Marriott International Vrio Analysis And Value Chain

1161 words - 5 pages

Distinctive CompetenciesThe VRIO analysis is helpful in determining if a resource or capability leads tocompetitive advantage (Middleton, 2004).Resources/Capabilities Valuable? Rare? Costly to Imitate? Exploited by Organization Competitive Implications Strength or WeaknessKey Account Management Initiative Yes Yes Yes Yes Sustained Competitive Advantage Strength and Sustainable Distinctive CompetenceRecruitment Process Yes Yes No No Temporary Competitive Advantage Strength and Distinctive CompetenceBrand Loyalty Yes Yes Yes Yes Sustained Competitive Advantage Strength and Sustainable Distinctive CompetenceCommunity Involvement Yes No No No Competitive Parity StrengthEmployee Loyalty Yes Yes Yes Yes Sustained Competitive Advantage Strength and Sustainable Distinctive CompetenceMarriott has a few distinctive competencies that are the driving force in their company. Superior efficiency is evident in their personnel. Marriott has been named by Fortune Magazine as on of the "100 Best Companies to Work For" and one of the "Top 50 Companies for Minorities" (Marriott is, 2004). They are also very concerned with minimizing employee turnover because of the high costs associated with training new employees. Their recruitment process screens out people motivated by money, and focuses on people who are motivated by recognition (Have, 1991).Superior responsiveness can be seen in their key account management incentive the company has in place. Marriott noticed that travel and entertainment expense is the third largest expense in corporations. This management incentive allows Marriott to focus on their potential customers and gain customer loyalty (Millman, 1996).One of the intangible resources that Marriott has is its reputation. Not just their reputation with customers, but also their reputation with the community. The Marriott brand is a valuable resource. It is estimated that by adding the Marriott name to Fairfield Inn increased occupancy rates by 15%. Marriott fully exploits this resource by the global expansion that Marriott has undertaken (Tepeci, 1999). As for the reputation within the community, Marriott has received the Global Services Leadership Award, because of their commitment to the community, and their excellence in strategic business use of services (Marriott Receives, 2003).Fairfield Inn, one of Marriott's subsidiaries, initiated a program to benefit Habitat for Humanity. This will include donations, sponsorships, and volunteer services. Marriott has also initiated the Spirit to Serve Our Communities Day which gives associates a chance to give back to their communities (Marriott's Fairfield, 2004).Competitive AdvantageThe VRIO analysis concluded that Marriott International has a competitive advantage in its primary industry. They have three resources that provide them with a sustained competitive advantage, and one resource with a temporary competitive advantage. It is the responsibility of every employee to generate a competitive advantage by...

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