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TravelCenters of America 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 TravelCenters of America to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for TravelCenters of America? Defining Valuable in VRIO
A resource or capability is considered valuable for TravelCenters of America , if it allows the
TravelCenters of America to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow TravelCenters of America to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for TravelCenters of America.
What are Rare Resources for TravelCenters of America? Defining Rare in VRIO
In an industry that TravelCenters of America operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. TravelCenters of America require rare resources to compete in the industry. If TravelCenters of America don’t have rare resources that are required to succeed in the industry then TravelCenters of America won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide TravelCenters of America competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for TravelCenters of America? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to TravelCenters of America 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. TravelCenters of America 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 TravelCenters of America
What is a Organization for TravelCenters of America? Defining Organization in VRIO
Even if the TravelCenters of America 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 TravelCenters of America 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 |
---|---|---|---|---|---|
Pricing Strategies of TravelCenters of America | Yes, TravelCenters of America has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide TravelCenters of America with a Temporary Competitive Advantage |
Global and Local Presence of TravelCenters of America | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of TravelCenters of America but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Opportunities in the Adjacent Industries that TravelCenters of America 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 |
Position among Retailers and Wholesalers – TravelCenters of America retail strategy | Yes, TravelCenters of America has strong relationship with retailers and wholesalers | Yes, TravelCenters of America has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Marketing Expertise within TravelCenters of America | 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 TravelCenters of America are often matched by competitors | Yes, TravelCenters of America is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Access to Cheap Capital for TravelCenters of America | Yes, as a leading player in the industry and current macro economic conditions, TravelCenters of America has access to cheap capital | No | Can be imitated by the competitors of TravelCenters of America | Not been totally exploited | Not significant in creating competitive advantage |
TravelCenters of America 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 TravelCenters of America | TravelCenters of America is leveraging the customer loyalty to good effect | Provide TravelCenters of America medium term competitive advantage |
Successful Implementation of Digital Strategy at TravelCenters of America | 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 |
Brand awareness of TravelCenters of America products and services | Yes, the brand awareness of TravelCenters of America products are high | Yes, TravelCenters of America has one of the leading brand in the industry | No | TravelCenters of America has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Customer Community of TravelCenters of America | Yes, as customers are co-creating products | Yes, the TravelCenters of America has able to build a special relationship with its customers | It is very difficult for TravelCenters of America competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on TravelCenters of America customers community ecosystem | Providing Strong Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for TravelCenters of America to thwart competition | Yes, IPR and other rights are rare and competition of TravelCenters of America 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 |
Sales Force and Channel Management of TravelCenters of America | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide TravelCenters of America sustainable competitive advantage. Potential is certainly there. |
Track Record of Leadership Team at TravelCenters of America | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
TravelCenters of America 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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