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

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What is a Valuable Resource for VeriFone Systems? Defining Valuable in VRIO

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

What are Rare Resources for VeriFone Systems? Defining Rare in VRIO

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

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

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

What is a Organization for VeriFone Systems? Defining Organization in VRIO

Even if the VeriFone Systems 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 VeriFone Systems 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
VeriFone Systems 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 VeriFone Systems	VeriFone Systems is leveraging the customer loyalty to good effect	Provide VeriFone Systems medium term competitive advantage
Sales Force and Channel Management of VeriFone Systems	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide VeriFone Systems sustainable competitive advantage. Potential is certainly there.
Brand awareness of VeriFone Systems products and services	Yes, the brand awareness of VeriFone Systems products are high	Yes, VeriFone Systems has one of the leading brand in the industry	No	VeriFone Systems has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Brand Positioning of VeriFone Systems 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
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with VeriFone Systems dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Access to Cheap Capital for VeriFone Systems	Yes, as a leading player in the industry and current macro economic conditions, VeriFone Systems has access to cheap capital	No	Can be imitated by the competitors of VeriFone Systems	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
Marketing Expertise within VeriFone Systems	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 VeriFone Systems are often matched by competitors	Yes, VeriFone Systems is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Ability to Attract Talent in Various Local & Global Markets	Yes, VeriFone Systems 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 VeriFone Systems	To a large extent yes	Providing Strong Competitive Advantage
Customer Community of VeriFone Systems	Yes, as customers are co-creating products	Yes, the VeriFone Systems has able to build a special relationship with its customers	It is very difficult for VeriFone Systems competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on VeriFone Systems customers community ecosystem	Providing Strong Competitive Advantage
Product Portfolio and Synergy among Various Product Lines of VeriFone Systems	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
Supply Chain Network Flexibility of VeriFone Systems	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by VeriFone Systems organizational structure and capabilities	Keeps the business running
Position among Retailers and Wholesalers – VeriFone Systems retail strategy	Yes, VeriFone Systems has strong relationship with retailers and wholesalers	Yes, VeriFone Systems 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 Adjacent Industries that VeriFone Systems 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

VeriFone Systems 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