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

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What is a Valuable Resource for Dominos Pizza? Defining Valuable in VRIO

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

What are Rare Resources for Dominos Pizza? Defining Rare in VRIO

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

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

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

What is a Organization for Dominos Pizza? Defining Organization in VRIO

Even if the Dominos Pizza 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 Dominos Pizza 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
Supply Chain Network Flexibility of Dominos Pizza	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Dominos Pizza organizational structure and capabilities	Keeps the business running
Ability to Attract Talent in Various Local & Global Markets	Yes, Dominos Pizza 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 Dominos Pizza	To a large extent yes	Providing Strong Competitive Advantage
Customer Community of Dominos Pizza	Yes, as customers are co-creating products	Yes, the Dominos Pizza has able to build a special relationship with its customers	It is very difficult for Dominos Pizza competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Dominos Pizza customers community ecosystem	Providing Strong Competitive Advantage
Opportunities for Brand Extensions for Dominos Pizza 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
Marketing Expertise within Dominos Pizza	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 Dominos Pizza are often matched by competitors	Yes, Dominos Pizza is leveraging both its inhouse marketing department and external expertise	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 Dominos Pizza operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Dominos Pizza is successful at it	Providing Strong Competitive Advantage
Sales Force and Channel Management of Dominos Pizza	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Dominos Pizza sustainable competitive advantage. Potential is certainly there.
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Dominos Pizza dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Position among Retailers and Wholesalers – Dominos Pizza retail strategy	Yes, Dominos Pizza has strong relationship with retailers and wholesalers	Yes, Dominos Pizza 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
Pricing Strategies of Dominos Pizza	Yes, Dominos Pizza has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Dominos Pizza with a Temporary Competitive Advantage
Global and Local Presence of Dominos Pizza	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Dominos Pizza but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Opportunities in the Adjacent Industries that Dominos Pizza 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
Product Portfolio and Synergy among Various Product Lines of Dominos Pizza	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

Dominos Pizza 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