Jetblue Vrio
VRIO ANALYSIS
Barney and Hesterly (2006), describe the VRIO framework as a good tool to examine the internal environment of a firm. They state that VRIO “stands for four questions one must ask about a resource or capability to determine its competitive potential:
1. The Question of Value: Does a resource enable a firm to exploit an environmental opportunity, and/or neutralize an environmental threat? 2. The Question of Rarity: Is a resource currently controlled by only a small number of competing firms? [are the resources used to make the products/services or the products/services themselves rare?] 3. The Question of Imitability: do firms without a resource face a cost disadvantage in obtaining or developing it? [is what a firm is doing difficult to imitate?] 4. The Question of Organization: Are a firm’s other policies and procedures organized to support the exploitation of its valuable, rare, and costly-to-imitate resources?”
ORGANIZATION : AIRLINE INDUSTRY – JETBLUE
RESOURCES | CAPABILITIES | CORE COMPETENCIES | In-Flight Entertainment | JFK Airport hub: hub provides significant size and location capabilities political support from the state government | Firm’s infrastructure: Hierarchical and family oriented business, quality control, financial control, significant process improvements, skilled management personnel, licensing with third party manufacture. | Assigned Seating | Airline Fleet : owned solely by the firm, Airbus is the main provider of these aircraft, These advantages include better fuel efficiency, more cabin space, and better cabin technology. | Procurement: acquisition of resource, efficient use of its economies of scale by outsourcing vertically integrated strategies and processes. | The Customer Bill of Rights | I.T./Operations: JetBlue is proud of their nearly “paper-less” operations, e-ticketing. All pilots of are provided with laptops to handle flight plans, checklists, and manuals |
Barney and Hesterly (2006), describe the VRIO framework as a good tool to examine the internal environment of a firm. They state that VRIO “stands for four questions one must ask about a resource or capability to determine its competitive potential:
1. The Question of Value: Does a resource enable a firm to exploit an environmental opportunity, and/or neutralize an environmental threat? 2. The Question of Rarity: Is a resource currently controlled by only a small number of competing firms? [are the resources used to make the products/services or the products/services themselves rare?] 3. The Question of Imitability: do firms without a resource face a cost disadvantage in obtaining or developing it? [is what a firm is doing difficult to imitate?] 4. The Question of Organization: Are a firm’s other policies and procedures organized to support the exploitation of its valuable, rare, and costly-to-imitate resources?”
ORGANIZATION : AIRLINE INDUSTRY – JETBLUE
RESOURCES | CAPABILITIES | CORE COMPETENCIES | In-Flight Entertainment | JFK Airport hub: hub provides significant size and location capabilities political support from the state government | Firm’s infrastructure: Hierarchical and family oriented business, quality control, financial control, significant process improvements, skilled management personnel, licensing with third party manufacture. | Assigned Seating | Airline Fleet : owned solely by the firm, Airbus is the main provider of these aircraft, These advantages include better fuel efficiency, more cabin space, and better cabin technology. | Procurement: acquisition of resource, efficient use of its economies of scale by outsourcing vertically integrated strategies and processes. | The Customer Bill of Rights | I.T./Operations: JetBlue is proud of their nearly “paper-less” operations, e-ticketing. All pilots of are provided with laptops to handle flight plans, checklists, and manuals |
Bibliography: (n.d.). Retrieved july 28, 2013, from http://www.ukessays.com/essays/management/strategic-capability-and-position-of-jet-blue-management-essay.php (n.d.). Retrieved july 28, 2013, from http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irol-newsArticle&ID=1833045 (n.d.). Retrieved july 28, 2013, from http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irol-newsArticle&ID=1257193&highlight=