The tables below shows the analysis of VRIO Framework for Emirates airline
| Tangible resources | |
| Financial | The firm has a huge current asset value in terms of cash balances as well as cash equivalents. The emirates group is also known to be highly capable of raising equities since one of the shareholders is the government of UAE itself. These altogether are valuable resources. |
| Physical | The location of Dubai can never be imitated. This is because in the entire Middle East, it is in Dubai that forms the commercial headquarters. This has largely contributed to the success of this airline, since it is a very important factor over other key competitors to have a unique resource that can never be imitated whatsoever (Nuno & Nelson 2012). |
| Technological | The airline uses the most modern technologies to minimize emissions and fuel consumptions. This has also helped in reduction in negative impact on the environment. |
| Organizational | Effective strategic planning process has helped the airline to enjoy a large market share by changing with the demands of customers. The airline has developed strategies to satisfy their customers by purchasing the latest and comfortable airlines. Evaluations are normally done to make sure that improvements are made in weakness areas. |
| Intangible resources | |
| Human | Emirates Airlines has valuable resources in terms of competent and experienced staff members. This airline has the most experienced and knowledgeable staff members known in the aviation industry in the entire UAE. It has some senior staff members with over 50 years experience in the aviation industry. According to Arend (2006), training workers is very important in developing careers of individuals to make them competent, this helps in improving performance and success of an organization. |
| Innovation
and Creativity |
The airline staff is very creative and innovative; this is evident through the development of on board shower services, installation of board spa content and development of on board entertainment sections. |
| Reputation | The quality services offered by this airline are unique and cannot be imitated by other airlines. It has a reputation of the reliability and quality services offered. This has earned this airline a reputable brand name by customers.
|
| Organizational capabilities | |
| The airline has a competent workforce with skills and experience in the aviation industry. It has a capability of combining both tangible and intangible resources to obtain good results. All the resources, which are valuable, rare and unique has been organized properly to give the company success and improved performance. Al the sections in the airline are well organized and coordinated to make operations more efficient and economical. | |
| Applying the VRIO Framework- the value and rarity of a firm’s resources | ||
| Valuable and rare | Competitive advantage (at least temporarily). | |
| Applying the VRIO Framework, integrating the notion of Inimitability | ||
| Valuable, rare and costly to imitate | Sustained competitive advantage | |
| Summary of VRIO, Competitive Implications, and Economic Implications | ||||
| Valuable? | Rare? | Organized properly? | Competitive Implications | Economic Implications |
| Yes | Yes | Yes | Sustained Advantage | Above Normal |
References
Arend, R. J. (2006). Tests of the resource-based view: do the empirics have any clothes?. Strategic Organization, 4 (4), 409-421.From
http://soq.sagepub.com/content/4/4/409.short
Johansson, B. (2008). Developing a “Better” ERP System: The Risk of Loosing Competitive Advantage (pp. 1169-1178). Springer US.
From http://link.springer.com/chapter/10.1007/978-0-387-76312-5_42#page-1
Nuno, C., & Nelson, A. (2012). Valuable, rare, inimitable resources and organization (VRIO) resources or valuable, rare, inimitable resources (VRI) capabilities: What leads to competitive advantage?. African Journal of Business Management, 6 (37), 10159-10170. From http://www.academicjournals.org/journal/AJBM/article-abstract/BF2805829105