Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
Chipotle Mexican Grill 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 Chipotle Mexican Grill to do better resource allocation and build a defensible value and supply chain.
Order a Chipotle Mexican Grill VRIO / VRIN Analysis now
What is a Valuable Resource for Chipotle Mexican Grill? Defining Valuable in VRIO
A resource or capability is considered valuable for Chipotle Mexican Grill , if it allows the
Chipotle Mexican Grill to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Chipotle Mexican Grill to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Chipotle Mexican Grill.
What are Rare Resources for Chipotle Mexican Grill? Defining Rare in VRIO
In an industry that Chipotle Mexican Grill operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Chipotle Mexican Grill require rare resources to compete in the industry. If Chipotle Mexican Grill don’t have rare resources that are required to succeed in the industry then Chipotle Mexican Grill won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Chipotle Mexican Grill competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Chipotle Mexican Grill? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Chipotle Mexican Grill 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. Chipotle Mexican Grill 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 Chipotle Mexican Grill
What is a Organization for Chipotle Mexican Grill? Defining Organization in VRIO
Even if the Chipotle Mexican Grill 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 Chipotle Mexican Grill 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 |
---|---|---|---|---|---|
Financial Resources of Chipotle Mexican Grill | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Chipotle Mexican Grill has reasonably sound financial position | Chipotle Mexican Grill has relatively sustainable Competitive Advantage |
Opportunities in the Adjacent Industries that Chipotle Mexican Grill 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 |
Product Portfolio and Synergy among Various Product Lines of Chipotle Mexican Grill | 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 |
Brand Positioning of Chipotle Mexican Grill 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 Leadership Team at Chipotle Mexican Grill | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Successful Implementation of Digital Strategy at Chipotle Mexican Grill | 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 |
Marketing Expertise within Chipotle Mexican Grill | 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 Chipotle Mexican Grill are often matched by competitors | Yes, Chipotle Mexican Grill is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Supply Chain Network Flexibility of Chipotle Mexican Grill | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Chipotle Mexican Grill organizational structure and capabilities | Keeps the business running |
Opportunities in the E-Commerce Space for Chipotle Mexican Grill - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Chipotle Mexican Grill 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Chipotle Mexican Grill in delivering lower costs | No | Can be imitated by competitors of Chipotle Mexican Grill but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Customer Community of Chipotle Mexican Grill | Yes, as customers are co-creating products | Yes, the Chipotle Mexican Grill has able to build a special relationship with its customers | It is very difficult for Chipotle Mexican Grill competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Chipotle Mexican Grill customers community ecosystem | Providing Strong Competitive Advantage |
Global and Local Presence of Chipotle Mexican Grill | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Chipotle Mexican Grill but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – Chipotle Mexican Grill retail strategy | Yes, Chipotle Mexican Grill has strong relationship with retailers and wholesalers | Yes, Chipotle Mexican Grill has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Pricing Strategies of Chipotle Mexican Grill | Yes, Chipotle Mexican Grill has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Chipotle Mexican Grill with a Temporary Competitive Advantage |
Chipotle Mexican Grill 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
MBA Admission help, MBA Assignment Help, MBA Case Study Help, Online Analytics Live Classes
Order Now
Previous VRIO / VRIN Analysis
- Cintas VRIO / VRIN Analysis
- General Cable VRIO / VRIN Analysis
- Electronic Arts VRIO / VRIN Analysis
- Keurig Green Mountain VRIO / VRIN Analysis
- MRC Global VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- Levi Strauss VRIO / VRIN Analysis
- Talen Energy VRIO / VRIN Analysis
- Westlake Chemical VRIO / VRIN Analysis
- Hasbro VRIO / VRIN Analysis
- Securian Financial Group VRIO / VRIN Analysis