Tim Hortons 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 Tim Hortons to do better resource allocation and build a defensible value and supply chain.

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VRIO / VRIN Analysis

What is a Valuable Resource for Tim Hortons? Defining Valuable in VRIO


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

What are Rare Resources for Tim Hortons? Defining Rare in VRIO


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

What is a Inimitable (Difficult to Immitate) Resource for Tim Hortons? Defining Inimitable in VRIO


A valuable and rare resource can provide a competitive advantage to Tim Hortons 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. Tim Hortons 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 Tim Hortons

What is a Organization for Tim Hortons? Defining Organization in VRIO


Even if the Tim Hortons 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 Tim Hortons 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
Access to Cheap Capital for Tim Hortons Yes, as a leading player in the industry and current macro economic conditions, Tim Hortons has access to cheap capital No Can be imitated by the competitors of Tim Hortons 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
Brand awareness of Tim Hortons products and services Yes, the brand awareness of Tim Hortons products are high Yes, Tim Hortons has one of the leading brand in the industry No Tim Hortons has utilized its leading brand position in various segments Sustainable Competitive Advantage
Successful Implementation of Digital Strategy at Tim Hortons Yes, without a comprehensive digital strategy it is extremely difficult to compete No, as most of the firms are investing into digitalizing operations Can be imitated by competitors One of the leading player in the industry Digital strategy has become critical in the industry but it can't provide sustainable competitive advantage to
Alignment of Activities with Tim Hortons 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
Opportunities in the E-Commerce Space for Tim Hortons - using Present IT Capabilities Yes, the e-commerce space is rapidly growing and Tim Hortons can exploit the emerging opportunities No, most of the competitors are investing in IT to enter the space The AI and inhouse analytics can be difficult to imitate It is just the start for the organization In the long run it can provide sustainable competitive advantage
Intellectual Property Rights, Copyrights, and Trademarks Yes, they are extremely valuable for Tim Hortons to thwart competition Yes, IPR and other rights are rare and competition of Tim Hortons will find it extremely difficult to copy Risk of imitation is low but given the margins in the industry disruption chances are high So far the firm has not utilized the full extent of its IPR & other properties Providing Strong Competitive Advantage
Supply Chain Network Flexibility of Tim Hortons Yes Yes Near competitors also have flexible supply chain and share some of the suppliers Fully utilized by Tim Hortons organizational structure and capabilities Keeps the business running
Ability to Attract Talent in Various Local & Global Markets Yes, Tim Hortons 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 Tim Hortons To a large extent yes Providing Strong Competitive Advantage
Track Record of Leadership Team at Tim Hortons Yes Yes Can't be imitated by competitors Yes Providing Strong Competitive Advantage
Opportunities for Brand Extensions for Tim Hortons products Yes, new niches are emerging in the market No, as most of the competitors are also targeting those niches Yes can be imitated by the competitors Brand extensions will require higher marketing budget Temporary Competitive Advantage
Vision of the Leadership for Next Set of Challenges Yes No Can't be imitated by competitors of Tim Hortons Not based on information provided in the case Can Lead to Strong Competitive Advantage
Global and Local Presence of Tim Hortons Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles Yes Can be imitated by competitors of Tim Hortons but at a relatively high cost Yes, it is one of the most diversified companies in its industry Providing Strong Competitive Advantage
Pricing Strategies of Tim Hortons Yes, Tim Hortons has sound pricing strategies No Pricing strategies are regularly imitated in the industry Yes, firm has a pricing analytics engine It can only provide Tim Hortons with a Temporary Competitive Advantage


Tim Hortons 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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