Question 2 The Resource-Based View (RBV) theories of organization present on how best to capture and keep competitive advantage—that is, how best to manage strategically. Please read below Dunkin’ Donut VRIO analysis. Coffee for the "Average American" Valuable: Dunkin' Donuts focuses on products and prices that are appealing to the "Average American". By selling common coffee and breakfast items that are priced affordably, Dunkin' Donuts is able to attract a large market share. Rare: Many coffee companies focus on top-quality products, but this also results in higher prices. Dunkin' Donuts' niche in the market is rare because they are trying to appeal to a lower income demographic that is sometimes ignored in the coffee industry. Inimitable and Non-Substitutable: Any coffee shop could choose to start selling cheaper, more basic products and this transition could also be done relatively quickly. Therefore, this capability could be imitated. Organized to Exploit: Dunkin' Donuts is successfully taking advantage of this capability by offering low prices and a large variety of products. Convenient Drive-thru Services Valuable: Many Americans are very busy and appreciate anything that improves the efficiency and convenience in their daily lives. Offering a drive-thru service is very valuable for Dunkin' Donuts because it helps them appeal to customers who prefer to stay in their cars and get their items as quickly as possible. Rare: Many coffee shops are located in cities or other locations where they could not have a drive-thru. Also, most high-end coffee shops do not offer drive-thrus because it would take away from the upscale ambiance they are trying to achieve. By offering drive-thru services, Dunkin' Donuts is provided a rare service to customers. Inimitable and Non-Substitutable: In order for other coffee shops to start providing drive-thrus, they would need to more many of their locations and rebuild aspects of others. This would not be realistic on a short-term basis, meaning that this capability is inimitable. Organized to Exploit: Dunkin' Donuts offers drive-thru services at the majority of their locations. Therefore, the company is successfully exploiting this capability and gaining the share of the market that prefers convenience. Very Strong Presence in the Eastern U.S.A. Valuable: Having a very strong presence in one area allows customers to become very familiar with the company and the products it offers. When there are many locations around, they have more opportunities to go there. In the eastern U.S. there are Dunkin' Donuts everywhere, which is very valuable as it helps the company to gain market share. Rare: Dunkin' Donuts' strong presence in the eastern U.S. is also rare because many smaller coffee chains do not have such an established presence. Most coffee chains have far fewer locations and do not compare to the share size and abundance of Dunkin' Donuts in the eastern U.S. Inimitable and Non-Substitutable: Other coffee chains could expand their companies or move locations to build a stronger presence in the eastern U.S. Therefore, this capability could be imitated. Organized to Exploit: Since Dunkin' Donuts has a very strong presence in the eastern U.S. and they continue to expand, they are successfully exploiting this capability. a) Answer “Yes or No” in columns (A), (B), (C) and (D). And hypothesize on the impact on Competitive Advantage based on the 3 resources in column (E). Resources or Capability Valuable (A) Rare (B) Inimitable and Non-Substitutable (C) Organized to Exploit (D) Impact on Competitive Advantage (E) Coffee for the "Average American" Convenient Drive-thru Services Very Strong Presence in the Eastern U.S.A. b) Recommend 3 OPERATIONAL STRATEGIES for Dunkin’ Donuts
Question 2
The Resource-Based View (RBV) theories of organization present on how best to capture and keep competitive advantage—that is, how best to manage strategically.
Please read below Dunkin’ Donut VRIO analysis.
Coffee for the "Average American"
Valuable: Dunkin' Donuts focuses on products and prices that are appealing to the "Average American". By selling common coffee and breakfast items that are priced affordably, Dunkin' Donuts is able to attract a large market share.
Rare: Many coffee companies focus on top-quality products, but this also results in higher prices. Dunkin' Donuts' niche in the market is rare because they are trying to appeal to a lower income demographic that is sometimes ignored in the coffee industry.
Inimitable and Non-Substitutable: Any coffee shop could choose to start selling cheaper, more basic products and this transition could also be done relatively quickly. Therefore, this capability could be imitated.
Organized to Exploit: Dunkin' Donuts is successfully taking advantage of this capability by offering low prices and a large variety of products.
Convenient Drive-thru Services
Valuable: Many Americans are very busy and appreciate anything that improves the efficiency and
convenience in their daily lives. Offering a drive-thru service is very valuable for Dunkin' Donuts because it helps them appeal to customers who prefer to stay in their cars and get their items as quickly as possible.
Rare: Many coffee shops are located in cities or other locations where they could not have a
drive-thru. Also, most high-end coffee shops do not offer drive-thrus because it would take away from the upscale ambiance they are trying to achieve. By offering drive-thru services, Dunkin' Donuts is provided a rare service to customers.
Inimitable and Non-Substitutable: In order for other coffee shops to start providing drive-thrus,
they would need to more many of their locations and rebuild aspects of others. This would not be
realistic on a short-term basis, meaning that this capability is inimitable.
Organized to Exploit: Dunkin' Donuts offers drive-thru services at the majority of their locations. Therefore, the company is successfully exploiting this capability and gaining the share of the market that prefers convenience.
Very Strong Presence in the Eastern U.S.A.
Valuable: Having a very strong presence in one area allows customers to become very familiar with the company and the products it offers. When there are many locations around, they have more opportunities to go there. In the eastern U.S. there are Dunkin' Donuts everywhere, which is very valuable as it helps the company to gain market share.
Rare: Dunkin' Donuts' strong presence in the eastern U.S. is also rare because many smaller coffee
chains do not have such an established presence. Most coffee chains have far fewer locations and
do not compare to the share size and abundance of Dunkin' Donuts in the eastern U.S.
Inimitable and Non-Substitutable: Other coffee chains could expand their companies or move
locations to build a stronger presence in the eastern U.S. Therefore, this capability could be
imitated.
Organized to Exploit: Since Dunkin' Donuts has a very strong presence in the eastern U.S. and
they continue to expand, they are successfully exploiting this capability.
- a) Answer “Yes or No” in columns (A), (B), (C) and (D).
And hypothesize on the impact on Competitive Advantage
based on the 3 resources in column (E).
|
Resources or Capability |
Valuable (A) |
Rare (B) |
Inimitable and Non-Substitutable (C) |
Organized to Exploit (D) |
Impact on Competitive Advantage (E) |
|
Coffee for the "Average American"
|
|
|
|
|
|
|
Convenient Drive-thru Services |
|
|
|
|
|
|
Very Strong Presence in the Eastern U.S.A.
|
|
|
|
|
|
- b) Recommend 3 OPERATIONAL STRATEGIES for Dunkin’ Donuts
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
