Britannia Industries is a food company in India with over 100 years of legacy. The annual revenue of the company is more than Rs.9000 crore. Britannia is considered as one of the leading companies in India, and most trusted company in food industry. The company manufactures the favorite brand of India like Tiger, Good Day, Milk Bikis, Nutri Choice, and the Marie Gold. The product portfolio of the company includes bread, biscuits, cakes, dairy products, beverages and rusk. The products of Britannia’s products are available around the country in around 5 million retail outlets (Britannia, 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.
| V | R | I | O | ||
| Supply Chain | ✓ | ✓ | ✓ | Temporary Competitive Advantage | |
| Inventory management | ✓ | ✓ | ✓ | ✓ | Sustainable advantage |
| Brand Equity | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Marketing | ✓ | ✓ | ✓ | ✓ | Sustainable advantage |
| Product quality | ✓ | ✓ | ✓ | ✓ | Sustainable advantage |
| Product range | ✓ | ✓ | ✓ | ✓ | Sustainable advantage |
| Talented HR | ✓ | ✓ | ✓ | Competitive parity |
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].