries - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and ABM Industries 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
Ability to Attract Talent in Various Local & Global Markets	Yes, ABM Industries 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 ABM Industries	To a large extent yes	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 ABM Industries operates in	No, none of the competitors so far has able to imitate this expertise	Yes, ABM Industries is successful at it	Providing Strong Competitive Advantage
Track Record of Leadership Team at ABM Industries	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Marketing Expertise within ABM Industries	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 ABM Industries are often matched by competitors	Yes, ABM Industries is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of ABM Industries	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Successful Implementation of Digital Strategy at ABM Industries	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
Financial Resources of ABM Industries	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	ABM Industries has reasonably sound financial position	ABM Industries has relatively sustainable Competitive Advantage
ABM Industries 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 ABM Industries	ABM Industries is leveraging the customer loyalty to good effect	Provide ABM Industries medium term competitive advantage
Brand Positioning of ABM Industries 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

ABM Industries 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