Penn National Gaming 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 Penn National Gaming to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Penn National Gaming? Defining Valuable in VRIO

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

What are Rare Resources for Penn National Gaming? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Penn National Gaming? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Penn National Gaming 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. Penn National Gaming 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 Penn National Gaming

What is a Organization for Penn National Gaming? Defining Organization in VRIO

Even if the Penn National Gaming 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 Penn National Gaming 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 Penn National Gaming	Yes, Penn National Gaming has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Penn National Gaming with a Temporary Competitive Advantage
Supply Chain Network Flexibility of Penn National Gaming	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Penn National Gaming organizational structure and capabilities	Keeps the business running
Sales Force and Channel Management of Penn National Gaming	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Penn National Gaming sustainable competitive advantage. Potential is certainly there.
Global and Local Presence of Penn National Gaming	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Penn National Gaming but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Brand awareness of Penn National Gaming products and services	Yes, the brand awareness of Penn National Gaming products are high	Yes, Penn National Gaming has one of the leading brand in the industry	No	Penn National Gaming has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Opportunities in the E-Commerce Space for Penn National Gaming - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Penn National Gaming 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
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Penn National Gaming operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Penn National Gaming is successful at it	Providing Strong Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Penn National Gaming	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Financial Resources of Penn National Gaming	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Penn National Gaming has reasonably sound financial position	Penn National Gaming has relatively sustainable Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Penn National Gaming to thwart competition	Yes, IPR and other rights are rare and competition of Penn National Gaming 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
Opportunities in the Adjacent Industries that Penn National Gaming 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
Distribution and Logistics Costs Competitiveness	Yes, as it helps Penn National Gaming in delivering lower costs	No	Can be imitated by competitors of Penn National Gaming but it is difficult	Yes	Medium to Long Term Competitive Advantage
Penn National Gaming 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 Penn National Gaming	Penn National Gaming is leveraging the customer loyalty to good effect	Provide Penn National Gaming medium term competitive advantage
Marketing Expertise within Penn National Gaming	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 Penn National Gaming are often matched by competitors	Yes, Penn National Gaming is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage

Penn National Gaming 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