Vrio Analysis

1021 words - 5 pages

Barney (1991) defines VRIO analysis as a strategic management tool used to analyze a firm’s internal resources and capabilities, in efforts to determine if they can be used to derive a competitive advantage for the firm. It entails asking and endeavoring to answer questions that ask if a resource is: Valuable; Rare; costly to Imitate; and whether a firm is well Organized to capture the value of the resources? Any resource that meets all four requirements can bring sustained competitive advantage for the company. The pictorial representation of the VRIO analysis tool is as shown below.

Rarity of Resources
Those resources that are accessible to one or only a limited number of firms ...view middle of the document...

Application of the VRIO Toolkit
1. Dubai Shopping Mall
The outstanding resource available to Dubai is its renowned reputation as the world’s largest shopping mall based on total area (Saxena, 2011). The amenities available within the mall include the Dubai Aquarium and Underwater Zoo, Dubai Ice Rink, Sega Republic Indoor Theme Park and several luxury hotels, restaurants, cafes and shops. These have exhibited the characteristics of experiential retailing and ‘retailtailment’, a rather recent concept in the modern large scale retail shopping phenomena. Because of these aspects, it has received a number of awards, accolades and acclaims such as Best Retail Development Scheme (Large) Award and Best use of Lighting in a retail environment Award.
Applying the VRIO toolkit shows that, Dubai Mall’s reputation is a valuable, rare and costly to imitate resource. It is valuable because it is by virtue of this reputation that the Dubai Mall is the most visited shopping and leisure destination in the world. Its close vicinity to the world’s tallest building, Burj Khalifa, further contributes to its fame and reputation. Its reputation is a rare resource since only a few retail shopping malls can be comparative to it, such as the South China Mall, SM City North Edsa and SM Mall of Asia. It is very costly to imitate because of the vast resources required to develop such a property in area and scope, making it the most ambitious retail launch in the UAE to date.
2. Masdar City Abu Dhabi
Masdar City Abu Dhabi has been developed along the reputational concept of building the most sustainable emerging clean technology community on the planet (Masdarcity.ae). It has been modeled along the precincts of green urban development, making it the world’s most eco-friendly urban development (Zerkel, (2014). Its reputation as a hub for renewable energy and clean technologies positions it as a premier business location in the global arena. It promises a business environment where firms can thrive on its reputation as the world’s first eco city.
Applying VRIO toolkit shows that Masdar City’s vital resource is its reputation as the world’s first...

Find Another Essay On VRIO Analysis

The IMAX in 1990-2007 Case Study

2980 words - 12 pages whether or not the core competences mentioned in the last section are sustainable. The illustration is based on VRIO analysis what has submitted 4 questions, they are the question of value, the question of rarity, the question of immitability, and the question of organization. The competitive advantages that had yielded form certain pattern of core competences were strongly towards Resource-Base View. And the figure describes that major part of

Nintendo’s Strategy in 2009: The Ongoing Battle with Microsoft and Sony

2378 words - 10 pages large number of people from different ages, which resulted in a large number of sales and profit. Unfortunately, nowadays the demand of the video games slightly decreased because of the new games and devices introduced recently. This internal analysis of Nintendo conducts its competitive strength assessment versus its competitors and analyzes the firm using the value chain analysis tool and the VRIO framework. Nintendo’s Value Chain Analysis

cons report

1084 words - 5 pages issues Philips IT is facing today, from Institution and resource based perspective. This document is constructed as following: Next chapter provides Philips’ background, history and present new IT strategy and new operating model. Here we will look at the progress Philips made with offshoring activities to India in 2007 and the areas where we still need to improve and fill some gaps In Chapter 4, a resource based analysis based on VRIO analysis

Strategy Book Reviews and Five Product Strategy Plans

1370 words - 6 pages thinking rather than only relying on classical strategy theory. Tovstiga (2013) provides three simple high-level frameworks for strategy analysis, ‘value proposition,’ ‘unique competing space’ and ‘opportunity-response’, to answer the pertinent questions of business strategy – where, how, why, what and when (chapter 5). Further, Tovstiga (2013) reviews externally-focused supporting frameworks for strategic analysis such as PESTLE, S-Curve and

