Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
American Eagle Outfitters 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 American Eagle Outfitters to do better resource allocation and build a defensible value and supply chain.
Order a American Eagle Outfitters VRIO / VRIN Analysis now
What is a Valuable Resource for American Eagle Outfitters? Defining Valuable in VRIO
A resource or capability is considered valuable for American Eagle Outfitters , if it allows the
American Eagle Outfitters to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow American Eagle Outfitters to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for American Eagle Outfitters.
What are Rare Resources for American Eagle Outfitters? Defining Rare in VRIO
In an industry that American Eagle Outfitters operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. American Eagle Outfitters require rare resources to compete in the industry. If American Eagle Outfitters don’t have rare resources that are required to succeed in the industry then American Eagle Outfitters won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide American Eagle Outfitters competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for American Eagle Outfitters? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to American Eagle Outfitters 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. American Eagle Outfitters 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 American Eagle Outfitters
What is a Organization for American Eagle Outfitters? Defining Organization in VRIO
Even if the American Eagle Outfitters 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 American Eagle Outfitters 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 |
---|---|---|---|---|---|
Track Record of Leadership Team at American Eagle Outfitters | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Financial Resources of American Eagle Outfitters | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | American Eagle Outfitters has reasonably sound financial position | American Eagle Outfitters has relatively sustainable Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with American Eagle Outfitters dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Successful Implementation of Digital Strategy at American Eagle Outfitters | 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 |
Ability to Attract Talent in Various Local & Global Markets | Yes, American Eagle Outfitters 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 American Eagle Outfitters | To a large extent yes | Providing Strong Competitive Advantage |
Brand awareness of American Eagle Outfitters products and services | Yes, the brand awareness of American Eagle Outfitters products are high | Yes, American Eagle Outfitters has one of the leading brand in the industry | No | American Eagle Outfitters has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of American Eagle Outfitters | 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 |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Global and Local Presence of American Eagle Outfitters | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of American Eagle Outfitters but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Opportunities for Brand Extensions for American Eagle Outfitters 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 |
Opportunities in the E-Commerce Space for American Eagle Outfitters - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and American Eagle Outfitters 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 |
Pricing Strategies of American Eagle Outfitters | Yes, American Eagle Outfitters has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide American Eagle Outfitters with a Temporary Competitive Advantage |
Customer Community of American Eagle Outfitters | Yes, as customers are co-creating products | Yes, the American Eagle Outfitters has able to build a special relationship with its customers | It is very difficult for American Eagle Outfitters competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on American Eagle Outfitters customers community ecosystem | Providing Strong Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of American Eagle Outfitters | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
American Eagle Outfitters 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
- Hub Group VRIO / VRIN Analysis
- Martin Marietta Materials VRIO / VRIN Analysis
- CalAtlantic Group VRIO / VRIN Analysis
- Carlisle VRIO / VRIN Analysis
- Lexmark International VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- Abercrombie & Fitch VRIO / VRIN Analysis
- Regal Beloit VRIO / VRIN Analysis
- Country Financial VRIO / VRIN Analysis
- Meritor VRIO / VRIN Analysis
- Tailored Brands VRIO / VRIN Analysis