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VIRO Analysis

The document discusses several resources of Coca-Cola and their competitive advantages. It states that Coca-Cola's large product range provides a temporary competitive advantage as it can be easily imitated by rivals like PepsiCo. However, Coca-Cola's secret formula provides a sustainable competitive advantage as it is valuable, rare, inimitable and secret. Coca-Cola's brand image also provides a sustainable advantage through valuable brand recognition and consistent quality and marketing.

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Debasish Pattanaik
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54 views

VIRO Analysis

The document discusses several resources of Coca-Cola and their competitive advantages. It states that Coca-Cola's large product range provides a temporary competitive advantage as it can be easily imitated by rivals like PepsiCo. However, Coca-Cola's secret formula provides a sustainable competitive advantage as it is valuable, rare, inimitable and secret. Coca-Cola's brand image also provides a sustainable advantage through valuable brand recognition and consistent quality and marketing.

Uploaded by

Debasish Pattanaik
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Large product range – It is a source of temporary competitive advantage for Coca-Cola because

PepsiCo can imitate easily. However, no rival apart from PepsiCo deals in such a large product range.

Secret formula – It is a source of sustainable competitive advantage because it is valuable, rare,


inimitable and the firm is organised to keep it a secret.

Brand image – It is a source of Sustainable competitive advantage because it is valuable, rare,


inimitable and the firm is organised to plan its marketing and branding activity, keeping the quality
consistent. There can be many other aspects of branding as well. 

Were the resources, that is, application, restaurant network and delivery execution, valuable?

Yes, because they allowed Foodpanda to grow and compete in the business. A customer had the
ease of access to a variety of restaurants and enjoyed the convenience of getting their food
delivered through the application.

Were the resources rare?


Back then, yes, these resources were rare. But not so in the long term. Zomato was already growing
in the search and discovery domain and continued adding many restaurants. Similarly, it was
possible for a new player, which eventually was Swiggy, to create this network. The application was
rare because India was not used to having food ordering applications then.
 
Were the resources inimitable?
No, as discussed earlier, there was nothing inimitable about the restaurant partnerships, delivery
process, or even the application. Any player in the space could create those and even improve at
them, which was the case with both Zomato and Swiggy. Swiggy, in fact, was able to build a more
efficient delivery infrastructure and a better mobile application, while Zomato managed to excel in
terms of restaurant coverage.

Through this analysis, it becomes clear that FoodPanda did not have a sustainable competitive
advantage with regard to the three most important resources in the food delivery industry, that is,
application, restaurant network and delivery execution. It had competitive parity.

ITC distribution network helps it in reaching out to more and more customers. This ensures greater
revenues for ITC Limited India. It also ensures that promotion activities translate into sales as the
products are easily available pan India. This is a valuable resource.

The competitors would require a lot of investment and time to come up with a better distribution
network than that of ITC. Such a large distribution network is possessed by very few firms in the
industry. Thus, it is a rare resource.

The distribution network of ITC is very costly and hard to imitate. Since it has been developed over
the years gradually.

The organisation is structured to leverage its distribution network. ITC has the largest market share,
and due to this, it is often able to leverage shelf space in most shops. It began its shift from tobacco
to FMCG by using its existing distribution network, as most shops that stored their tobacco products
were now storing their matchsticks, chips and biscuits as well.

Keeping these in mind, ITC’s distribution network is definitely a source of sustainable competitive
advantage for the firm.

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