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Tui 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 Tui to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Tui? Defining Valuable in VRIO
A resource or capability is considered valuable for Tui , if it allows the
Tui to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Tui to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Tui.
What are Rare Resources for Tui? Defining Rare in VRIO
In an industry that Tui operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Tui require rare resources to compete in the industry. If Tui don’t have rare resources that are required to succeed in the industry then Tui won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Tui competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Tui? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Tui 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. Tui 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 Tui
What is a Organization for Tui? Defining Organization in VRIO
Even if the Tui 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 Tui 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 |
---|---|---|---|---|---|
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Financial Resources of Tui | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Tui has reasonably sound financial position | Tui has relatively sustainable Competitive Advantage |
Brand Positioning of Tui 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 |
Opportunities in the Adjacent Industries that Tui 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 |
Track Record of Leadership Team at Tui | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Tui in delivering lower costs | No | Can be imitated by competitors of Tui but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Customer Community of Tui | Yes, as customers are co-creating products | Yes, the Tui has able to build a special relationship with its customers | It is very difficult for Tui competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Tui customers community ecosystem | Providing Strong Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Tui | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Alignment of Activities with Tui 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 |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Tui operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Tui is successful at it | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – Tui retail strategy | Yes, Tui has strong relationship with retailers and wholesalers | Yes, Tui has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Brand awareness of Tui products and services | Yes, the brand awareness of Tui products are high | Yes, Tui has one of the leading brand in the industry | No | Tui has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Global and Local Presence of Tui | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Tui but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Tui 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 Tui | Tui is leveraging the customer loyalty to good effect | Provide Tui medium term competitive advantage |
Tui 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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