Vornado Realty Trust 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 Vornado Realty Trust to do better resource allocation and build a defensible value and supply chain.

Order a Vornado Realty Trust VRIO / VRIN Analysis now

What is a Valuable Resource for Vornado Realty Trust? Defining Valuable in VRIO

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

What are Rare Resources for Vornado Realty Trust? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Vornado Realty Trust? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Vornado Realty Trust 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. Vornado Realty Trust 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 Vornado Realty Trust

What is a Organization for Vornado Realty Trust? Defining Organization in VRIO

Even if the Vornado Realty Trust 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 Vornado Realty Trust 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
Sales Force and Channel Management of Vornado Realty Trust	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Vornado Realty Trust sustainable competitive advantage. Potential is certainly there.
Access to Cheap Capital for Vornado Realty Trust	Yes, as a leading player in the industry and current macro economic conditions, Vornado Realty Trust has access to cheap capital	No	Can be imitated by the competitors of Vornado Realty Trust	Not been totally exploited	Not significant in creating competitive advantage
Position among Retailers and Wholesalers – Vornado Realty Trust retail strategy	Yes, Vornado Realty Trust has strong relationship with retailers and wholesalers	Yes, Vornado Realty Trust has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Vornado Realty Trust dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Successful Implementation of Digital Strategy at Vornado Realty Trust	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
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Vornado Realty Trust to thwart competition	Yes, IPR and other rights are rare and competition of Vornado Realty Trust 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
Global and Local Presence of Vornado Realty Trust	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Vornado Realty Trust but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Vornado Realty Trust operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Vornado Realty Trust is successful at it	Providing Strong Competitive Advantage
Opportunities in the Adjacent Industries that Vornado Realty Trust 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
Supply Chain Network Flexibility of Vornado Realty Trust	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Vornado Realty Trust organizational structure and capabilities	Keeps the business running
Vornado Realty Trust 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 Vornado Realty Trust	Vornado Realty Trust is leveraging the customer loyalty to good effect	Provide Vornado Realty Trust medium term competitive advantage
Track Record of Leadership Team at Vornado Realty Trust	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Alignment of Activities with Vornado Realty Trust Corporate Strategy	Yes	No	Each of the firm has its own strategy	Yes, company has organizational skills to extract the maximum out of it.	Still lots of potential to build on it
Financial Resources of Vornado Realty Trust	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Vornado Realty Trust has reasonably sound financial position	Vornado Realty Trust has relatively sustainable Competitive Advantage

Vornado Realty Trust 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