priceline.com 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 priceline.com to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for priceline.com? Defining Valuable in VRIO

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

What are Rare Resources for priceline.com? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for priceline.com? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to priceline.com 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. priceline.com 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 priceline.com

What is a Organization for priceline.com? Defining Organization in VRIO

Even if the priceline.com 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 priceline.com 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
Ability to Attract Talent in Various Local & Global Markets	Yes, priceline.com 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 priceline.com	To a large extent yes	Providing Strong Competitive Advantage
Pricing Strategies of priceline.com	Yes, priceline.com has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide priceline.com with a Temporary Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps priceline.com in delivering lower costs	No	Can be imitated by competitors of priceline.com but it is difficult	Yes	Medium to Long Term Competitive Advantage
Brand awareness of priceline.com products and services	Yes, the brand awareness of priceline.com products are high	Yes, priceline.com has one of the leading brand in the industry	No	priceline.com has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Marketing Expertise within priceline.com	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 priceline.com are often matched by competitors	Yes, priceline.com is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
priceline.com 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 priceline.com	priceline.com is leveraging the customer loyalty to good effect	Provide priceline.com medium term competitive advantage
Product Portfolio and Synergy among Various Product Lines of priceline.com	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
Customer Community of priceline.com	Yes, as customers are co-creating products	Yes, the priceline.com has able to build a special relationship with its customers	It is very difficult for priceline.com competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on priceline.com customers community ecosystem	Providing Strong Competitive Advantage
Alignment of Activities with priceline.com 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
Financial Resources of priceline.com	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	priceline.com has reasonably sound financial position	priceline.com has relatively sustainable Competitive Advantage
Opportunities in the Adjacent Industries that priceline.com 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
Global and Local Presence of priceline.com	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of priceline.com but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Brand Positioning of priceline.com 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
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that priceline.com operates in	No, none of the competitors so far has able to imitate this expertise	Yes, priceline.com is successful at it	Providing Strong Competitive Advantage

priceline.com 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