MGM Resorts International 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 MGM Resorts International to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for MGM Resorts International? Defining Valuable in VRIO

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

What are Rare Resources for MGM Resorts International? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for MGM Resorts International? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to MGM Resorts International 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. MGM Resorts International 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 MGM Resorts International

What is a Organization for MGM Resorts International? Defining Organization in VRIO

Even if the MGM Resorts International 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 MGM Resorts International 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
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of MGM Resorts International	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Position among Retailers and Wholesalers – MGM Resorts International retail strategy	Yes, MGM Resorts International has strong relationship with retailers and wholesalers	Yes, MGM Resorts International has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Opportunities for Brand Extensions for MGM Resorts International 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
Sales Force and Channel Management of MGM Resorts International	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide MGM Resorts International sustainable competitive advantage. Potential is certainly there.
Global and Local Presence of MGM Resorts International	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of MGM Resorts International but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that MGM Resorts International operates in	No, none of the competitors so far has able to imitate this expertise	Yes, MGM Resorts International is successful at it	Providing Strong Competitive Advantage
Brand awareness of MGM Resorts International products and services	Yes, the brand awareness of MGM Resorts International products are high	Yes, MGM Resorts International has one of the leading brand in the industry	No	MGM Resorts International has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with MGM Resorts International dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Financial Resources of MGM Resorts International	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	MGM Resorts International has reasonably sound financial position	MGM Resorts International has relatively sustainable Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
MGM Resorts International 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 MGM Resorts International	MGM Resorts International is leveraging the customer loyalty to good effect	Provide MGM Resorts International medium term competitive advantage
Opportunities in the E-Commerce Space for MGM Resorts International - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and MGM Resorts International 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
Pricing Strategies of MGM Resorts International	Yes, MGM Resorts International has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide MGM Resorts International with a Temporary Competitive Advantage
Successful Implementation of Digital Strategy at MGM Resorts International	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

MGM Resorts International 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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