Stratergic analysis

4721 words - 19 pages consumers shift away from premium product mix to stay in limited budgets during economic hardships.  Changing Consumer tastes and lifestyle choices: The shift of consumers toward more healthy products and the risk of coffee culture being just a fad represent a threat for Starbucks going into the future. 3.3) Starbucks Generic Value Chain: Analysis in Appendix 6 3.4) Starbucks VRIO Analysis: Shown in Appendix 4. The VRIO framework is used

Case study and analysis of a SME and the development of a sustainable business proposal

3700 words - 15 pages Strategy, Strategic Design & Strategic Behavior"Eagle Box Company"Table of Contents1.0 Letter to Mr. Cody Faircloth2.0 Background3.0 External Environment Analysis (SW)3.1Societal Environment Analysis3.2Task Environment Analysis4.0 Internal Environment Analysis (OT)4.1 Sales & Service4.2 Production4.3 Accounting & Finance5.0 Chain of Command6.0 Financial Analysis7.0 Value Industry Chain8.0 VRIO Analysis9.0 Analysis of Strategic

Finding Opportunities in Emerging Markets

1451 words - 6 pages their willingness and capability to learn. Transforming this learning and the abundance of low cost resources allows these companies to execute a low cost strategy. This low cost strategy has provided the inlets into both emerging and developed markets. Using a strict resource based analysis consisting of value, rarity, imitability and organization (VRIO), suggest such an imitation strategy will lead to parity and average returns. An example

Guided readings HRM literature - HRM - Guided reading

1662 words - 7 pages lower their commitment. The methods, data analysis and results Outlines and justifies how the research was done. The authors justifies his work with several references to HRM current and past researches, that make references to surveys, theories and empirical analysis. The authors, also developed tables to clearly illustrate their ideas. Conclusion and discussion Moder HRM? Finally Davidson et al (2011) discuss the

Business Strategy Models- A Critical Review

3712 words - 15 pages company strategy and has developed several strategic models key to this topic."Porter's five forces is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. It uses concepts developing, Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers

TOYOTA

4412 words - 18 pages Cycle 2.3 Industry Demand Determinants 2.4 Porter's Five Forces 2.5 Industry Cost Structure Benchmark 2.6 Industry Competitive Landscape 2.7 Major Competitors 2.8 Key Success Factors in Industry 3 INTERNAL ENVIRONMENT OF TOYOTA 3.1 Core Competencies 3.2 Distinct Competency 3.3 SWOT Analysis 3.4 BCG Matrix: Internal Analysis of Toyota Portfolio 3.5 VRIO Framework Analysis 3.6 Toyota's Efforts in Emerging Economies 3.7 Case Study: Toyota's

Google and Some of its Applications

1591 words - 7 pages , Chitika etc. Value Rarity Costly to Imitate? Organization Competitive Implications Brand Yes Yes Yes Yes Sustained Competitive Advantage Employees and Culture Yes Yes No Yes Temporary Competitive Advantage Android Mobile platform Yes Yes Yes Yes Sustained Competitive Advantage Infrastructure and data center Yes Yes Yes Yes Sustained Competitive Advantage Advertising platform Yes Yes No Yes Temporary Competitive Advantage Table 1: Google VRIO

Similar Essays

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

Company Profile For Strategic Analysis Ohio University Essay

1198 words - 5 pages also installed, in all of its aircraft, security cameras in the passenger cabin with monitors in the cockpit, as a security measure, so that flight crews are aware of what is happening in the cabin at all times. All of these technological innovations serve to make JetBlue’s service more efficient and secure and is valued highly by customers. VRIO Analysis: Per the VRIO analysis (Fig 1), it is evident that none of its resource/capabilities are

Three Important Facts About Bhp Billiton A Multinational Mining Company In Australia

1870 words - 8 pages may adversely affect the productivity and financial performance of our operations. INTERNAL ANALYSIS Evaluating the firm’s portfolio of resources and the bundles of heterogeneous resources and capabilities managers have created. This perspective suggest that individual firm must possess at least some resources and capabilities that other companies do not – at least in the same combination. (Hanson, Hitt, Ireland, & Hoskisson, 2011, p. 72

Qantas Pestle Porters Five Forces Essay

2344 words - 9 pages and Porter's Five Force frameworks, this report will assess Qantas' opportunities and strengths within the aviation industry. In addition to this, the report will focus on the specific resources and capabilities that enable Qantas to obtain a competitive advantage over its competitors through the use of the VRIO framework. A final analysis will be conducted to identify issues Qantas face and recommendations of how they can rectify these