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

Order a Intercontinental Exchange VRIO / VRIN Analysis now

What is a Valuable Resource for Intercontinental Exchange? Defining Valuable in VRIO

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

What are Rare Resources for Intercontinental Exchange? Defining Rare in VRIO

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

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

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

What is a Organization for Intercontinental Exchange? Defining Organization in VRIO

Even if the Intercontinental Exchange 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 Intercontinental Exchange 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
Customer Community of Intercontinental Exchange	Yes, as customers are co-creating products	Yes, the Intercontinental Exchange has able to build a special relationship with its customers	It is very difficult for Intercontinental Exchange competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Intercontinental Exchange customers community ecosystem	Providing Strong Competitive Advantage
Supply Chain Network Flexibility of Intercontinental Exchange	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Intercontinental Exchange organizational structure and capabilities	Keeps the business running
Brand awareness of Intercontinental Exchange products and services	Yes, the brand awareness of Intercontinental Exchange products are high	Yes, Intercontinental Exchange has one of the leading brand in the industry	No	Intercontinental Exchange has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Intercontinental Exchange 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 Intercontinental Exchange	Intercontinental Exchange is leveraging the customer loyalty to good effect	Provide Intercontinental Exchange medium term competitive advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps Intercontinental Exchange in delivering lower costs	No	Can be imitated by competitors of Intercontinental Exchange but it is difficult	Yes	Medium to Long Term Competitive Advantage
Access to Cheap Capital for Intercontinental Exchange	Yes, as a leading player in the industry and current macro economic conditions, Intercontinental Exchange has access to cheap capital	No	Can be imitated by the competitors of Intercontinental Exchange	Not been totally exploited	Not significant in creating competitive advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Position among Retailers and Wholesalers – Intercontinental Exchange retail strategy	Yes, Intercontinental Exchange has strong relationship with retailers and wholesalers	Yes, Intercontinental Exchange has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Intercontinental Exchange to thwart competition	Yes, IPR and other rights are rare and competition of Intercontinental Exchange 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
Sales Force and Channel Management of Intercontinental Exchange	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Intercontinental Exchange sustainable competitive advantage. Potential is certainly there.
Pricing Strategies of Intercontinental Exchange	Yes, Intercontinental Exchange has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Intercontinental Exchange with a Temporary Competitive Advantage
Product Portfolio and Synergy among Various Product Lines of Intercontinental Exchange	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 Intercontinental Exchange 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 Leadership Team at Intercontinental Exchange	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage

Intercontinental Exchange 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

MBA Admission help, MBA Assignment Help, MBA Case Study Help, Online Analytics Live Classes