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

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What is a Valuable Resource for Ingram Micro? Defining Valuable in VRIO

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

What are Rare Resources for Ingram Micro? Defining Rare in VRIO

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

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

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

What is a Organization for Ingram Micro? Defining Organization in VRIO

Even if the Ingram Micro 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 Ingram Micro 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
Financial Resources of Ingram Micro	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Ingram Micro has reasonably sound financial position	Ingram Micro has relatively sustainable Competitive Advantage
Brand awareness of Ingram Micro products and services	Yes, the brand awareness of Ingram Micro products are high	Yes, Ingram Micro has one of the leading brand in the industry	No	Ingram Micro has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Opportunities in the E-Commerce Space for Ingram Micro - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Ingram Micro 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
Supply Chain Network Flexibility of Ingram Micro	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Ingram Micro organizational structure and capabilities	Keeps the business running
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Ingram Micro operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Ingram Micro is successful at it	Providing Strong Competitive Advantage
Ability to Attract Talent in Various Local & Global Markets	Yes, Ingram Micro 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 Ingram Micro	To a large extent yes	Providing Strong Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Opportunities for Brand Extensions for Ingram Micro 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
Sales Force and Channel Management of Ingram Micro	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Ingram Micro sustainable competitive advantage. Potential is certainly there.
Access to Cheap Capital for Ingram Micro	Yes, as a leading player in the industry and current macro economic conditions, Ingram Micro has access to cheap capital	No	Can be imitated by the competitors of Ingram Micro	Not been totally exploited	Not significant in creating competitive advantage
Position among Retailers and Wholesalers – Ingram Micro retail strategy	Yes, Ingram Micro has strong relationship with retailers and wholesalers	Yes, Ingram Micro has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Pricing Strategies of Ingram Micro	Yes, Ingram Micro has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Ingram Micro with a Temporary Competitive Advantage
Customer Community of Ingram Micro	Yes, as customers are co-creating products	Yes, the Ingram Micro has able to build a special relationship with its customers	It is very difficult for Ingram Micro competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Ingram Micro customers community ecosystem	Providing Strong Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Ingram Micro	Not based on information provided in the case	Can Lead to Strong Competitive Advantage

Ingram Micro 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