VRIO Framework

VRIO framework of Abu Dhabi National Oil Company Value:

In recent times, ADNOC has been very successful in increasing its domestic r eserve base and production. During 2013 alone, ADNOC produced 2.8 million barrels per day while targeting it to 3.6 bpd by 201 7. These reserves coupled with high tec hnology refineries will increase PBR’ portfolio. Rarity:

Oil and Gas are the r arest of the resources and ADNOC being a fully government owned company with 95.6% of UAE’s oil and gas production makes it difficult for compet itors to acquire new oil wells, however governmental norms in UAE also play a major role in ADNOC’s competitive advantage. Imitatively:

The technology and the amount of capital nee ded, the scarcity of resources make it difficult for competitors to imitate in such a big industry. Organization: A firm’s other policies and procedures organized to support the exploitation of its valuable, rare, and

costly-to-imitate resources? The organizational structure and ADNOC’s policies are not rare as there are other major players like British Petroleum, Dolphin Energy which have valuable and rare organizational structure and policies. VRIO Analysis (Scale 1 – 10, 1 lowest and 10 highest in rank): Resource / Capabilities

OPERATIONAL EXCELLENCE GEOGRAPHIC ACCESS TO MARKET SELLING POWER MARKETING PRODUCT PRICE REFINIERIES TECHNOLOGY TO FIND RESERVES STORAGE TRANSPORTATION OIL/WELL RESERVES

Value

Rare / Scarce

10 10 9 9 9 10 8 10

8 10 10 9 10 10 10 10

Easy to Imitate

3 3 2 3 4 6 7 3

Organized to Exploit

6 1 2 2 2 2 3 2

Note: For value 10 – 1 means highest – lowest, for Rare 10 – 1 means the highly rare – not so rare, for Ease to Imitate 10 – 1 means very easy – not so easy, for Organized to Exploit 10 – 1 means difficult to exploit – easy to exploit.

VRIO framework of Dolphin Energy Value:

Less oil and gas reserves as compared to ADNOC. Dolphin Energy has state of art t echnology for upstream and downstream operations. In UAE the company however emphasizes more on downstream operations. Rarity: The resource is rare but the company doesn’t have much share in oil and gas reserves of UAE. Imitatively:

The technology and the amount of capital needed, t he scarcity of resources make it difficult for competitors to imitate in such a big industry. Organization: A firm’s other policies and procedures organized to support the exploitation of its valuable, rare, and

costly-to-imitate resources? The organizational structure and Dolphin’s policies are the best in the market. The company spends substantial amount on training and development. VRIO Analysis (Scale 1 – 10, 1 lowest and 10 highest in rank):

Resource / Capabilities

OPERATIONAL EXCELLENCE GEOGRAPHIC ACCESS TO MARKET SELLING POWER MARKETING PRODUCT PRICE REFINIERIES TECHNOLOGY TO FIND RESERVES STORAGE TRANSPORTATION OIL/WELL RESERVES

Value

Rare / Scarce

10 9 7 6 6 9 10 5

3 3 3 3 3 9 10 5

Easy to Imitate

3 6 7 9 7 5 1 10

Organized to Exploit

2 8 8 9 9 9 2 9

Note: For value 10 – 1 means highest – lowest, for Rare 10 – 1 means the highly rare – not so rare, for Ease to Imitate 10 – 1 means very easy – not so easy, for Organized to Exploit 10 – 1 means difficult to exploit – easy to exploit.