Avis Budget Group 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 Avis Budget Group to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Avis Budget Group? Defining Valuable in VRIO

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

What are Rare Resources for Avis Budget Group? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Avis Budget Group? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Avis Budget Group 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. Avis Budget Group 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 Avis Budget Group

What is a Organization for Avis Budget Group? Defining Organization in VRIO

Even if the Avis Budget Group 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 Avis Budget Group 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
Brand awareness of Avis Budget Group products and services	Yes, the brand awareness of Avis Budget Group products are high	Yes, Avis Budget Group has one of the leading brand in the industry	No	Avis Budget Group has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Access to Cheap Capital for Avis Budget Group	Yes, as a leading player in the industry and current macro economic conditions, Avis Budget Group has access to cheap capital	No	Can be imitated by the competitors of Avis Budget Group	Not been totally exploited	Not significant in creating competitive advantage
Successful Implementation of Digital Strategy at Avis Budget Group	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
Product Portfolio and Synergy among Various Product Lines of Avis Budget Group	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
Position among Retailers and Wholesalers – Avis Budget Group retail strategy	Yes, Avis Budget Group has strong relationship with retailers and wholesalers	Yes, Avis Budget Group has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Brand Positioning of Avis Budget Group 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
Pricing Strategies of Avis Budget Group	Yes, Avis Budget Group has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Avis Budget Group with a Temporary Competitive Advantage
Customer Community of Avis Budget Group	Yes, as customers are co-creating products	Yes, the Avis Budget Group has able to build a special relationship with its customers	It is very difficult for Avis Budget Group competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Avis Budget Group customers community ecosystem	Providing Strong Competitive Advantage
Marketing Expertise within Avis Budget Group	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 Avis Budget Group are often matched by competitors	Yes, Avis Budget Group is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Avis Budget Group dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Track Record of Leadership Team at Avis Budget Group	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Avis Budget Group operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Avis Budget Group is successful at it	Providing Strong Competitive Advantage
Opportunities in the E-Commerce Space for Avis Budget Group - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Avis Budget Group 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

Avis Budget Group 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