VRIO FRAMEWORK OF COCA-COLA

- March 02, 2018

HEADQUARTER –U.S.
INDUSTRY SERVED- BEVERAGES
CEO - James Quincey
MAJOR COMPETITOR- PEPSICO

VRIO FRAMEWORK

VRIO tool used to analyze the firm internal resource and capabilities to find out that they
can be a source of sustained competitive advantage.
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.

Chk this

https://prezi.com/hitfvzpc6o29/coca-cola-strategic-analysis/