Question

Please expand on all points on this VRIO analysis for Delta Airlines: VRIO analysis of Delta Airlines: Valuable – Delta Airlines has strong financial resources and capabilities. It is optimally leveraging its organizational resources with the help of strategic alliances. Delta’s alliance with SkyTeam has helped it gain a handsome global market share. It is also increasing its capability for diversification. Diversification of its economic activities is helping Delta to sustain its competitive advantage in the market. Rare – The resource that is rare is Delta’s information technology capabilities. The airline company has a large customer database and it uses management information system and IT (information technology) capabilities to optimally meet the demands of its customers. It also helps in enhancing the customer’s experience significantly. Inimitable – It will be costly for the competition to imitate Delta’s resources like its marketing capabilities and its physical resources. Airport installations of Delta are also inimitable or rather costly to imitate. Delta’s airport facilities are top class and this augments the experience of its customers. Organized to capture value – Delta gets is competitive advantage, on a sustainable basis, from its strategic fusions and human resource management capabilities.

Answer 1

VRIO Analysis for Delta Airlines

VRIO stands for Valuable, Rareness, Imitability & Organization

• Valuable:

What is valuable here for delta airlines is its strong financial resources. Its alliance with sky team has helped it in gaining a very good market share. It is also increasing its capability by going for diversification of economic activities has helped it I gaining competitive dvantage.

• Rareness:

The rare resources for delta airlines is its information technology resources. It has a very large customer database, a very good management information system and also information technology to meet the demand of its customers which also provides a very good experience to its customers.

• Inimitability:

Delta’s resources are very expensive for the competitors to imitate. Like its marketing capabilities and physical resources are not possible for its competitors to copy. The airport installations and also the facilities provided by the airport are high class which provides a very good experience to its customers.

• Organization:

Organization which is the last one in VRIO analysis. This is the existing resource in the organization and how the organization can use it effectively. In this case, delta analysis has a very good physical resources and marketing capabilities as well. The physical resources can be effectively used by investing it for the growth opportunities of the organization or for any useful activities, provide some resources for its CSR etc. marketing capabilities can be used effectively by developing new ideas for marketing or by developing good relationship with the public to increase its name in the public.