Importance of VRIO Analysis : Assignment

ASSIGNMENT 2 FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 32: Business Strategy (574)
Submission date Date received (1st submission)
Re-submission date Date received (2nd submission)
Student name Nguyen Nho Minh Tuan Student ID GBD17061
Class GBD0818 Assessor name Le Xuan Nguyen
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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I
understand that making a false declaration is a form of malpractice.
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Table of Contents
I. Introduction:.......................................................................................................................................................4
II. Main content of the report:................................................................................................................................4
1. Strategic capabilities:..........................................................................................................................................4
2. VRIN/VRIO framework:.......................................................................................................................................7
3. Strengths and Weaknesses:................................................................................................................................9
III. Conclusion:....................................................................................................................................................10
IV. Reference:.....................................................................................................................................................11

I. Introduction:
To serialize the analysis circuit of assignment 1, this assignment will continue to analyze the Emirate
Company. This assignment, strategic capabilities and VRIN / VRIO framework will be analyzed and
clarified from that identify and analyze the strengths and weaknesses of Emirate.
Internal analysis will be conducted in three parts. Identification of the resources and competencies of
the company through value chain model. Distinction between threshold and distinctive resources and
competencies with the help of competency framework. Appraisal of the resources and competencies
through the application of the VIRO framework. With these analysis it will be possible to determine the
strengths and weaknesses of the company.
II. Main content of the report:
1. Strategic capabilities:
Value Chain model: Identification of the Resources & Competencies of the company will be identified
using Value chain model.
Porter's value chain model is highly popular in the business world. However, Emirates Airlines must
not take it as a rigid, standalone framework by assigning the equal importance to all activities. The
effective Value Chain Analysis requires Emirates Airlines to realise that all activities or functions do not
require same scrutiny level. Hence, the first step of adapting the Porter Value Chain framework is to
identify the importance of activities according to their role in product/service delivery process.
Here is the list of primary value chain activities as proposed by Porter:
Primary Activities
Inbound logistics - Developed catering system6ntryvalrystitution
- Route selection
- System that sets pricing
- Scheduling logistics
- Private terminal for fuel storage

- Aircraft purchasing (Emirates, 2017)
Operations - Ticket operations
- Check in service
- Information desk
- Boarding services (Emirates, 2017)
- Lounge locations (Emirates, 2017)
- Baggage and cargo services
- On-board services (Emirates, 2016)
Outbound logistics - Baggage and cargo system
- Connecting flights system (Emirates, 2017)
- Rental car and hotel system (Emirates, 2017
Marketing and
sales
- Various slogan promotion
- Pricing strategy
- Promotion of various campaigns
- Obtained awards (Emirates, 2017)
- Advertising of outstanding service & highest quality products
- Advantage programs
- Celebrity endorsement (DailyMail, 2015)
Service - Lost cargo service
- Customer service to deal with issues (Emirates, 2017)
- Emirates hotels and resorts
Support Activities:
Firm
Infrastructure
- Government support (financial & political) (Emirates, 2017)
- Differentiation strategy based on exceptional service and product quality
- Reputation and multiple awards (Emirates, 2017)
- Training centre (Emirates, 2017)
- Standardised aircrafts (Emirates, 2017)

- Accounting, legal, administrative, and general management
Human resource
management
- Highly skilled pilots, staff and other workers
- Bad HR practices (Kiedis, 2017)
- Accommodation and transport allowance
- Advanced training (Emirates, 2017)
Technological
development
- In-house innovation and research centre
- In-flight entertainment systems
- Aircrafts that are more fuel efficient
- Online ticket services
- Flight scheduling
- Baggage tracking systems
- Devices that ensure high security
Procurement
(purchasing)
- Fuel handling operations
- Catering system procurement (Emirates, 2017)
- Information and communications
Competencies Framework: Distinction between threshold and distinctive resources & competencies
will be identified using Competency framework.
Threshold
Resources
- Reliable products and services
- Wide range of available destinations
- Developed catering system
- Fuel storage & handling operations
- Boarding services
- Baggage and cargo system
- Ticket operations
- Information desk
- Lost baggage or cargo service
- Below average customer service to deal with issues (ConsumerAffairs, 2017)

- In-Flight Entertainment
Threshold
Competencies
- Pricing strategy
- Quality control
- Research skills
- Ongoing development
- Ability to supply the demand
- Good HR practices
Distinctive
Resources
- Premium lounges
- High quality products and services
- Reputation
- Modern aircrafts
- Advanced training facility
- Slogans such as ”Fly Emirates”, ”Meet Dubai” and “Hello Tomorrow”
- Distinctive functionality combined with design
- Many features and on-board services
- Celebrity endorsement
- Government support (financial & political)
- Risky growth plan purchasing new aircraft (Emirates, 2017)
Distinctive
Competencies
- Unique differentiation strategy
- Advantage program
- Ongoing CSR campaigns
- Technical capabilities
- Expertise in industry
- Ability to innovate
- Ability to provide exceptional service
2. VRIN/VRIO framework:

