Expeditors International of Washington 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 Expeditors International of Washington 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 Expeditors International of Washington? Defining Valuable in VRIO


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

What are Rare Resources for Expeditors International of Washington? Defining Rare in VRIO


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

What is a Inimitable (Difficult to Immitate) Resource for Expeditors International of Washington? Defining Inimitable in VRIO


A valuable and rare resource can provide a competitive advantage to Expeditors International of Washington 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. Expeditors International of Washington 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 Expeditors International of Washington

What is a Organization for Expeditors International of Washington? Defining Organization in VRIO


Even if the Expeditors International of Washington 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 Expeditors International of Washington 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 Expeditors International of Washington dominant market position Can be imitated by competitors Yes Providing Sustainable Competitive Advantage
Ability to Attract Talent in Various Local & Global Markets Yes, Expeditors International of Washington 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 Expeditors International of Washington To a large extent yes Providing Strong Competitive Advantage
Supply Chain Network Flexibility of Expeditors International of Washington Yes Yes Near competitors also have flexible supply chain and share some of the suppliers Fully utilized by Expeditors International of Washington organizational structure and capabilities Keeps the business running
Opportunities in the E-Commerce Space for Expeditors International of Washington - using Present IT Capabilities Yes, the e-commerce space is rapidly growing and Expeditors International of Washington 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
Track Record of Leadership Team at Expeditors International of Washington Yes Yes Can't be imitated by competitors Yes Providing Strong Competitive Advantage
Expeditors International of Washington 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 Expeditors International of Washington Expeditors International of Washington is leveraging the customer loyalty to good effect Provide Expeditors International of Washington medium term competitive advantage
Intellectual Property Rights, Copyrights, and Trademarks Yes, they are extremely valuable for Expeditors International of Washington to thwart competition Yes, IPR and other rights are rare and competition of Expeditors International of Washington 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
Brand Positioning of Expeditors International of Washington 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
Track Record of Project Execution Yes, especially in an industry where there are frequent cost overun Yes, especially in the segment that Expeditors International of Washington operates in No, none of the competitors so far has able to imitate this expertise Yes, Expeditors International of Washington is successful at it Providing Strong Competitive Advantage
Vision of the Leadership for Next Set of Challenges Yes No Can't be imitated by competitors of Expeditors International of Washington Not based on information provided in the case Can Lead to Strong Competitive Advantage
Alignment of Activities with Expeditors International of Washington 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
Customer Community of Expeditors International of Washington Yes, as customers are co-creating products Yes, the Expeditors International of Washington has able to build a special relationship with its customers It is very difficult for Expeditors International of Washington competitors to imitate the culture and community dedication Going by the data, there is still a lot of upside in building on Expeditors International of Washington customers community ecosystem Providing Strong Competitive Advantage
Financial Resources of Expeditors International of Washington Yes No Financial instruments and market liquidity are available to all the nearest competitors Expeditors International of Washington has reasonably sound financial position Expeditors International of Washington has relatively sustainable Competitive Advantage
Distribution and Logistics Costs Competitiveness Yes, as it helps Expeditors International of Washington in delivering lower costs No Can be imitated by competitors of Expeditors International of Washington but it is difficult Yes Medium to Long Term Competitive Advantage


Expeditors International of Washington 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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