VRIO model is a marketing analytical tool, which is used by the company for determining the capabilities and resources. These resources will help the company in exploiting the resources for creating competitive advantage for the company. The four components of the model are: Value, Rarity, Imitability, and Organization. Here is the detailed VRIO analysis of Bombardier.

Value

This is the first component of the VRIO analysis. This determines the valuable resources of the company that adds value. The company can exploit these resources to gain competitive advantage over competitors, which results in availing more opportunities. The company can strengthen its position and increase the market share. Bombardier is a global leader in the industry and this brand equity and market share is the valuable resource for the company. The company is famous for its technological advancement and innovation which is highly valuable. These resources help the company in achieving highest market growth rate (Chen, 2015).

Rarity

The rarity is the second component which deals in determining the rare resources and capabilities. Resources which are not that common or available with only few companies, it will be beneficial, or else every company will use it according to their own expertise. The corporate strategies of Bombardier are rare and valuable, as company is leading the industry and achieving its objectives. The innovation techniques and creativity are also rare, as competitors like Boeing are working hard to be on the top position, but Bombardier is retaining its position very well. The company’s strategy of localization, low-cost production, differentiation strategy, etc. are well appreciated.
Imitability

This component determines the resources and capabilities to be difficult to replicate or costly to possess. The resources which are not easy to duplicate becomes beneficial for the company, as it can take advantage of it. Moreover, imitability along with rarity and value, it will help the company in achieving competitive advantage. The resources of the Bombardier company like strong financial performances, brand equity, technological advancement, customer service, production facilities, low manufacturing costs, and many others are costly to imitate. The company’s R&D department is highly efficient and skilled which brings new and innovative products.

Organization

The resources and capabilities need to be organized by the company or else the competitive advantage will not be for long run. To attain the sustained competitive advantage, it is important to achieve all four components of the model. Bombardier is a well organized and well-equipped company, which make sure to hire trained and skilled employees. The company has diverse nationality employees who are motivated and devoted. The company also improve its supply chain to have fast network and distribution channels. Moreover, it is working along with its objectives and goals. The roles and positions are well-defined along with organizational structure and hierarchy (Chen, 2015).

Conclusion

Bombardier is a global leader in the industry. The company has achieved sustained competitive advantage in order to retain its position. The company is growing and maintaining the market growth. The company is well-equipped and have motivated team which helps it in achieving sustained advantages for log run.

References

• Bombardier, 2020. About us. [Online], Available at: https://www.bombardier.com/en/about-us.html, [Accessed on: 30th March, 2020].
• Chen, X. 2015. Bombardier Inc. strategy analysis. [Online], Available at: https://www.slideshare.net/XingyueLiaChen/bombardier-inc-strategy-analysis-group-6, [Accessed on: 31st March, 2020].
• Perry, A. 2018. VRIO Analysis of Bombardier Aerospace. [Online], Available at: https://www.case48.com/vrio-case/17842-Bombardier-Aerospace-The-CSeries-Dilemma, [Accessed on: 31st March, 2020].

VRIO analysis is an internal analysis framework which helps the company in identifying the core competencies and competitive advantages in terms of resources and capabilities. The VRIO analysis is an acronym of Value, Rarity, Imitability, and Organization. Here is the detailed VRIO analysis of McDonalds.

Value

The first component of the VRIO analysis deals with the Value of the resources which helps the company in exploiting the environmental opportunities. It is necessary for the McDonalds to possess some sources of competitive advantage for attaining the value. The infrastructure with organization is one of a valuable source for McDonalds as it belongs to the fast-food industry. This is an effective resource company has in achieving higher value in business processes. Moreover, the human resource adds value in the efficiency of the fast-food chain. Employees prepare food and menu that attracts consumers. This clearly indicates that talented and skilled staff and sound infrastructure helps the McDonalds in achieving high value for the company (Lopez, 2019).

