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Fiserv 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 Fiserv to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Fiserv? Defining Valuable in VRIO
A resource or capability is considered valuable for Fiserv , if it allows the
Fiserv to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Fiserv to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Fiserv.
What are Rare Resources for Fiserv? Defining Rare in VRIO
In an industry that Fiserv operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Fiserv require rare resources to compete in the industry. If Fiserv don’t have rare resources that are required to succeed in the industry then Fiserv won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Fiserv competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Fiserv? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Fiserv 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. Fiserv 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 Fiserv
What is a Organization for Fiserv? Defining Organization in VRIO
Even if the Fiserv 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 Fiserv 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 |
---|---|---|---|---|---|
Successful Implementation of Digital Strategy at Fiserv | 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 |
Pricing Strategies of Fiserv | Yes, Fiserv has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Fiserv with a Temporary Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Fiserv in delivering lower costs | No | Can be imitated by competitors of Fiserv but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Global and Local Presence of Fiserv | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Fiserv 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 Fiserv operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Fiserv is successful at it | Providing Strong Competitive Advantage |
Brand awareness of Fiserv products and services | Yes, the brand awareness of Fiserv products are high | Yes, Fiserv has one of the leading brand in the industry | No | Fiserv has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Financial Resources of Fiserv | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Fiserv has reasonably sound financial position | Fiserv has relatively sustainable Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Fiserv | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Fiserv dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Fiserv 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 Fiserv | To a large extent yes | Providing Strong Competitive Advantage |
Sales Force and Channel Management of Fiserv | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Fiserv sustainable competitive advantage. Potential is certainly there. |
Product Portfolio and Synergy among Various Product Lines of Fiserv | 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 |
Track Record of Leadership Team at Fiserv | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Supply Chain Network Flexibility of Fiserv | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Fiserv organizational structure and capabilities | Keeps the business running |
Fiserv 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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