Marriott International VRIO Analysis and Value Chain
Distinctive Competencies
The VRIO analysis is helpful in determining if a resource or capability leads to
competitive advantage (Middleton, 2004).
Resources/Capabilities Valuable? Rare? Costly to Imitate? Exploited by Organization Competitive Implications Strength or Weakness
Key Account Management Initiative Yes Yes Yes Yes Sustained Competitive Advantage Strength and Sustainable Distinctive Competence
Recruitment Process Yes Yes No No Temporary Competitive Advantage Strength and Distinctive Competence
Brand Loyalty Yes Yes Yes Yes Sustained Competitive Advantage Strength and Sustainable Distinctive Competence
Community Involvement Yes No No No Competitive Parity Strength
Employee Loyalty Yes Yes Yes Yes Sustained Competitive Advantage Strength and Sustainable Distinctive Competence
Marriott has a few distinctive competencies that are the driving force in their company. Superior efficiency is evident in their personnel. Marriott has been named by Fortune Magazine as on of the "100 Best Companies to Work For" and one of the "Top 50 Companies for Minorities" (Marriott is, 2004). They are also very concerned with minimizing employee turnover because of the high costs associated with training new employees. Their recruitment process screens out people motivated by money, and focuses on people who are motivated by recognition (Have, 1991).
Superior responsiveness can be seen in their key account management incentive the company has in place. Marriott noticed that travel and entertainment expense is the third largest expense in corporations. This management incentive allows Marriott to focus on their potential customers and gain customer loyalty (Millman, 1996).
One of the intangible resources that Marriott has is its reputation. Not just their reputation with customers, but also their reputation with the community. The Marriott brand is a valuable resource. It is estimated that by adding the Marriott name to Fairfield Inn increased occupancy rates by 15%.
The VRIO analysis is helpful in determining if a resource or capability leads to
competitive advantage (Middleton, 2004).
Resources/Capabilities Valuable? Rare? Costly to Imitate? Exploited by Organization Competitive Implications Strength or Weakness
Key Account Management Initiative Yes Yes Yes Yes Sustained Competitive Advantage Strength and Sustainable Distinctive Competence
Recruitment Process Yes Yes No No Temporary Competitive Advantage Strength and Distinctive Competence
Brand Loyalty Yes Yes Yes Yes Sustained Competitive Advantage Strength and Sustainable Distinctive Competence
Community Involvement Yes No No No Competitive Parity Strength
Employee Loyalty Yes Yes Yes Yes Sustained Competitive Advantage Strength and Sustainable Distinctive Competence
Marriott has a few distinctive competencies that are the driving force in their company. Superior efficiency is evident in their personnel. Marriott has been named by Fortune Magazine as on of the "100 Best Companies to Work For" and one of the "Top 50 Companies for Minorities" (Marriott is, 2004). They are also very concerned with minimizing employee turnover because of the high costs associated with training new employees. Their recruitment process screens out people motivated by money, and focuses on people who are motivated by recognition (Have, 1991).
Superior responsiveness can be seen in their key account management incentive the company has in place. Marriott noticed that travel and entertainment expense is the third largest expense in corporations. This management incentive allows Marriott to focus on their potential customers and gain customer loyalty (Millman, 1996).
One of the intangible resources that Marriott has is its reputation. Not just their reputation with customers, but also their reputation with the community. The Marriott brand is a valuable resource. It is estimated that by adding the Marriott name to Fairfield Inn increased occupancy rates by 15%.
References: Barney, J. (2002). Gaining and Sustaining Competitive Advantage. New Jersey: Prentice Hall Friday, D. and Smolova, K. (2004, Feb. 1). Focus: The rise of facility management. Prague Tribune. Retrieved July 15, 2004 from http://galenet.galegroup.com Have a nice day Habitat for Humanity '. (2004, May 19). PR Newswire. Retrieved July 15, 2004 from http://galenet.galegroup.com Marriott is Most Admired Company in the Lodging Industry according to Fortune. (2004, Feb. 26). PR Newswire. Retrieved July 15, 2004 from http://galenet.galegroup.com Marriott receives Global Services Leadership Award Retrieved July 15, 2004 from http://galenet.galegroup.com Marriott testing lobby kiosks Journal of Marketing Practice. Retrieved July 15, 2004 from http://0-oberon.emeraldinsight.com. Purchasing. (2004) Retrieved July 15, 2004 from http://marriott.com/development/lodgingPurchasing.mi Serlen, B. (2004, May 10). New Brands, Tech Transform Lodging. Business Travel News Tepeci, M. (1999). Increasing brand loyalty in the hospitality industry. International Journal of Contemporary Hospitality Management