Rarity

The rarity component assesses the resource or capability company possess is whether rare or easily available in the market or in rivals. The rarity of the resources helps the company in achieving competitive advantage. McDonald has worked hard for years and successfully developed the brand reputation which is quite rare as no other competitor can enter in the market and develop such brand image in short span of time. McDonalds presence is almost in every country across the globe. This is rare and adds the efficiency in the competitiveness as other fast-food chains like burger king, etc. still not present in every part of the world. This enhances the overall effectiveness of the competitive advantage for McDonalds (Jiang, 2014).

Imitability

The question of the imitability determines the core competent of the company that whether it is imitable or not. The more difficult to imitate the resources will be for the rivals, the more efficient and advantageous it will be for the company. The brand image of McDonalds is very difficult to imitate for the rivals as it has developed it over a period of time and very strongly. The taste, menu, and recipes are difficult to imitate. McDonalds hamburgers and has browns are very famous across the globe. It is difficult for the new entrant to build that image and presence in the fast-food industry. Thus, it is difficult to imitate the core offerings of the McDonalds (Pratap, 2019).

Organization

This is the last question of the VRIO analysis which deals with the organized policies and procedures of the company for keeping the resources valuable, rare and difficult to imitate. McDonalds make sure to organization system and working structure efficient enough to achieve the maximum level of competitive advantage and growth opportunities. It maintains the high level of managerial efficiency and effectiveness to achieve the leading position. Its organizational structure and culture are well managed and maintained which becomes the primary contributing factor un accomplishing the overall success for the company.

Conclusion

Overall, VRIO analysis reveals the core competencies and competitive advantages of McDonalds, which are very crucial. This allows the fast-food chain in sustaining the leading position in the industry. McDonalds will be able to handle it technically to enjoy the benefits in the long run.

References

• Jiang, X. 2014. McDonald’s company analysis. [Online], Available at: https://www.slideshare.net/YanxinJiang/mcdonalds-company-analysis-33306069, [Accessed on: 17th March, 2020].
• Lopez, L. 2019. McDonald’s VRIO/VRIN Analysis & Value Chain Analysis (Resource-Based View). [Online], Available at: https://www.rancord.org/mcdonalds-vrio-analysis-core-competencies-competitive-advantages, [Accessed on: 17th March, 2020].
• McDonalds, 2020. About us. [Online], Available at: https://www.mcdonalds.com/us/en-us/about-us.html, [Accessed on: 17th March, 2020].
• Pratap, A. 2019. McDonald’s strategic analysis. [Online], Available at: https://notesmatic.com/mcdonalds-strategic-analysis/, [Accessed on: 17th March, 2020].
• Singh, V and Kaur, R. 2016. Strategic Analysis McDonalds in China. [Online], Available at: https://www.academia.edu/32379197/Strategic_Analysis-_McDonalds_in_China_W_o_r_d_C_o_u_n_t_-6095_4_2_5_2_0_1_6_SUBMITTED_BY_SUBMITTED_TO_Strategic_Analysis-McDonalds_in_China_MBA-General_Management_TABLE_OF_CONTENTS, [Accessed on: 17th March, 2020].

The article is about VRIO analysis of Coles. VRIO model is an analytical tool used for assessing and identifying the company’s resources and capabilities. There are four components of the framework: Value, Rarity, Imitability and Organization. To achieve sustained competitive advantage, it is necessary for the company to achieve all the components.

Value

This is the first component of the framework which questions that whether company possess valuable resources or not? As this helps in adding more value in the company operations. The valuable resources help the company with availing more opportunities. Coles’ store design is unique and valuable. It is very attractive, which helps it in attracting consumers. Moreover, the supermarket provides reduced prices to consumers with wide product range. The company’s online grocery facility provides it edge over competitors like Tesco, Metro, etc. The backward integration of Coles with raw vegetables and fruit providers is also a valuable resource. This adds more value in the business operations of Coles (My assignment, 2020).

