In order to understand a firm

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In order to understand a firm's sources of competitive advantage, management always uses the VRIO framework. VRIO is an advanced managerial analysis tool used in strategic management to assess an organization’s internal resources and capabilities to find if these resources can be a source of sustained competitive advantage (Jugdev, 2005). As such, it targets valuing a company’s resources in any industry to enhance the degree of competitive advantage the firm can have over other rival firms. The term VRIO comes from the words Value, Rareness, Imitability and Organizations of such resources. This paper, therefore, tries to analyze Bonduelle Company’s competitive advantage using the VRO tool. According to Barney (1991), four key parameters must be considered for a firm's resources to become a source of sustained competitive advantage. These are valuability, rarebility, imitability, and sustainability. A firm's resource is said to have sustained competitive advantage if it's valuable, rare, imperfectly imitable, and non-sustainable. Later in 1995, Barney introduced an improved model of VRN, which was the VRIO framework where the aspect of non-sustainability of resources was replaced with the organization of resources. In the new version, Barney argued that a firm's resources would only be said to be a source of competitive advantage if they are valuable, costly to imitate, rare and if the firm is organized to capture the value of these resources. A resource or capability that meets all four requirements is said to be able to bring sustained competitive advantage for the company over its rival. Valuable The first question of the VRIO framework always asks if a firm's resources add value to the firm by enabling it to exploit opportunities or defend itself against threats. If yes, the resource is considered valuable. Bonduelle Company's resources allow the firm to add value and help the organization increase the perceived customer value, leading to competitive advantage. Rare A resource is said to be rare if it can only be acquired by one or very few companies. Rare and valuable resources often grant a firm’s a higher degree of competitive advantage because it becomes costly or hard for other potential rival firms to access such resources. Though Bonduelle Company’s resources are not that rare to find, they are costly to access, making the firm enjoy some degree of competitive advantage in the market. Costly to imitate A resource is said to be costly to imitate if other organization that doesn't have it find it almost impossible to imitate, buy or substitute it at a reasonable price. Because of the high standards of its resources, it's incredibly costly for other organizations to imitate Bonduelle Company's resources. Because of this, the firm's resources are said to have a sustained competitive advantage. Organized to capture value Arguably, a firm's resources do not always confer any degree of competitive advantage if such resources are not organized to capture the firm's value. Therefore, the management must organize its management systems, policies, organizational structure, and culture to make the utilization of available resources more valuable. Looking at how Bonduelle Company is structured, it's evident that the resources are organized in a manner that they become valuable in promoting the firm's performance. The above analysis shows that Bonduelle Company's resources are a source of its competitive advantage, which is why it is one of the best performing firms amongst its rivals in the industry

Proprietary Battery The batteries are the most expensive component of electric cars. Tesla currently generates its battery in cooperation with Panasonic within their Gigafactory located in Nevada (Alghalith, 2018). The Company intends to expand its output and hopes to increase the trustworthiness of its partners (Alghalith, 2018). The structure would accommodate 480 personnel, with roughly 150 operating varied schedules in keeping the process running 24 hours throughout the day, as per the research (Kauerhof, 2017). As previously said, batteries are still the most valuable component of electric cars. By introducing in-house battery manufacture, the cost of these cars can be lowered. Household electric battery is valuable but not uncommon and can be replicated. This is indeed a competitive issue because Tesla now manufactures its batteries through Panasonic's assistance. Tesla could have a long-term competitive advantage in this industry if it can develop and produce batteries for its electric cars on its own. Brand Image Tesla Company has one of the most powerful electric car brand images on the market. The popularity of a firm, purchases, and net revenues are all influenced by its brand images (Matthews et al., 2020). The chief factor why Tesla Company can distinguish itself from other electric-based car businesses is its strong brand image. This Company is a premium-based electric-only automobile manufacturer that outshines simply by being unusual and meaningful. Tesla's exceptional levels of consumer satisfaction are converting into exceptionally elevated rates of consumer loyalty, as per the Experian study (Matthews et al., 2020). Conversely, Mercedes-Benz, and Porsche, have a strong brand image but aren't recognized for their electric-based automobiles. In 2019, "Porsche" and "Mercedes-Benz" presented their very first fully electric automobiles; Tesla's electric cars were already on the marketplace for over ten years at the time. As a result, customers may feel Tesla is synonymous with electric automobiles throughout the U.S. Tesla, Inc. enjoys a long-term competitive edge in brand image. Product Range Tesla Company has successfully brought a diverse product line to the car industry. They are lesser than names like "Porsche" and "Mercedes Benz," but the Company has carved out a position throughout the electric car market. Tesla's the most less expensive, the "Model 3," has garnered some significant market space, even though it is primarily aimed at the top end of the market (Alghalith, 2018). Because it is one of the most affordable high-end electric cars, the "Model 3" has acquired a lot of traction. Tesla also offers the "Model S, X, and Y," which are more expensive. These items function admirably and can stay consistent with only the most potent gasoline-powered automobiles available. "Porsche" and "Mercedes-Benz," as previously said, all have a vast product variety, although, in the case of electric cars, each only has a single vehicle available for purchases. This demonstrates that the Tesla company has a transitory product range advantage due to many electric automobiles on the marketplaces for customers. It is just a transitory advantage since "Porsche" and "Mercedes-Benz" have the resources for competing with Tesla by producing more electric automobiles.

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