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Telephone & Data Systems 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 Telephone & Data Systems to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Telephone & Data Systems? Defining Valuable in VRIO
A resource or capability is considered valuable for Telephone & Data Systems , if it allows the
Telephone & Data Systems to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Telephone & Data Systems to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Telephone & Data Systems.
What are Rare Resources for Telephone & Data Systems? Defining Rare in VRIO
In an industry that Telephone & Data Systems operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Telephone & Data Systems require rare resources to compete in the industry. If Telephone & Data Systems don’t have rare resources that are required to succeed in the industry then Telephone & Data Systems won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Telephone & Data Systems competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Telephone & Data Systems? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Telephone & Data Systems 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. Telephone & Data Systems 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 Telephone & Data Systems
What is a Organization for Telephone & Data Systems? Defining Organization in VRIO
Even if the Telephone & Data Systems 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 Telephone & Data Systems 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 |
---|---|---|---|---|---|
Opportunities in the E-Commerce Space for Telephone & Data Systems - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Telephone & Data Systems 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 |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Product Portfolio and Synergy among Various Product Lines of Telephone & Data Systems | 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 |
Opportunities for Brand Extensions for Telephone & Data Systems 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 |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Telephone & Data Systems operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Telephone & Data Systems is successful at it | Providing Strong Competitive Advantage |
Brand awareness of Telephone & Data Systems products and services | Yes, the brand awareness of Telephone & Data Systems products are high | Yes, Telephone & Data Systems has one of the leading brand in the industry | No | Telephone & Data Systems has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Access to Cheap Capital for Telephone & Data Systems | Yes, as a leading player in the industry and current macro economic conditions, Telephone & Data Systems has access to cheap capital | No | Can be imitated by the competitors of Telephone & Data Systems | Not been totally exploited | Not significant in creating competitive advantage |
Marketing Expertise within Telephone & Data Systems | 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 Telephone & Data Systems are often matched by competitors | Yes, Telephone & Data Systems is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Opportunities in the Adjacent Industries that Telephone & Data Systems 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 |
Pricing Strategies of Telephone & Data Systems | Yes, Telephone & Data Systems has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Telephone & Data Systems with a Temporary Competitive Advantage |
Sales Force and Channel Management of Telephone & Data Systems | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Telephone & Data Systems sustainable competitive advantage. Potential is certainly there. |
Global and Local Presence of Telephone & Data Systems | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Telephone & Data Systems 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 Leadership Team at Telephone & Data Systems | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Telephone & Data Systems to thwart competition | Yes, IPR and other rights are rare and competition of Telephone & Data Systems 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 |
Telephone & Data Systems 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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