Rarity

Company should have rare resources for achieving the competitive advantage. Resources and capabilities which are rare, and not easily accessible to competitors are unique, and beneficial for the company. The valuable and rare resources help the company in achieving comparative parity. Coles deliver fresh vegetables and fruits to its customers, which is considered as rare capability among competitors. Coles Organics is the unique brand providing services of fresh dairy products, vegetables, fruits and meat. These products do not make use of any chemicals, pesticides, fertilizers for growing crops or animals. Coles Simply less is designed for the health-conscious people and has high market share in the industry (Sandeep, 2012).

Imitability

Resources and capabilities have to be costly so that no other competitor can replicate it. Moreover, the resources should be hard to imitate or find the substitute. It is necessary for the company to achieve such capabilities and resources. The company should make its operations, procedures, or ingredients etc which make it distinct. In the business segment where Coles is operating, imitability rarely exist, as the industry works according to the competitors and retail sector. The value chain is the company exits with the Wesfarmers acquisition of Coles and this provides the major benefit to company. The company is culturally integrated (Sandeep, 2012).

Organization

It is necessary for the company to have organized system and structure. Companies who achieve valuable, rare, hard to imitate and organized resources can have sustained competitive advantage. It can enjoy different benefits in the industry, however, retaining the competitive advantage requires maintenance. Coles is one of a leading supermarkets in Australia, whose operations and systems are well-organized. The company has defined structures and policies. Its employees motivated workforce who are trained and skilled in their own expertise. The supply chain and distribution network of the company is well managed and work efficiently (Supply chain analysis, 2020).

Conclusion

Coles is one of a leading supermarket and retail chains in the Australian retail sector. The company has achieved sustained competitive advantage, which helps it in growing and achieving more benefits and opportunities. It is maintaining its customer base by providing good facilities.

References

• Coles, 2020. About us. [Online], Available at: https://www.colesgroup.com.au/about-us/?page=about-us, [Accessed on: 4th April, 2020].
• My Assignment Help, 2018. Internal Analysis of Coles Supermarkets [Online]. Available at: https://myassignmenthelp.com/free-samples/internal-analysis-of-coles-supermarkets, [Accessed on: 4th April, 2020].
• Sandeep, K. 2012. Analysis of the grocery industry Coles Supermarkets. [Online], Available at: https://www.academia.edu/4615254/Analysis_of_the_grocery_industry_Coles_Supermarkets, [Accessed on: 4th April, 2020].
• Supply chain analysis, 2020. [Online], Available at: https://supplychainanalysis.igd.com/retailers/coles, [Accessed on: 4th April, 2020].

The VRIO analysis of Uber greatly looks in the internal resources of the company to assess the sustained competitive advantage. This analysis mentions about the resources and the competitive advantage on every stage and component. It also analyzed the sustained competitive advantage, temporary competitive advantage, disadvantages and competitive parity. Here is the detailed VRIO analysis of Uber.

Value

The first component of the VRIO analysis is Value which determines how expensive are the resources and how frequently one can get it in the market? Uber greatly believes in creating value for the company as it offers the great convenience to drivers and riders. Uber has created its app with detailed routes, easy bookings, and navigation system for the consumers.

It also offers the automated payment system and estimated payment calculations. The company works hard to mitigate the disputes and risks on the local street and roads knowledge among drivers and riders. Uber also kept its prices low as compared to its competitors like Careem (Su Ng, 2016).

Rarity

This component of VRIO analysis deals with how rare or limited is the company resource is? In spite of the fact that Uber is facing high threats from the new entrants, many drivers prefer working with Uber because of the flexibility in timings without any fines. As compared to the traditional taxi system, where driver has to work for 13 hours, without any lease agreement and car rental facility.

Uber also provide the facility to its drivers to work both as Uber and taxi driver in order to utilize most of the time by picking more jobs. Uber also provide proper training and check all the security conditions before employing any driver (Sarker, 2018).

