VRIO FRAMEWORK OF COCA-COLA
HEADQUARTER –U.S.
INDUSTRY SERVED- BEVERAGES
CEO - James Quincey
MAJOR COMPETITOR- PEPSICO
VRIO FRAMEWORK
This tool is developed by BARNEY J.B, according to him, the resource must be valuable, rare, imperfectly imitable and non-sustainable
VALUABLE:
coca- cola resource considered valuable if they add value by enabling a firm to exploit opportunities or defend against threats. This is done by increasing differentiation and decreasing the price of the product. coca cola manages their brand image in global market and connects with people all over the world due to their different and unique taste. They had better sales and long reputation as the leader of the cola world. Coca-cola biggest formula is the biggest success and differentiates their product from the other beverage companies. They provide a different range of cola in at the different price and fulfill the customer needs.
Different types of product cola offer
Coca-cola black diet coke plus
Coca-cola black cherry vanilla
Coca-cola zero
Diet coke with lime
Vanilla Coke
Coca-cola black cherry vanilla
RARE:
coca-cola Resources can only be acquired by one or very few companies are considered rare. Rare and valuable resources grant temporary competitive advantage. Coca-cola competitive parity and differentiation strategy make them rare. When thinking about any soda drink coca cola is the first come in customer mind. This rarity company capabilities and resource persist over the long time period. In term of human resource management, Coca-cola is the head of all the other companies in soda industry and their marketing skills and high brand image make them rare which is far higher than that of a competitor and last their secret formula (different flavor) give the company highest success.
Costly to imitate:
There is hundred generic cola in the market but the specific product of coke is not imitable due to cost asymmetric on its market. The company without resource and capabilities face significant cost disadvantage compared to a company that already possess them.
the handful known the formula and has a long history of keep[ing it make the cola different and it impossible to imitate
ORGANISATION
Cola company firm structure include company management and control system, compensation policies make the firm achieve the sustained competitive advantages.
It plays role in differentiation because red signifies coke over the Pepsi blue.
CONCLUSION : COCA-COLA company is now the largest soft drink company in world. the company take pride in being a world most business that is always local. through analysis of coca-cola resource and capabilities, brand value is the most important resource to the sustained competitive advanatage.
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