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].

VRIO framework is used for analyzing the internal capabilities and resources of the company in order to find the competitive advantage. There are four components of the framework: Value, Rarity, Imitability and Organization. The company which is able to meet all these four requirements is able to achieve the competitive sustained advantage. Here is the detailed VRIO analysis of Walt Disney.

Value

The first component of the VRIO analysis is the questions about the value of the resources. This answers the question of how the resources of the company adds value in the performance and how company exploits the opportunities. Resources are considered valuable if it increases the customer value. Disney is one of the biggest company across the world whose value is around $179.5 billion according to Forbes. The profit of the company ranges from $49.7 billion. Disney is the valuable company as they avail the opportunities and resources very well. The financial performance of the company is so well that they can invest in the new innovative ideas. The international capacities of Disney help the company in marketing of the company (Villa, 2015).

Rarity

The second component of the framework deals with the rarity of the resources of the company. The resources which are acquired by few companies are considered as rare. As these resources grant the company temporary competitive advantage. However, if many companies own the same resources or capability in same way, then it will lead to the competitive parity. The tangible asset of the Walt Disney company is not considered as rare because there are numerous companies with good financial performance and the international facilities. However, its organizational resources are rare. The company is one of the few media giants. The company has huge organization and human resources. Disney’s innovative and creative characters are very rare. The whole Disney adventure and experience is completely rare and amazing (Edwards, 2018).

Imitability

This deals with the imitability of the resources in the organization. Costly resources are usually difficult to imitate, and many companies switch to substitute products and affordable prices. Imitation of the resources can be done in two ways, either through duplication of the resources or substitution of the products. The characters and cartoons of the Disney are so difficult to imitate that no company since many years can copy it or created the content up to that match. Moreover, the exploitation of Disney of its diverse brands has caused the rivals to follow the suit like WB with Justice League, but it did not work. Companies found it costly and impossible to imitate the strategy of Disney (Ntmrtin2, 2019).

Organization

The resources in the company alone cannot bring any advantage in the company until and unless it is not properly organized. The company needs to organize the management system, policies, processes and organizational structure along with environment to be able to realize the valuable, rare and imitability of the resources. Disney has achieved competitive advantage in this because on interaction with customers and business associates. The company is employing over 180,000 people which are dedicated in providing unique experiences to people. Disney provides one of the best customer services. Disney is maintaining 5 resorts across the globe very well. It’s all five business segments are media networks, studio entertainment, resorts and parks, interactive media and consumer products (Villa, 2015).

Conclusion

Disney is among one of the famous companies across the globe. Disney is successfully able to add the value in the resources and the capabilities, by making it rare and difficult to imitate with the help of organized business environment.

References

• Edward, Z. 2018. VRIO Analysis of Disney. [Online], Available at: https://www.case48.com/vrio-analysis/12660-Disney, [Accessed on: 15th March, 2020].
• Ntmrtin,2, 2019. Disney and the VRIO Framework (Brand Equity) – Chapter 5 Post. [Online], Available at:
• https://ntmrtin2.wordpress.com/2019/09/29/disney-and-the-vrio-framework-brand-equity-chapter-5-post/, [Accessed on: 15th March, 2020].
• Villa, M. 2019. Disney VRIO Analysis. [Online], Available at: https://prezi.com/4sl6tf5oepyt/disney-vrio-analysis/, [Accessed on: 15th March, 2020].
• Walt Disney, 2020. About us. [Online], Available at: https://thewaltdisneycompany.com/about/, [Accessed on: 15th March, 2020].