Imitability

This component determines the imitability of the company. Uber has invested much in the development of the business which is difficult and costly to imitate. The company has acquired these resources over a long period of time. Hence, competitors need huge capitalization to compete on the same level. Uber is highly dependent on its app unlike the traditional terms which deals in price wars and investment in promotion.

Uber requires huge investment and marketing and promotional techniques to relish on low level of competition. The company is successfully managing the application and works hard to fix all the bugs if occurs any (Su Ng, 2016).

Organization

This component deals with how well the company is organized and manages its resources efficiently to gain more competitive advantages. The main competitive advantage is the operational efficiency in the low regulatory expenditures. The company charges low fares which makes incumbents to start lobbying heavily.

However, company is successfully managing the application and its resources efficiently to gain the intended market share and growth. The network, GPS system, and other services offered by the company are highly managed and well organized (Edwards, 2018).

Conclusion

Uber is one of the successful companies in the industry managing its resources efficiently and gaining the competitive advantage through that. The company is successfully making its space in the industry and retaining its market share in the industry. Uber is competing in the industry to great extent and really focused on promotional techniques.

Uber is successfully working with the changing pattern of the society and provide ease to the consumers. The company is contributing positively with every component of VRIO analysis in the industry.

References

• Edward, H. 2018. VRIO Analysis of Uber. [Online], Available at: https://www.case48.com/vrio-analysis/13692-Uber, [Accessed on: 10th March, 2020].
• Sarker, P. 2018. Application of the Strategic Management Theories in Uber Bangladesh. [Online], Available at: https://www.slideshare.net/PanthoSarker/application-of-the-strategic-management-theories-in-uber-bangladesh-95498418, [Accessed on: 10th March, 2020].
• Su Ng, 2016. Uber Technologies Inc. as a Disruptive Innovation. [Online], Available at: https://www.academia.edu/31782167/Uber_Technologies_Inc._as_a_Disruptive_Innovation, [Accessed on: 10th March, 2020].
  Uber, 2020. About us. [Online], Available at: https://www.uber.com/bh/en/about/. [Accessed on: 10th March, 2020].

This article focuses on the VRIO analysis of Cemex. VRIO framework is an analytical tool which helps the company in availing competitive advantage for the company. There are four components of the framework, Value, rarity, imitability and organization.

Value

Value is the first component of the VRIO model. This deals with analysing the valuable resources and capabilities of the company. These valuable resources help the company in adding more value in the operations. Moreover, valuable resources help the company in availing more opportunities and mitigating the threats. Cemex is one of a big name in the industry. The competitive parity of Cemex exist because of valuable resources.

Cement s having high demand in USA, Asia, and Mexico as the demand of the construction is high there. Moreover, the product quality highly matters in case of Cemex. The expansion strategy of the company is highly valuable as it has acquired several other businesses in different countries (Taylor, 2019).

Rarity

Rarity is the second component of the VRIO analysis. The resources and capabilities that are available with the few or limited organization, it will be rare and unique. The rare and valuable resources together help the company in avoiding the threats to the company, but it will be for short run, as competitors will identify it and then imitate it.

Cemex has achieved temporary competitive advantage by making its resources rare and valuable. Cemex main product like Cement is a common commodity. The expansion strategy is also not that rare, but its financial performance is strong along with technological resources (Hernandez, 2015).

Imitability

Imitability is the third component of the VRIO framework. This component emphasis on acquiring the unique and hard to imitate resources and capabilities. This can be done by having costly resources or resources whose substitute are difficult to find. This component along with valuable and rare resources help in achieving competitive advantage.

Cemex has achieved unused competitive advantage because of easy to imitate products. The cement manufacturing process and products are not unique. The cement industry is highly competitive as all rivals following same process and techniques for manufacturing. Moreover, it is not a market leader which gives the company exclusivity (Taylor, 2019).

