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Vrio Analysis of Nestle

The VRIO analysis examines the resources and capabilities of Nestle Company to determine if they provide a competitive advantage, specifically looking at whether resources are valuable, rare, difficult to imitate, and the organization is well-structured to exploit them; key resources like leadership team, brand awareness, and market position meet these criteria and provide Nestle with sustainable competitive advantages.

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Sitara Qadir
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7K views2 pages

Vrio Analysis of Nestle

The VRIO analysis examines the resources and capabilities of Nestle Company to determine if they provide a competitive advantage, specifically looking at whether resources are valuable, rare, difficult to imitate, and the organization is well-structured to exploit them; key resources like leadership team, brand awareness, and market position meet these criteria and provide Nestle with sustainable competitive advantages.

Uploaded by

Sitara Qadir
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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VRIO analysis:

The VRIO analysis of Nestle Company is a broad range analysis providing the organization

with a chance to acquire a viable competitive advantage against its competitors in the food and

beverage industry.

Valuable:

The resources used by the Nestle company are valuable for the company or not. Such as the

resources like finance, human resources, management of operations and experts in marketing.

This are some of the key valuable factors of for the identification of competitive advantage.

Rare:

The valuable resources utilized by Nestle are even rare or expensive. If these resources are

commonly found that it would be easier for the rivals and the new competitors in the industry

to effortlessly move in competition.

Imitation:

The imitation process is costly for the rivals of Nestle Company. However, it can be done only

in two different techniques i.e. product duplication which is produced and manufactured by

Nestle Company and launching of the substitute of the products with switching cost. This

increases the threat of disruption to the recent structure of the industry.

Organization:

This component of VRIO analysis deals with the compatibility of the company to position in

the market making productive use of its valuable resources which are difficult to imitate.

Frequently, the development of management is totally dependent on the firm’s execution

strategy and team. Thus, this polishes the skills of the firm by time based on the decisions made

by firm for the progression of its strategic capitals.


Resources Valuable Rare Imitate Organization Competitive
Advantage
Network Yes Yes Close – Completely Unused
competitive
Flexibility sharing some consumed.
Advantage
of Supply same

chain suppliers

chain

Market Yes Yes Challenging Yes Sustainable


Competitive
position
Advantage
Leadership Yes Yes No Yes Strong
competitive
team
Advantage
Awareness Yes Yes No Yes Sustainable
Competitive
of Brand
Advantage
Financial Yes No Compatible Financial Temporary
Competitive
Resources with all status is
Advantage
rivals sustainable

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