Hilton Worldwide Holdings 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 Hilton Worldwide Holdings to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Hilton Worldwide Holdings? Defining Valuable in VRIO

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

What are Rare Resources for Hilton Worldwide Holdings? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Hilton Worldwide Holdings? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Hilton Worldwide Holdings 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. Hilton Worldwide Holdings 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 Hilton Worldwide Holdings

What is a Organization for Hilton Worldwide Holdings? Defining Organization in VRIO

Even if the Hilton Worldwide Holdings 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 Hilton Worldwide Holdings 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 Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Hilton Worldwide Holdings dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Hilton Worldwide Holdings to thwart competition	Yes, IPR and other rights are rare and competition of Hilton Worldwide Holdings 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
Financial Resources of Hilton Worldwide Holdings	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Hilton Worldwide Holdings has reasonably sound financial position	Hilton Worldwide Holdings has relatively sustainable Competitive Advantage
Pricing Strategies of Hilton Worldwide Holdings	Yes, Hilton Worldwide Holdings has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Hilton Worldwide Holdings with a Temporary Competitive Advantage
Opportunities in the Adjacent Industries that Hilton Worldwide Holdings 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 Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Hilton Worldwide Holdings operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Hilton Worldwide Holdings is successful at it	Providing Strong Competitive Advantage
Alignment of Activities with Hilton Worldwide Holdings 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
Brand Positioning of Hilton Worldwide Holdings 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
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Opportunities in the E-Commerce Space for Hilton Worldwide Holdings - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Hilton Worldwide Holdings 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
Hilton Worldwide Holdings 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 Hilton Worldwide Holdings	Hilton Worldwide Holdings is leveraging the customer loyalty to good effect	Provide Hilton Worldwide Holdings medium term competitive advantage
Brand awareness of Hilton Worldwide Holdings products and services	Yes, the brand awareness of Hilton Worldwide Holdings products are high	Yes, Hilton Worldwide Holdings has one of the leading brand in the industry	No	Hilton Worldwide Holdings has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Customer Community of Hilton Worldwide Holdings	Yes, as customers are co-creating products	Yes, the Hilton Worldwide Holdings has able to build a special relationship with its customers	It is very difficult for Hilton Worldwide Holdings competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Hilton Worldwide Holdings customers community ecosystem	Providing Strong Competitive Advantage
Access to Cheap Capital for Hilton Worldwide Holdings	Yes, as a leading player in the industry and current macro economic conditions, Hilton Worldwide Holdings has access to cheap capital	No	Can be imitated by the competitors of Hilton Worldwide Holdings	Not been totally exploited	Not significant in creating competitive advantage

Hilton Worldwide Holdings SWOT Analysis, SWOT Matrix, Weighted SWOT Case Study Solution & Analysis

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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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