Organization

This is the last and fourth component of VRIO analysis. This along with other three components help the company in achieving sustained competitive advantage. This is the long-term advantage for the company. The Cemex’s organization strategy is unique. Through the four steps, Cemex uses the resources to shorten the integration process as less than five months.

Cemex incorporates the foreign firms’ value in running business operations. The managerial activities are disrupted because experts of other firms were aiding the acquired firm for integrating into Cemex. Cemex way helps the company in acquiring firms globally and in expansion (Hernandez, 2015).

Conclusion

Cemex is one of a main player in the cement industry. It is able to achieve competitive advantage and availing benefits from it, but it is necessary for the company to focus on making hard to imitate resources. The company should work on its product range like ceramics, foams, glasses, etc.

References

• Cemex, 2020. About us. [Online], Available at: https://www.cemex.com/about-us/our-history, [Accessed on: 6th April, 2020].
• Hernandez, J. 2015. ANALYSIS OF CEMEX’S STRATEGIES AS DETERMINANTS FOR MARKET POWER. [Online], Available at: https://www.researchgate.net/publication/271020276_ANALYSIS_OF_CEMEX’S_STRATEGIES_AS_DETERMINANTS_FOR_MARKET_POWER, [Accessed on: 6th April, 2020].
• Taylor, J. 2019. Cemex analysis. [Online], Available at: https://www.essaytyping.com/cemex-analysis/, [Accessed on: 6th April, 2020].

The post VRIO Analysis of Cemex first appeared on Free PESTEL Analysis.]]> 1118 https://freepestelanalysis.com/vrio-analysis-of-canon/ Sat, 04 Nov 2023 09:00:01 +0000 https://freepestelanalysis.com/?p=1116 Canon Inc. is a Japan based multinational corporation which specializes in manufacturing of the optical and imaging products. This includes manufacturing of camcorders, cameras, TV broadcasting, professional displays, film equipment, photocopier, projectors, photolithography equipment, computer printers, binoculars, image scanners, medical equipment, microscopes, OLED panel, LCD, and many other equipment. It has around 383 subsidiaries which […]

VRIO framework is a business analysis model with four components. It helps in determining the competitive potential of the company. The components are Value, rarity, imitability, and organization. These components look for the answers to questions related to resources and capabilities, that are they unique, are they easy to duplicate, does company have right policies and system and can the company capture true value of these resources. Here is the detailed VRIO analysis of Cadbury.

Value

If the company has valuable resources and capabilities, it become beneficial to great extent. However, valuable resources along with other component can bring competitive advantage for the company. Company can only achieve competitive parity only with valuable resources. Cadbury is a big name in the industry, the company has identified new and best cocoa powder for its chocolates and products.

By being dissatisfied with the quality of the cocoa powder, it started to manufacture its own by undergoing in so many research. The packing of its chocolate has been altered and Cadbury has increased its capital investment in buying modern technology which uses pathogen systems (Ibrahim, 2017).

Rarity

The resources and capabilities which are not so common and easily accessible by other companies are rare. If the company is able to achieve rare and valuable resources, it is likely to achieve competitive advantage. However, this could not be for long run. Competitors in the industry can easily identify it and imitate it.

Dairy Milk is one of the most famous products of Cadbury. Its unique taste and quality have made it rare in the industry. The packaging of Dairy milk, purple and white has become a symbol and developed strong brand image among consumers. Moreover, the company’s cocoa products are rare and unique (Cadbury, 2020).

Imitability

Resources and capabilities which are difficult to imitate for the competitors, when they are too costly. Competitors will not be able to imitate, if the resources are protected by any legal means, like copyrights, trademarks, or patents etc. If the resources are rare, imitable, and valuable, it can be competitive advantage for the company. There are many competitors who tried hard to replicate the ingredients of the Cadbury chocolates, but because of its main ingredient i.e., cocoa powder, no competitor can copy it or beat it in the market share.

