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Nasdaq 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 Nasdaq to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Nasdaq? Defining Valuable in VRIO
A resource or capability is considered valuable for Nasdaq , if it allows the
Nasdaq to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Nasdaq to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Nasdaq.
What are Rare Resources for Nasdaq? Defining Rare in VRIO
In an industry that Nasdaq operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Nasdaq require rare resources to compete in the industry. If Nasdaq don’t have rare resources that are required to succeed in the industry then Nasdaq won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Nasdaq competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Nasdaq? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Nasdaq 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. Nasdaq 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 Nasdaq
What is a Organization for Nasdaq? Defining Organization in VRIO
Even if the Nasdaq 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 Nasdaq 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 |
---|---|---|---|---|---|
Alignment of Activities with Nasdaq Corporate Strategy | Yes | No | Each of the firm has its own strategy | Yes, company has organizational skills to extract the maximum out of it. | Still lots of potential to build on it |
Marketing Expertise within Nasdaq | 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 Nasdaq are often matched by competitors | Yes, Nasdaq is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Successful Implementation of Digital Strategy at Nasdaq | 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 |
Access to Cheap Capital for Nasdaq | Yes, as a leading player in the industry and current macro economic conditions, Nasdaq has access to cheap capital | No | Can be imitated by the competitors of Nasdaq | 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 |
Sales Force and Channel Management of Nasdaq | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Nasdaq sustainable competitive advantage. Potential is certainly there. |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Nasdaq to thwart competition | Yes, IPR and other rights are rare and competition of Nasdaq 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Nasdaq in delivering lower costs | No | Can be imitated by competitors of Nasdaq but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Track Record of Leadership Team at Nasdaq | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Nasdaq | Not based on information provided in the case | Can Lead to 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 Nasdaq operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Nasdaq is successful at it | Providing Strong Competitive Advantage |
Supply Chain Network Flexibility of Nasdaq | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Nasdaq organizational structure and capabilities | Keeps the business running |
Brand awareness of Nasdaq products and services | Yes, the brand awareness of Nasdaq products are high | Yes, Nasdaq has one of the leading brand in the industry | No | Nasdaq has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Nasdaq 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 Nasdaq | To a large extent yes | Providing Strong Competitive Advantage |
Nasdaq 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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