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

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What is a Valuable Resource for TIAA? Defining Valuable in VRIO

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

What are Rare Resources for TIAA? Defining Rare in VRIO

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

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

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

What is a Organization for TIAA? Defining Organization in VRIO

Even if the TIAA 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 TIAA 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
Global and Local Presence of TIAA	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of TIAA but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Financial Resources of TIAA	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	TIAA has reasonably sound financial position	TIAA has relatively sustainable Competitive Advantage
Customer Community of TIAA	Yes, as customers are co-creating products	Yes, the TIAA has able to build a special relationship with its customers	It is very difficult for TIAA competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on TIAA customers community ecosystem	Providing Strong Competitive Advantage
Position among Retailers and Wholesalers – TIAA retail strategy	Yes, TIAA has strong relationship with retailers and wholesalers	Yes, TIAA has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Brand Positioning of TIAA in Comparison to the Competitors	Yes	No	Can be imitated by competitors but it will require big marketing budget	Yes, the firm has positioned its brands based on consumer behavior	Temporary Competitive Advantage
Opportunities for Brand Extensions for TIAA 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
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with TIAA dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps TIAA in delivering lower costs	No	Can be imitated by competitors of TIAA but it is difficult	Yes	Medium to Long Term Competitive Advantage
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that TIAA operates in	No, none of the competitors so far has able to imitate this expertise	Yes, TIAA is successful at it	Providing Strong Competitive Advantage
Sales Force and Channel Management of TIAA	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide TIAA sustainable competitive advantage. Potential is certainly there.
TIAA 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 TIAA	TIAA is leveraging the customer loyalty to good effect	Provide TIAA medium term competitive advantage
Access to Cheap Capital for TIAA	Yes, as a leading player in the industry and current macro economic conditions, TIAA has access to cheap capital	No	Can be imitated by the competitors of TIAA	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
Brand awareness of TIAA products and services	Yes, the brand awareness of TIAA products are high	Yes, TIAA has one of the leading brand in the industry	No	TIAA has utilized its leading brand position in various segments	Sustainable Competitive Advantage

TIAA 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