The global presence of the company is not hard to imitate, but too costly, as consumers across the globe want to buy Cadbury, but to competitors, intense marketing is required to create the awareness and publicity (UK essay, 2018).

Organization

The company’s resources are needed to be organized for capturing the value. It is needed to support the resources and capabilities with structure, culture, and processes of the company. The resources which are valuable, rare, difficult to imitate and organized become the sustained competitive advantage of the company.

Cadbury is well aware of this component; therefore, its operations and processes are well organized. The human resource of the company is highly skilled and trained. Cadbury work hard to motivate them. The company’s supply chain is efficient and well updated inventory management system (Ibrahim, 2017).

Conclusion

Cadbury is a big global name in the confectionary industry. The company has achieved sustained competitive advantage and maintaining its position in the industry. The company has achieved all VRIO components in most of the resources which helps it in growing and expanding more.

References

• Cadbury, 2020. About the company. [Online], Available at: https://www.cadbury.co.uk/our-story, [Accessed on: 2nd April, 2020].
• Ibrahim, N. 2017. Business strategy and policies (Cadbury company). [Online], Available at: https://www.academia.edu/35555448/Business_Strategy_and_Policies_Cadbury_company_.pdf, [Accessed on: 2nd April, 2020].
• UK Essays. 2018. Cadbury Business Analysis. [Online]. Available at: https://www.ukessays.com/essays/marketing/market-and-business-overview-of-cadbury-marketing-essay.php?vref=1, [Accessed on: 2nd April, 2020].

VRIO model is an analytical tool used by the companies for evaluating its resources and capabilities. This helps them in availing more opportunities and mitigating the threats they are facing. There are four components in the model, Value, Rarity, Imitability and organization. Here is the detailed VRIO analysis of Burberry.

Value

The first and most important component of the VRIO analysis is the value of the resources. Companies should adopt valuable resources for gaining the competitive advantage, as it will help in implementation of the resources effectively and efficiently. Burberry adds value int the company by exploiting the technological opportunities with the e-commerce and in-store installations. It also introduced 3D holographic shows that allows the consumers to shop easily. The trench coats are famous and valuable for the company as they were used in the World war 1.

This provides the strong image as it is associated with the history. Its trench coats are considered as the valuable resource because of its classic and unique styles (KA, 2013).

Rarity

This is the second most important component of the VRIO model, as rarer the resources will be, there will be more chances for the company to achieve the competitive advantage. If the resources will not be rare or easy to be accessible, more competitors will use it for their own benefits and exploit the opportunities. Burberry was the first one to introduce specific fabric called Gabardine, which is waterproof and breathable.

The signature pattern of Burberry is also very rare, and no competitor can have it due to the copy right and patent policy. Burberry is one of a successful company in making its quality unique, classic, simple, and rare (Strangmueller, 2015).

Imitability

It is necessary for the company to have rare and valuable resources, but difficult to imitate the resources are equally important in order to gain the competitive advantage for long term. the resources of the company need to be costly and difficult to get the substitute for, so that competitors will think twice before imitating it. Burberry has successfully associated itself with the history of the world, where its trench coats were used. This provide the assistance to the company in building a strong brand image, which is now difficult for other to imitate.

Burberry also introduced children collection, which got imitated by competitors, but mainly the adult collection never got imitated. However, company is still facing the treats from the companies who make fake products or replicate all the designs (KA, 2013).

Organization

This is the last component of the VRIO analysis. The resources and capabilities cannot bring any advantage in the company if they are not organized and managed properly. The focal company always require the resources to be managed and organized effectively. Burberry instituted the consistent and centralized design for its collection.

It concentrated the production of trench coats at Castleford factory in England and contributes to the UK economy by providing over 1000 of jobs. Bringing back the production to England has solidified the company’s organizational structure which encapsulated its British identity (Faryal, 2020).

