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V- Valuable: competitive disadvantageOffers a non-drowsy allergy medication57.8 customer satisfaction R- Rare: competitive parityAllstars Brands OTC prescription are not rare and can be easily imitated to manufacture a similar product for consumersResources are valuable but commonCompeting in the marketplace more challenging (but not impossible)9
I-Inimitable: temporary competitive advantageAllstars Brands is part of an industry that have access to the same resources and can manufacture comparable products for comparable prices. Affordable or easy to copy O- Organized: unused competitive advantageAllstars Brands has solid divisions, departments and manufacturing segment Organized management systems, processes, structures, and culture to capitalize on resources The VRIO analysis identifies Allstars Brands as a hybrid of parity segments. Allstrands Brand has a valuable OTC medication with a formula that cannot be replicated; however, it does not have a distinctive competitive advantage in their marketplace. Having a VRIO outline in place allowed Allstar Brands to take a entirelydifferent tactic to OTC medication, follow up with the 4 P’s (production, price, promotion and place), will provide better insight with the management team and make decisions using immense quantities of objective data.Allstars SWOT AnalysisUsing the VRIO analysis for Allstar Brands provided information that is depicted in SWOT Analysis (Strength, Weakness, Opportunity, Threat) graph below which is essential in identifying and developing a competitive advantage: strengths and weaknesses represents Allstar Brands internal factors while opportunities and threats represents the company external factors.StrengthWeaknessOpportunitiesThreatsTop respectedOTC company in the marketplaceOnly non-drowsy allergy OTC in marketplace# 1 Leader in brand awareness Low percentage market sharesSmall advertising, promotional budgetDeficiency physician backing – support for productsPharmaceutical sells decrease Media exposure (TV, social websites, billboards)Governmentsubsidies, grants, proposalsNew products, additional manufacturing facilities Governmentpolicies, laws, procedures and restrictions CompetitivemarketplaceHigh volume of substitution Damage creditability10
Allstar Porters 5 Force AnalysisThreat of Entry: Allstar will be challenged withpotential competitors that will enter the OTC industry with same ingredients, technology, medication blends and forms. The concerns of new companies merging into the marketplace is high as organizations established non-specific or generic products with comparable effects marketing at lower prices. The Power of Suppliers:Bargaining power of suppliers equals potential profits; Allstar depends heavily on partnerships to increase business with new products and request additional supplies while using the option of subcontracting to procure their ingredients at inexpensive prices.