Dunkin Donut is one of the world’s biggest leading coffee chain and baked stuff. The company serves to over 3 million consumers regularly. Dunkin Donuts provide more than 50 varieties of donuts and dozens of beverages, breakfast sandwiches, bagels and baked items. It was founded by Bill Rosenberg in 1950 in Quincy MA, and after five years its franchise legacy started. The company do everything for the consumers. It prioritizes its customers that is why its chefs create different exciting flavors and drinks (Dunkin Donuts, 2020).
VRIO Analysis of Dunkin Donuts
VRIO framework is an analytical tool which is used for analyzing the resources and capabilities of the company. These resources enable the company to achieve sustained competitive advantage which is beneficial for the company. VRIO stands for Value, Imitability, rarity, and organization. Here is the detailed VRIO analysis of Dunkin Donuts.
Value
This is the first component of the VRIO framework. Valuable resources are the assets of the company which enables it to exploit strengths and mitigating the threats. The company uses capabilities and resources for the benefits of the company. Such valuable resources help the company in achieving competitive parity. The franchise business model of Dunkin donut is highly valuable. The coffee chain focuses on prices of the product which are highly appealing to Average Americans. Dunkin Donuts successfully attracts huge market share due to its affordable prices and breakfast. Life is fast these days and people prefer convenience and efficiency; hence, Dunkin Donuts provide drive-thru service. It is appealing to the customers and wants the item quickly (Google site, 2020).
Rarity
Rarity of the resources and capabilities for the company is very important. This means resources should be owned by few companies. If the resources will not be rare, every company will use it in their own benefits. Dunkin Donuts is a brand which provide quick service coffee in low prices. This is a rare resource as many other coffee chains offers one or two of such qualities. Its strong presence in U.S and in other countries is rare as small coffee chains cannot have such strong presence. The niche market of Dunkin Donuts is rare as the company appeals to lower income class. As these demographics are ignored by many coffee chains (Google site, 2020).
Imitability
Imitability is the third component of the VRIO model, as this helps the company in protecting its resources and capabilities for its own benefits. The resources are required to be difficult to imitate in terms of cost or substitution. The brand image that Dunkin Donuts created in a short span of time which is very difficult to imitate by other coffee chains. However, the expansion strategy of the Dunkin Donuts is easy to imitate, and coffee houses can easily opt for that. Moreover, the brand consistently works towards its vision, which makes them standing odd one out with their soft donuts and decaffeinated flavors of coffee (Slade, 2012).
Organization
It is the fourth and last component of the VRIO model. Organizing and managing the resources is very important as it will help the company in achieving sustained competitive advantage. If the resources will not be organized, the company will not be able to gain the benefits of competitive advantage for long run. Dunkin donuts efficiently manage its coffee chains and employees very well. Its operations are very well managed and fast. The brand is looking forward to providing quality service effectively and provide the convenience to its customers. The company is successfully exploiting the capability of growing to every part of the world (Google site, 2020).
Conclusion
Dunkin Donut is one of the leading coffee chain house across the globe which targets the niche market. The company offers low and reasonable prices to its customers so that all the people can taste it. The coffeehouse’s franchise strategy is very successful.
| Resources/Capabilities | V | R | I | O | |
| Market share | ✓ | ✓ | ✓ | ✓ | Sustained Competitive advantage |
| Pricing | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Brand Equity | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Marketing | ✓ | ✓ | ✓ | ✓ | Sustainable advantage |
| Product quality | ✓ | ✓ | ✓ | Sustainable advantage | |
| Product range | ✓ | ✓ | Sustainable advantage |
References
Dunkin Donuts, 2020. About us. [Online], Available at: https://www.dunkindonuts.com/en/about/about-us, [Accessed on: 8th May, 2020].
Google site, 2020. VRIO analysis- Dunkin Donuts. [Online], Available at: https://sites.google.com/site/starbucksanddunkindonuts/business-strategy/vrio-analysis, [Accessed on: 8th May, 2020].
Google site, 2020. VRIO analysis. [Online], Available at: https://sites.google.com/site/starbucksversusdunkindonuts/vrio-analysis, [Accessed on: 8th May, 2020].
Slade, T. 2012. Dunkin Donuts. [Online], Available at: file:///C:/Users/CC/Dropbox/Business%20Law/Dunkin.pdf, [Accessed on: 8th May, 2020].