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Emirates Airlines 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 Emirates Airlines to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Emirates Airlines? Defining Valuable in VRIO
A resource or capability is considered valuable for Emirates Airlines , if it allows the
Emirates Airlines to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Emirates Airlines to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Emirates Airlines.
What are Rare Resources for Emirates Airlines? Defining Rare in VRIO
In an industry that Emirates Airlines operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Emirates Airlines require rare resources to compete in the industry. If Emirates Airlines don’t have rare resources that are required to succeed in the industry then Emirates Airlines won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Emirates Airlines competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Emirates Airlines? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Emirates Airlines 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. Emirates Airlines 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 Emirates Airlines
What is a Organization for Emirates Airlines? Defining Organization in VRIO
Even if the Emirates Airlines 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 Emirates Airlines 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 |
---|---|---|---|---|---|
Opportunities in the Adjacent Industries that Emirates Airlines 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Emirates Airlines | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Sales Force and Channel Management of Emirates Airlines | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Emirates Airlines sustainable competitive advantage. Potential is certainly there. |
Emirates Airlines 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 Emirates Airlines | Emirates Airlines is leveraging the customer loyalty to good effect | Provide Emirates Airlines medium term competitive advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Emirates Airlines 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 Emirates Airlines | To a large extent yes | Providing Strong Competitive Advantage |
Global and Local Presence of Emirates Airlines | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Emirates Airlines but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Position among Retailers and Wholesalers – Emirates Airlines retail strategy | Yes, Emirates Airlines has strong relationship with retailers and wholesalers | Yes, Emirates Airlines has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Marketing Expertise within Emirates Airlines | 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 Emirates Airlines are often matched by competitors | Yes, Emirates Airlines is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Track Record of Leadership Team at Emirates Airlines | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Financial Resources of Emirates Airlines | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Emirates Airlines has reasonably sound financial position | Emirates Airlines has relatively sustainable Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Emirates Airlines in delivering lower costs | No | Can be imitated by competitors of Emirates Airlines but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Supply Chain Network Flexibility of Emirates Airlines | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Emirates Airlines organizational structure and capabilities | Keeps the business running |
Pricing Strategies of Emirates Airlines | Yes, Emirates Airlines has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Emirates Airlines with a Temporary Competitive Advantage |
Emirates Airlines 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
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