Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
Diebold Nixdorf 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 Diebold Nixdorf to do better resource allocation and build a defensible value and supply chain.
Order a Diebold Nixdorf VRIO / VRIN Analysis now
What is a Valuable Resource for Diebold Nixdorf? Defining Valuable in VRIO
A resource or capability is considered valuable for Diebold Nixdorf , if it allows the
Diebold Nixdorf to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Diebold Nixdorf to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Diebold Nixdorf.
What are Rare Resources for Diebold Nixdorf? Defining Rare in VRIO
In an industry that Diebold Nixdorf operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Diebold Nixdorf require rare resources to compete in the industry. If Diebold Nixdorf don’t have rare resources that are required to succeed in the industry then Diebold Nixdorf won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Diebold Nixdorf competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Diebold Nixdorf? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Diebold Nixdorf 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. Diebold Nixdorf 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 Diebold Nixdorf
What is a Organization for Diebold Nixdorf? Defining Organization in VRIO
Even if the Diebold Nixdorf 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 Diebold Nixdorf 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 Adjacent Industries that Diebold Nixdorf 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 |
Sales Force and Channel Management of Diebold Nixdorf | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Diebold Nixdorf sustainable competitive advantage. Potential is certainly there. |
Brand awareness of Diebold Nixdorf products and services | Yes, the brand awareness of Diebold Nixdorf products are high | Yes, Diebold Nixdorf has one of the leading brand in the industry | No | Diebold Nixdorf has utilized its leading brand position in various segments | 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 Diebold Nixdorf operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Diebold Nixdorf is successful at it | Providing Strong Competitive Advantage |
Marketing Expertise within Diebold Nixdorf | 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 Diebold Nixdorf are often matched by competitors | Yes, Diebold Nixdorf is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Global and Local Presence of Diebold Nixdorf | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Diebold Nixdorf but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Alignment of Activities with Diebold Nixdorf 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 |
Supply Chain Network Flexibility of Diebold Nixdorf | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Diebold Nixdorf organizational structure and capabilities | Keeps the business running |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Diebold Nixdorf | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Financial Resources of Diebold Nixdorf | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Diebold Nixdorf has reasonably sound financial position | Diebold Nixdorf has relatively sustainable Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Diebold Nixdorf in delivering lower costs | No | Can be imitated by competitors of Diebold Nixdorf but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Access to Cheap Capital for Diebold Nixdorf | Yes, as a leading player in the industry and current macro economic conditions, Diebold Nixdorf has access to cheap capital | No | Can be imitated by the competitors of Diebold Nixdorf | Not been totally exploited | Not significant in creating competitive advantage |
Pricing Strategies of Diebold Nixdorf | Yes, Diebold Nixdorf has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Diebold Nixdorf with a Temporary Competitive Advantage |
Diebold Nixdorf 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 Diebold Nixdorf | Diebold Nixdorf is leveraging the customer loyalty to good effect | Provide Diebold Nixdorf medium term competitive advantage |
Diebold Nixdorf 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
Order Now
Previous VRIO / VRIN Analysis
- Global Payments VRIO / VRIN Analysis
- Total System Services VRIO / VRIN Analysis
- Mednax VRIO / VRIN Analysis
- KapStone Paper & Packaging VRIO / VRIN Analysis
- Bon-Ton Stores VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- Scientific Games VRIO / VRIN Analysis
- Applied Industrial Technologies VRIO / VRIN Analysis
- Equity Residential VRIO / VRIN Analysis
- Crane VRIO / VRIN Analysis
- Paychex VRIO / VRIN Analysis