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    VRIO Analysis of ITC Personal Care Sector

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    Mihir Singh Tiwari
    The VRIO framework is used to analyze a company's internal strengths and resources that can provide competitive advantages. It identifies which resources are valuable, rare, difficult to imitate, and supported by the organization. The analysis found that ITC Personal Care has valuable brands and a rare strategy of frequently repositioning products every 6-12 months. However, some of ITC's resources only provide temporary advantage or competitive parity since competitors can eventually imitate them.

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    VRIO Analysis of ITC Personal Care Sector

    Uploaded by

    Mihir Singh Tiwari
    344 views3 pages
    The VRIO framework is used to analyze a company's internal strengths and resources that can provide competitive advantages. It identifies which resources are valuable, rare, difficult to imitate, and supported by the organization. The analysis found that ITC Personal Care has valuable brands and a rare strategy of frequently repositioning products every 6-12 months. However, some of ITC's resources only provide temporary advantage or competitive parity since competitors can eventually imitate them.

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    Vrio Framework

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    The VRIO framework is used to analyze a company's internal strengths and resources that can provide competitive advantages. It identifies which resources are valuable, rare, difficult to imitate, and supported by the organization. The analysis found that ITC Personal Care has valuable brands and a rare strategy of frequently repositioning products every 6-12 months. However, some of ITC's resources only provide temporary advantage or competitive parity since competitors can eventually imitate them.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    344 views3 pages

    VRIO Analysis of ITC Personal Care Sector

    Uploaded by

    Mihir Singh Tiwari
    The VRIO framework is used to analyze a company's internal strengths and resources that can provide competitive advantages. It identifies which resources are valuable, rare, difficult to imitate, and supported by the organization. The analysis found that ITC Personal Care has valuable brands and a rare strategy of frequently repositioning products every 6-12 months. However, some of ITC's resources only provide temporary advantage or competitive parity since competitors can eventually imitate them.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    The passage discusses ITC's use of the VRIO framework to analyze its personal care products and business. Key aspects include ITC's repositioning strategy, leading brands, and goals to diversify profits beyond cigarettes.

    The VRIO framework is a tool used in strategic management to analyze a company's internal strengths and resources to identify those that can provide competitive advantage.

    ITC evaluates if its resources are valuable, rare, imitable, and if the company is well organized to exploit them. For personal care products, it focuses on frequent repositioning, leading brands, and large financial resources.

    VRIO FRAMEWORK

    VRIO framework is a tool in strategic management that is used in order to analyze a


    company’s and firms internal strengths as well its resources. This framework is used
    for the purpose of identifying the internal resources as well the strengths which can
    be further used as a source of potential that can be used as a means of competitive
    advantage in the near future.

    While analyzing a company has either of the mentioned advantages, a company can
    have a good competitive advantage, it can have a disadvantage, temporary
    advantage or competitive parity.

    VRIO Analysis of ITC Personal Care Sector:

    Valuable:
     Frequent Facelift of its Personal care products:
     ITC is constantly trying to reposition its personal care products in
    completely unexplored and unconventional outlets to have a far reach
    of its personal care products. This is done every 6-12 months.
     ITC’s Deodorant brand Engage is the second leading brand in the
    deodorant market. ITC values it the most.
     ITC is amongst the top 3 brands in terms of Shower gel, hand wash and
    deodorant categories.
     Nivea with a market share of around 20% was a market leader in its
    category in the first quarter of this year.
     TC is one of the country’s leading companies and a threat to many
    companies.
    Rare:
     Frequent Facelift of its Personal care products:
     In order to have a competitive advantage over its competitors, ITC
    repositions its personal care products every 6-12 months, thereby
    exploring the various different and unrecognized outlets in order to sell
    its personal care products.
     ITC is expanding its well renowned brand Savlon antiseptic into
    various newer categories. This is done on regular interval.
     ITC uses both home-grown brand as well as it buys from other in order
    to enter a new segment.Example, Savlon was acquired from Johnson
    and Johnson and now is ITC’S one of the leading brands in terms of
    personal care.
     ITC was the first to launch a no gas deodorant of its brand Engage.
     ITC’s was one of the first companies in India to come up with the idea
    of pocket deodorants.

    Imitable:

     ITC’s strategy of repositions its personal products with an interval of 6-12


    months is something that its competitors will find hard to imitate.
     ITC is selling its hand washes and its range of pocket deodorants through the
    various paan shops and other neighboring stores as well where the products
    of its competitors are not sold yet.
     ITC’s financial resources is very huge for any company to compete ,it must
    be very difficult for them to match up to the brand and the financial resources
    of ITC.
    Organization:
     ITC is planning to improve its visibility more by focusing more on its
    personal care products by advertising it more.
     Newer innovations are trying to be incorporated in the personal care sector
    ITC.
     ITC wants that profit shall also come from other business as well and it
    shouldn’t only rely on cigarette sectors for its future expansion.
     Very difficult for any new entrant to compete with the likes of ITC as it is
    already one of the leading companies of the company with great amount of
    financial resources.

    Conclusion from VRIO Analysis:

     Its repositioning strategy on regular intervals has helped ITC in capturing a


    large part of the unrecognized sector giving a competitive edge over its
    competitor.
     Its range of products like shower gel, hand wash and deodorants are its
    leading brands providing a competitive advantage.
     ITC should invest more and more in the personal care sector and focus more
    on bringing different variants of its products. This provides only temporary
    competitive advantage at the moment, as its competitors have more and more
    variants.
     For a lot of its products there a exists a competitive parity with its
    competitors

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