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