The VRIO analysis of Honest Tea Company is a broad range analysis offering the company with an opportunity to get a practical competitive advantage against its competitors in the food and drink industry, summed up in Exhibit I.
Valuable
The resources used by the Honest Tea business are important for the business or not. Such as the resources like finance, personnels, management of operations and specialists in marketing. This are a few of the crucial valuable factors of for the identification of competitive benefit.
Rare
The important resources used by Honest Tea are even rare or costly. If these resources are typically found that it would be much easier for the rivals and the brand-new competitors in the market to easily move in competition.
Imitation
The imitation procedure is pricey for the competitors of Honest Tea Business. It can be done just in 2 various techniques i.e. product duplication which is produced and manufactured by Honest Tea Business and introducing of the replacement of the items with switching cost. This increases the threat of disturbance to the current structure of the market.
Organization
This element of VRIO analysis handle the compatibility of the business to place in the market making efficient use of its important resources which are difficult to mimic. Often, the advancement of management is totally dependent on the firm's execution technique and team. Hence, this polishes the abilities of the firm by time based on the choices made by company for the progression of its tactical capitals.
Exhibit I: VRIO Analysis
