Energy Transfer Equity 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 Energy Transfer Equity to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Energy Transfer Equity? Defining Valuable in VRIO

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

What are Rare Resources for Energy Transfer Equity? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Energy Transfer Equity? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Energy Transfer Equity 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. Energy Transfer Equity 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 Energy Transfer Equity

What is a Organization for Energy Transfer Equity? Defining Organization in VRIO

Even if the Energy Transfer Equity 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 Energy Transfer Equity 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
Brand Positioning of Energy Transfer Equity 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 Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Energy Transfer Equity operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Energy Transfer Equity is successful at it	Providing Strong Competitive Advantage
Successful Implementation of Digital Strategy at Energy Transfer Equity	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
Supply Chain Network Flexibility of Energy Transfer Equity	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Energy Transfer Equity organizational structure and capabilities	Keeps the business running
Position among Retailers and Wholesalers – Energy Transfer Equity retail strategy	Yes, Energy Transfer Equity has strong relationship with retailers and wholesalers	Yes, Energy Transfer Equity has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Brand awareness of Energy Transfer Equity products and services	Yes, the brand awareness of Energy Transfer Equity products are high	Yes, Energy Transfer Equity has one of the leading brand in the industry	No	Energy Transfer Equity has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps Energy Transfer Equity in delivering lower costs	No	Can be imitated by competitors of Energy Transfer Equity but it is difficult	Yes	Medium to Long Term Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Energy Transfer Equity to thwart competition	Yes, IPR and other rights are rare and competition of Energy Transfer Equity 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
Pricing Strategies of Energy Transfer Equity	Yes, Energy Transfer Equity has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Energy Transfer Equity with a Temporary Competitive Advantage
Energy Transfer Equity 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 Energy Transfer Equity	Energy Transfer Equity is leveraging the customer loyalty to good effect	Provide Energy Transfer Equity medium term competitive advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Energy Transfer Equity	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Global and Local Presence of Energy Transfer Equity	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Energy Transfer Equity but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Product Portfolio and Synergy among Various Product Lines of Energy Transfer Equity	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

Energy Transfer Equity SWOT Analysis, SWOT Matrix, Weighted SWOT Case Study Solution & Analysis

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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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