Conclusion

Burberry is one of a famous name in the fashion industry, which associated itself with the British heritage and have unique and classic design along with the history. The company has its unique style, and pattern which is famous across the globe. Burberry can achieve the competitive advantage with the help of all the component of VRIO analysis.

References

• Burberry, 2020. About Burberry Group plc. [Online], Available at: https://www.burberryplc.com/en/index.html, [Accessed on: 25th March, 2020].
• Faryal, 2020. Burberry VRIO help. [Online], Available at: https://www.scribd.com/document/436142060/Burberry-VRIO-Help, [Accessed on: 25th March, 2020].
• KA, 2013. Strategic Management Burberry. [Online], Available at: https://prezi.com/smorftxl87o0/strategic-management-burberry/, [Accessed on: 25th March, 2020].
• Strangmueller, M, 2017. Economic Strategies. Potential Improvements of Burberry. [Online], Available at: https://www.grin.com/document/417203, [Accessed on: 25th March, 2020].

VRIO analysis framework is a marketing tool used for internal analysis of the companies. Companies must analyse their resources and capabilities in order to gain competitive advantages. There are four components: Value, Rarity, Imitability and Organization. Here is the detailed VRIO analysis of British Airways.

Value

The first and most important thing for the company is valuable resources. Resources and capabilities help the company in enabling the implementation of the strategies effectively. This further leads to achieving competitive advantage. British Airways is a flag carrier airline company operates internationally. The company has successfully developed its strong position in the UK airports specially at Heathrow airport. BA has sustained to maintain the prominent position which helps it in scheduling more flights for passengers.

This helps the company in earning more revenue. Moreover, the ability of British Airline of forming new alliances in order to grow assets is valuable, as it helps in gaining more market share (Janed, 2015).

Rarity

The second component of the VRIO model emphasize on the rarity of the resources and capabilities. Resources which are acquired by few companies are rare. If the resource is easily available in the market, every competitor will use it accordingly for exploiting the opportunities. To maintain its position in the market, British Airways has introduced different services and provide the comfortable travel experience to its customers.

British Airways was Amont he first companies who introduce the usage of mobile phones on flights. The company’s brand reputation as being a national flag carrier is one notable resource for the company. It is also managing and achieving the marketing and sales synergies (Caseturbo, 2020).

Imitability

Although the rare and valuable resources of the company help in implementing the strategies, but it is necessary the resources must be difficult to duplicate. Or else the resources of the company will not be able to bring the competitive advantage in the company. Either the resources must be difficult to imitate or hard to find alternative for. British Airways is one of a leading company in UK, but its competitors like Virgin Airways are beginning for challenging the company’s monopoly at Heathrow airport.

The differentiated strategies and customer experiences are not that difficult to imitate for the companies as whenever BA will start utilizing its bespoke services, competitors will copy it within short span of time. However, BA is successfully buildings strong alliances with different international airlines like Iberia to offer transatlantic flights for customers (Janed, 2015).

Organization

This is the fourth and last component of the VRIO model. The companies have to organize their resources and capabilities in accordance with the value, rare, and imitability to gain competitive advantages for long run. British Airways work hard in organizing the company’s policies and procedures to maintain its market positions.

All the employees are fully aware of reporting structures, hierarchy, and company environment. British Airways motivates its employees and provide the good working conditions to keep them motivated. Its corporate strategies are according to the objectives and goals of the company, and it works hard to mitigate the threats of the associated risks (UK essay, 2018).

Conclusion

British Airways is an airline company widely used across the UK, Europe and USA. The company is serving in around 300 destinations. It works hard in achieving the VRIO components to achieve the competitive advantage and retain its leading position, as man competitors are now challenging the position of BA.

