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

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What is a Valuable Resource for INTL FCStone? Defining Valuable in VRIO

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

What are Rare Resources for INTL FCStone? Defining Rare in VRIO

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

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

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

What is a Organization for INTL FCStone? Defining Organization in VRIO

Even if the INTL FCStone 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 INTL FCStone 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 – INTL FCStone retail strategy	Yes, INTL FCStone has strong relationship with retailers and wholesalers	Yes, INTL FCStone has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Opportunities in the E-Commerce Space for INTL FCStone - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and INTL FCStone 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
Opportunities for Brand Extensions for INTL FCStone 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
Brand awareness of INTL FCStone products and services	Yes, the brand awareness of INTL FCStone products are high	Yes, INTL FCStone has one of the leading brand in the industry	No	INTL FCStone has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Product Portfolio and Synergy among Various Product Lines of INTL FCStone	Yes, it is valuable in the industry given the various segmentations & consumer preferences.	Most of the competitors are trying to enter the lucrative segments	Can be imitated by the competitors	The firm has used it to good effect, details can be found in case exhibit	Provide short term competitive advantage but requires constant innovation to sustain
Global and Local Presence of INTL FCStone	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of INTL FCStone but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Marketing Expertise within INTL FCStone	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 INTL FCStone are often matched by competitors	Yes, INTL FCStone is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that INTL FCStone operates in	No, none of the competitors so far has able to imitate this expertise	Yes, INTL FCStone is successful at it	Providing Strong Competitive Advantage
Ability to Attract Talent in Various Local & Global Markets	Yes, INTL FCStone 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 INTL FCStone	To a large extent yes	Providing Strong Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of INTL FCStone	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Alignment of Activities with INTL FCStone 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
INTL FCStone 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 INTL FCStone	INTL FCStone is leveraging the customer loyalty to good effect	Provide INTL FCStone medium term competitive advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps INTL FCStone in delivering lower costs	No	Can be imitated by competitors of INTL FCStone but it is difficult	Yes	Medium to Long Term Competitive Advantage
Access to Cheap Capital for INTL FCStone	Yes, as a leading player in the industry and current macro economic conditions, INTL FCStone has access to cheap capital	No	Can be imitated by the competitors of INTL FCStone	Not been totally exploited	Not significant in creating competitive advantage

INTL FCStone 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