Appraisal of the Resources & Competencies
Valuable Rare Inimitable Organized Competitive
implications
Reliable and high quality
products and services
Yes No No Yes Competitive Parity
Wide range of available
destinations
Yes Yes Yes Yes Sustainable
Competitive
Advantage
Developed catering system Yes No No No Competitive Parity
Below average customer
service to deal with issues
No No No No Competitive
Disadvantage
Premium lounges Yes Yes Yes Yes Sustainable
Competitive
Advantage
Good reputation and brand
image
Yes Yes Yes Yes Sustainable
Competitive
Advantage
Modern aircrafts Yes Yes Yes Yes Sustainable
Competitive
Advantage
Advanced training
facility
Yes Yes Yes Yes Sustainable
Competitive
Advantage
Boarding services Yes No No No Competitive Parity
Ability to innovate Yes Yes No No Temporary
Competitive
Advantage
Advantage program Yes Yes No Yes Temporary
Competitive
Advantage
Financial and political Yes Yes Yes Yes Sustainable
Competitive

government support Advantage
In-Flight Entertainment Yes Yes No Yes Temporary
Competitive
Advantage
3. Strengths and Weaknesses:
The main strength is support from the government, being able to use Dubai’s airport allows the
company access to a lot of customers. The fact that the government is interested in the success of the
company and creates regulations to prevent competition from damaging the company is very beneficial.
The main weaknesses of the company are following unsustainable future growth plan. Emirates have
purchased over 40 new planes to be used in future but this seems overly ambitious move. (Emirates,
2017). The high employee turnover rates and bad reviews from customers.
Strengths
Weaknesse
s Strengths
Weaknesses
- Wide range of available destinations that increase
the amount of potential customers
- Premium lounges that appeal to customers
looking for comfort throughout their journey
- Modern aircrafts that increase comfort, safety
and is more cost efficient
- Good overall reputation and brand image that
increases brand awareness and persuades
customers to choose Emirates over their
- The airline has to face strong competition
- All the exceptional quality standards for goods
and services have high costs
- Risky growth plan, purchasing 40 new planes
- Focused primarily on premium travel segment
- Multiple bad reviews that indicate poor customer
service (ConsumerAffairs, 2017)
- Complaints from staff and high employee

competitors
- Advanced training facility allows to train staff up
to higher standards than competition
- Financial and political government support gives
various benefits
- Ability to finance further expenditure
- Expertise in industry
turnover rate (Maceda, 2014)
III. Conclusion:
With the analysis in this assignment, we can see with a clearly defined and rigorous value chain
model. Emirate aviation is making strong strides in the aviation industry. According to personal
assessment, flight services are in a saturated direction, Emirate needs to have more bold and innovative
operation strategies to take advantage in this one of the most competitive market.

IV. Reference:
Emirates. (2016). Cabin Features. [online] Available at:
https://www.emirates.com/in/english/experience/cabin-features/economy-class.aspx [Accessed 28 Dec.
2017].
Emirates. (2017). Emirates Flight Training Academy officially inaugurated. [online] Available at:
https://www.emirates.com/media-centre/emirates-flight-training-academy-officially-inaugurated
[Accessed 1 Jan. 2018].
Emirates. (2017). About Emirates. [online] Available at:
https://www.emirates.com/english/about/[Accessed 28 Dec. 2017].
Emirates. (2017). Online Bookings | Payment Methods | About booking online | Emirates United
Arab Emirates. [online] Available at: https://www.emirates.com/ae/english/book/about-booking-
online/online-bookings.aspx [Accessed 30 Dec. 2017].
Emirates. (2017). Emirates Group Announces 2016-17 results. [online] Available at:
https://www.emirates.com/media-centre/ek-newsroom-emirates-group-announces-2016-17-results
[Accessed 31 Dec. 2017].
Emirates. (2017). Emirates growth strategy on track. [online] Available at:
https://www.emirates.com/media-centre/emirates-growth-strategy-on-track [Accessed 31 Dec. 2017].
Emirates. (2017). Emirates places US$15.1 billion order for 40 Boeing 787 Dreamliners at 2017 Dubai
Airshow. [online] Available at: https://www.emirates.com/media-centre/emirates-places-us151-billion-
order-for-40-boeing-787-dreamliners-at-2017-dubai-airshow [Accessed 31 Dec. 2017].
Emirates. (2017). Emirates Wins Best Airline Worldwide at the 2017 Business Traveller Awards.
[online] Available at: https://www.emirates.com/media-centre/emirates-wins-best-airline-worldwide-at-
the-2017-business-traveller-awards-in-a-sweep-of-four-awards [Accessed 31 Dec. 2017].

Emirates. (2011). Environmental Report. [online] Available at:
https://www.emirates.com/english/images/The%20Emirates%20Group%20Environment
%20Report_tcm233-701728.pdf [Accessed 29 Dec. 2017]