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    Café Coffee Day - VRIO Analysis

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    Shilpa Isabella D'souza
    The document analyzes Café Coffee Bay, India's largest chain of coffee shops, using the VRIO framework to assess its resources and capabilities. [1] It finds that the firm's financial resources of $845 million are valuable, rare, and costly to imitate due to the large capital required and experience needed. [2] While coffee supplies are not rare, the parent company owns vast coffee estates, processing beans and supplying powder. [3] The firm exploits its resources through a formal structure and budget/compensation policies, and has complementary assets and innovative marketing, conferring sustained competitive advantage and above average performance.

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    Download as PDF, TXT or read online from Scribd

    Café Coffee Day - VRIO Analysis

    Uploaded by

    Shilpa Isabella D'souza
    1K views2 pages
    The document analyzes Café Coffee Bay, India's largest chain of coffee shops, using the VRIO framework to assess its resources and capabilities. [1] It finds that the firm's financial resources of $845 million are valuable, rare, and costly to imitate due to the large capital required and experience needed. [2] While coffee supplies are not rare, the parent company owns vast coffee estates, processing beans and supplying powder. [3] The firm exploits its resources through a formal structure and budget/compensation policies, and has complementary assets and innovative marketing, conferring sustained competitive advantage and above average performance.

    Original Description:

    A VRIO Analysis done for Cafe Coffee Day

    Original Title

    Café Coffee Day – VRIO Analysis

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    The document analyzes Café Coffee Bay, India's largest chain of coffee shops, using the VRIO framework to assess its resources and capabilities. [1] It finds that the firm's financial resources of $845 million are valuable, rare, and costly to imitate due to the large capital required and experience needed. [2] While coffee supplies are not rare, the parent company owns vast coffee estates, processing beans and supplying powder. [3] The firm exploits its resources through a formal structure and budget/compensation policies, and has complementary assets and innovative marketing, conferring sustained competitive advantage and above average performance.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    1K views2 pages

    Café Coffee Day - VRIO Analysis

    Uploaded by

    Shilpa Isabella D'souza
    The document analyzes Café Coffee Bay, India's largest chain of coffee shops, using the VRIO framework to assess its resources and capabilities. [1] It finds that the firm's financial resources of $845 million are valuable, rare, and costly to imitate due to the large capital required and experience needed. [2] While coffee supplies are not rare, the parent company owns vast coffee estates, processing beans and supplying powder. [3] The firm exploits its resources through a formal structure and budget/compensation policies, and has complementary assets and innovative marketing, conferring sustained competitive advantage and above average performance.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    !"#$ !&##'' (") * +,-.

    /0"1)232
    45316" -2"7'11" (82&9:" ; <===>?@A=B

    The vRI0 tool is impoitant to assess the health of a fiim anu its inteinal
    enviionment. The chosen fiim is Caf Coffee Bay - Inuia's laigest chain of coffee
    shops as mentioneu in the SW0T.

    The following coveis the main aspects of this analysis:

    +"19' - Bow expensive is the iesouice anu how easy is it to obtain on the maiket
    (puichase, lease, ient).

    The most impoitant iesouice is the financial iesouice, which no othei new
    enteipiise can match up to which is $84S million foi this fiim as pei the Foibes list.
    The fiim has the ability to puichase whatevei is necessaiy foi its giowth anu
    uevelopment.

    The main iesouice is howevei the Coffee beans oi iathei the Coffee powuei that the
    paient company of Caf Coffee Bay owns in abunuance - 0vei ten thousanu acies of
    coffee estates coveiing a huge pait of the Westein uhats in Inuia.

    ,"C'0'22 - Bow iaie oi limiteu is the iesouice.

    The financial iesouices that the fiim holus aie iaie in the sense that no competitoi
    can match up to its value in monetaiy teims. It stanus well above competition anu
    cannot be matcheu up to.

    The coffee iesouice is not exactly iaie but its supply is limiteu. As the paient
    company of Caf Coffee Bay is Amalgamateu Bean Coffee Limiteu, which owns the
    main iesouice as a whole, it piocesses the coffee beans anu supplies powueieu
    coffee to the outlets.

    -D3E"7313E) - Bow uifficult is it to imitate the iesouice.

    It is veiy easy to imitate the iesouice but it is veiy haiu foi a new company to
    imitate the financial iesouices that aie at Caf Coffee Bay's uisposal. Not only will a
    new fiim iequiie laige initial investment but it will also iequiie knowleuge anu
    expeiience to mimic the piouuction piocess anu the supply chain tienu that caf
    coffee uay follows.

    .CF"03:"E3&0- is the iesouice suppoiteu by any existing aiiangements anu can the
    oiganization use it piopeily.

    The fiim follows a foimal oiganization stiuctuie wheie the suboiuinates iepoit to
    theii immeuiate manageis anu he in tuin to the senioi managei anu so on. They
    howevei have a giievance cell wheiein any employee can iegistei a complaint no
    mattei what his iole is in the oiganization. Such a stiuctuie piomotes a healthy
    woik enviionment anu encouiages the employees to woik haiu.

    They have a stiict buuget policy in place anu they have geneious compensation
    packages. Since the fiim is piopeily oiganizeu it is able to exploit its iesouices anu
    capabilities to the maximum extent.

    Caf Coffee Bay has a laige numbei of complementaiy assets in the foim of sistei
    companies that solely ueal with selling of coffee powuei anu anothei fiim that has
    staiteu selling coffee machines. The fiim also has innovative maiketing stiategies
    that keep competition at bay.

    Theiefoie the assessment using vRI0 is summaiizeu as follows:

    vAL0ABLE. YES
    RARE. YES (financial iesouice)
    C0STLY T0 INITATE. YES
    EXPL0ITEB BY 0RuANIZATI0N. YES
    C0NPETITIvE INPLICATI0N Sustaineu Competitive Auvantage
    FIRN PERF0RNANCE BASEB 0N vRI0 Peisistently Above Aveiage

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