Mao Analysis Of Tissue Paper Industry

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There are a variety of firms in the Malaysian tissue paper industry which are mentioned in the industry-based consideration. Therefore this has proven that the competition in the tissue paper industry in Malaysia is very intense. In order to compete and survive in the tissue paper industry, it is important for a firm to adopt the VRIO analysis framework. VRIO stands for value, rarity, imitability, and organisation, and this framework was founded by Barney J. B.. According to Robert J. Chapman, VRIO analysis is important for firms that wish to succeed by using its internal resources and capabilities to gain the competitive advantage against its competitors in order to maximize their sales and profits (Chapman, ___). First, value. A product…show more content…
To sum up, if a firm has resources that are valuable, it will help the firm to create additional market share in the industry, and later on it will generate as much revenue as possible. However, this can only be done either by strengthening the cost leadership strategy or differentiation strategy. Since most Malaysians come from medium and lower income groups, PREMIER aims to provide their customers with high quality and best value products (PREMIER, __). Thus, PREMIER has chosen to strengthen its cost leadership strategy, which means PREMIER offers lower price products to their customers in order to outperform its competitors. In this case, the competitive advantage of PREMIER is its cheap tissue paper. Furthermore, with the competition in the…show more content…
If the resources of a company is hard to imitate, this will help the firm to gain core competency. This means that a company that gained core competency is considered as having unique characteristics where the other rivals do not have. However, in some industries, like the tissue paper industry, it is less costly for rivals to imitate. Because of the easiness to imitate, therefore, most of the tissue products in Malaysia have similar appearance. Therefore, firms that have their operations in the tissue paper industry will be more likely to invest a large sum of money in their Research and Development (R&D) department in order to come up with fresh and creative ideas. This will give the firm an opportunity to introduce a product with new functions that benefit the customers. The same goes for PREMIER. As mentioned in the previous paragraph, PREMIER has come out with a variety of tissue products with different functions. Also, because of the affordability to imitate an idea in the industry, the idea of PREMIER, which is wide variety of tissue products with different functions will also be imitated by its rivals very soon. Thus, PREMIER’s R&D team needs to continue to develop new products constantly in order to compete in the competitive

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