The VRINE Model
One of Pompeian’s resources is its bottling facility and its access to raw material. Their skill or capability in using the resources are in their ability to reduce costs in manufacturing the product, pass that cost saving to consumers, and investing in new products while increasing market share giving them an advantage over the competition.
Is it Valuable? – The resource, having access to raw material through their partnership allows Pompeian to forecast available inventory and adjust manufacturing plans. The disadvantage that the company could endure would be if other regions in the Mediterranean, Italy for example, grows more in production but Pompeian would be reliant on using crop from the land they have ownership in. The bottling facility is another valuable resource, shipping oil to the US in bulk containers, lessen the cost of transportation. The result is lower cost of materials contributing to the margin of the company.…show more content… Access to raw material is not rare in the case of olive oil, the rarity of the situation that the company enjoys is the immediate access to the material. Spain being the largest producer of olive and Pompeian having a partnership with the largest grower makes the situation rare in the industry. The other resource the other branded companies to not have, is there own bottling facility. A competitive advantage that would give the company is its ability to shift production as needed based on sales forecasts. The lead time for product to reach the states can be 4-6 weeks and with the changing sales environment, it would be a benefit to have raw material in bulk and be able to shift production from one pack size to