Twitter 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 Twitter to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Twitter? Defining Valuable in VRIO

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

What are Rare Resources for Twitter? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Twitter? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Twitter 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. Twitter 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 Twitter

What is a Organization for Twitter? Defining Organization in VRIO

Even if the Twitter 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 Twitter 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 awareness of Twitter products and services	Yes, the brand awareness of Twitter products are high	Yes, Twitter has one of the leading brand in the industry	No	Twitter has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Supply Chain Network Flexibility of Twitter	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Twitter organizational structure and capabilities	Keeps the business running
Product Portfolio and Synergy among Various Product Lines of Twitter	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 Twitter 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
Financial Resources of Twitter	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Twitter has reasonably sound financial position	Twitter has relatively sustainable Competitive Advantage
Opportunities in the E-Commerce Space for Twitter - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Twitter 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
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Twitter to thwart competition	Yes, IPR and other rights are rare and competition of Twitter 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
Alignment of Activities with Twitter 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
Position among Retailers and Wholesalers – Twitter retail strategy	Yes, Twitter has strong relationship with retailers and wholesalers	Yes, Twitter has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Ability to Attract Talent in Various Local & Global Markets	Yes, Twitter 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 Twitter	To a large extent yes	Providing Strong Competitive Advantage
Successful Implementation of Digital Strategy at Twitter	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
Access to Cheap Capital for Twitter	Yes, as a leading player in the industry and current macro economic conditions, Twitter has access to cheap capital	No	Can be imitated by the competitors of Twitter	Not been totally exploited	Not significant in creating competitive advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Twitter dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage

Twitter 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