Global Payments 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 Global Payments to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Global Payments? Defining Valuable in VRIO

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

What are Rare Resources for Global Payments? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Global Payments? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Global Payments 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. Global Payments 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 Global Payments

What is a Organization for Global Payments? Defining Organization in VRIO

Even if the Global Payments 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 Global Payments 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
Position among Retailers and Wholesalers – Global Payments retail strategy	Yes, Global Payments has strong relationship with retailers and wholesalers	Yes, Global Payments has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Global and Local Presence of Global Payments	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Global Payments but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Successful Implementation of Digital Strategy at Global Payments	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
Opportunities in the Adjacent Industries that Global Payments 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
Financial Resources of Global Payments	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Global Payments has reasonably sound financial position	Global Payments has relatively sustainable Competitive Advantage
Supply Chain Network Flexibility of Global Payments	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Global Payments organizational structure and capabilities	Keeps the business running
Access to Cheap Capital for Global Payments	Yes, as a leading player in the industry and current macro economic conditions, Global Payments has access to cheap capital	No	Can be imitated by the competitors of Global Payments	Not been totally exploited	Not significant in creating competitive advantage
Marketing Expertise within Global Payments	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 Global Payments are often matched by competitors	Yes, Global Payments is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Sales Force and Channel Management of Global Payments	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Global Payments sustainable competitive advantage. Potential is certainly there.
Customer Community of Global Payments	Yes, as customers are co-creating products	Yes, the Global Payments has able to build a special relationship with its customers	It is very difficult for Global Payments competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Global Payments customers community ecosystem	Providing Strong Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps Global Payments in delivering lower costs	No	Can be imitated by competitors of Global Payments but it is difficult	Yes	Medium to Long Term Competitive Advantage
Opportunities in the E-Commerce Space for Global Payments - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Global Payments 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
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Global Payments operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Global Payments is successful at it	Providing Strong Competitive Advantage
Global Payments 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 Global Payments	Global Payments is leveraging the customer loyalty to good effect	Provide Global Payments medium term competitive advantage

Global Payments 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