References

• British Airways, 2020. [Online], Available at: https://www.britishairways.com/en-us/information/about-ba?source=BOT_about_ba, [Accessed on: 25th March, 2020].
• Caseturbo, 2020. VRIO Analysis of British Airways: A Journey in Procurement Transformation Case Study Help. [Online], Available at: https://caseturbo.com/london-business-school/british-airways:-a-journey-in-procurement-transformation/vrio-analysis.php, [Accessed on: 25th March, 2020].
• Janed, K. 2015. British Airways Strategic Analysis. [Online], Available at: https://prezi.com/grp1wq-dyfya/british-airways-strategic-analysis/, [Accessed on: 25th March, 2020].
• UK Essays, 2018. British Airways: Strategic Analysis. [Online]. Available at: https://www.ukessays.com/essays/management/british-airways-strategic-analysis-executive-management-essay.php?vref=1, Accessed on: 25th March, 2020].

VRIO analysis is the marketing tool which helps the company in analyzing the resources of the company that helps in mitigating the risk of the company. Company use these resources to strengthen the position of the company. Here is the detailed VRIO analysis of Britannia.

Value

The first component of the VRIO analysis is Value, which deals with the resources adding more value in the company. The valuable resources of the company help in gaining competitive advantage for availing new opportunities. Britannia is one of a leading company in food and beverages in India. The company has acquired a good reputation and brand image because of its qualitative products. The company has succeeded in gaining the trust of around one-third population. The company has good and strong financial performances, which helps it in investing more in the operations and productions of the products. The company’s supply chain is valuable as maintaining the inventory in every retail outlet is very important (KIIT, 2014).

Rarity

Rarity is the second component of the VRIO model, which analyse the company’s rare resources. Resources are rare which are not easily available or very few companies have it. If the resources will not be rare, competitors will use it and exploit the resources in getting their own benefits. Britannia is one of a leading company, its mass distribution is rare, as the company made its product available in every retail outlet. The company looks forward for expansion and growth and its joint venture with one of a big dairy company is a rare resource. This helps Britannia in growing other regions and in dairy product segment (UK essay, 2018).

Imitability

Imitability is important along with valuable and rare resources, as it will help the company in implementing strategies which other competitors cannot take advantage of it. This will give the organization with first-mover advantage and make the resources difficult to imitate. Britannia is facing tough competition from the industry rivals as they manufacture products which are easy to imitate. The company is also facing the price was, and therefore, Britannia has to focus more on its quality and range. The company can beat its rivals with its quality and high product range. However, its brand image and customer base are not easy to imitate as Britannia has 100 years of legacy (KIIT, 2014).

Organization

This is the fourth component, which along with other three components, value, rarity, and imitability brings the competitive advantage in the country. No resources or capabilities will be able to help the company if the resources will not be well organized. Britannia has made its strong position since many years because of its well managed and organized management and operations. The company has skilled and talented human resource which helps it in growing. The marketing department is very creative as Britannia promotes its products through advertising. The company organized its operations to have strong financial performance. The corporate strategy of the company is also well implemented (Annual report, 2019).

Conclusion

VRIO analysis analyse the resources and capabilities of the company. Britannia is famous for its legacy and product quality. The company’s product portfolio is not that difficult to imitate. The company has good brand image and loyal customer base. Britannia is successfully managing its supply chain and distribution network.

References

• Britannia, 2020. About us, overview, [Online], Available at: http://britannia.co.in/about-us/overview, [Accessed on: 28th March, 2020].
• Britannia, 2019. Annual report. [Online], Available at: file:///C:/Users/CC/Dropbox/Business%20Law/Annual-Report-2018-19.pdf, [Accessed on: 28th March, 2020].
• KIIT, 2014. Strategic analysis on Britannia. [Online], Available at: https://www.slideshare.net/abhinavtushant/strategic-analysis-britannia, [Accessed on: 28th March, 2020].
• UK Essays. 2018. Britannia Industries Problems. [Online]. Available at: https://www.ukessays.com/essays/marketing/problems-facing-britannia-industries-limited-marketing-essay.php?vref=1, [Accessed on: 28th March, 2020].