Using the VRIO (value, rarity, imitability, organization) framework, analyze the primary resources and capabilities that will enable Little Sheep Catering Chain Co. to generate a sustainable competitive advantage.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
Examine competitive dynamics at the industry level in order to formulate effective global strategies.
Analyze internal capabilities of a firm in order to formulate effective global strategies.
Use technology and information resources to research issues in global strategy.
Write clearly and concisely about global strategy using proper writing mechanics.
Answer preview
The little sheep company will have an added advantage in competition because of value, it requires little capital to start and maintain. For example, it does not require chef because the customers cook the mutton for themselves in the hotpot. The chef would have brought a lot of liabilities to the company which turns out to be a great advantage. On rarity, another advantage is that the recipe and ingredients of the food are invented by the owner. He had tried many recipes and ingredient but he settled on this specific one. It can only be found on their premises. On imitability, the company can protect itself by obtaining a trademark and whenever on the company tries to imitate it, they can always use legal procedures. On organization, the company can train its management, partner with experts and obtain capital from financiers with added benefits such as technical assistance (Morschett, Schramm-Klein, & Zentes, 2015).
