VRIO Analysis (Resources and Capabilities):
The Company’s internal strengths are defined as valuable, rare, difficult to imitate and supportive by organization. These characteristics are the key ingredient of the VRIO analysis. The VRIO analyses of the Cooper Brewery are as follows:
| VRIO Analysis of Cooper Brewery | |||||
| Valuable | Rare | Difficult to Imitate | Supportive by Organization | Competitive Implications | Performance |
| No | - | - | - | Competitive Disadvantage | Below Normal |
| Yes | No | - | - | Competitive Parity | Normal |
| Yes | Yes | No | - | Temporary Competitive Advantage | Above Normal |
| Yes | Yes | Yes | - | Sustained Competitive Advantage | Above Normal |
In context with the above analysis, the following are the resources/capabilities:
Technological Change: In comparison with past years, the Cooper is more advanced now in terms of technology. The technology is creating value for them in terms of the production process.
Hand- Crafted Product: Cooper’s product is rare in production process because the product they produce is hand-crafted which is valued by customers.
Family Business: Cooper Brewery was established as the family business and is still working under the family tree. The Cooper family wanted the business to be independent and they are doing well to maintain their freedom.
Friendly environment: The Cooper Brewery environment is very friendly as compared to the Lion Nathan and the Foster. Both giant companies are using their parent company’s policies which are not helpful to their employees.
It can be concluded after analyzing the VRIO analysis of Cooper Brewery; that the overall position of the company is very attractive and the firm is enjoying an independency. The company has fully sustained its competitive advantage over its competitors. The firm has a smaller market share but still it can be said that it is performing quite well.
Recommendations:
Cooper’s market position is weak; but they are not on the line of the normal market forces. The key for Cooper Brewery is to remain differentiated from its competitors. The key success factor for them is to produce home-crafted wine and beer, which has the potential for growth in the local market. It is the only firm that is a local brand and they should keep on moving in this way. In international market they should introduce their wide range of products; but they must sustain their image for producing home-crafted beer.
Please see below the appendices for the market share and for the comparison of the cooper Brewery with its competitors.
Exhibit # 1
| AUSTRALIAN MARKET SHARE (VOLUME PERCENTAGE) | ||||||
| Company | 2002 | 2003 | 2004 | 2005 | 2006 | |
| Foster’s | 54 | 23.6 | 54.3 | 53.9 | 53.7 | |
| Lion Nathan | 41.1 | 41.5 | 40.4 | 39.8 | 39.6 | |
| Coopers | 1.7 | 1.9 | 2.3 | 2.8 | 3.1 | |
| Other | 2.9 | 3 | 3 | 3.5 | 3.6 | |
Exhibit # 2...........................
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