Marathon Oil 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 Marathon Oil to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Marathon Oil? Defining Valuable in VRIO

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

What are Rare Resources for Marathon Oil? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Marathon Oil? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Marathon Oil 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. Marathon Oil 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 Marathon Oil

What is a Organization for Marathon Oil? Defining Organization in VRIO

Even if the Marathon Oil 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 Marathon Oil 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 Marathon Oil dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Opportunities in the E-Commerce Space for Marathon Oil - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Marathon Oil 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
Opportunities in the Adjacent Industries that Marathon Oil 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
Marketing Expertise within Marathon Oil	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 Marathon Oil are often matched by competitors	Yes, Marathon Oil is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Global and Local Presence of Marathon Oil	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Marathon Oil but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Marathon Oil	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Opportunities for Brand Extensions for Marathon Oil 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
Alignment of Activities with Marathon Oil 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
Track Record of Leadership Team at Marathon Oil	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Brand Positioning of Marathon Oil 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
Ability to Attract Talent in Various Local & Global Markets	Yes, Marathon Oil 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 Marathon Oil	To a large extent yes	Providing Strong Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Marathon Oil to thwart competition	Yes, IPR and other rights are rare and competition of Marathon Oil 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
Access to Cheap Capital for Marathon Oil	Yes, as a leading player in the industry and current macro economic conditions, Marathon Oil has access to cheap capital	No	Can be imitated by the competitors of Marathon Oil	Not been totally exploited	Not significant in creating competitive advantage
Product Portfolio and Synergy among Various Product Lines of Marathon Oil	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

Marathon Oil 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