Valuable  Healthy financial resources of Nestle are highly valuable - help in investing

into opportunities, diversification, and new launches | thwart off external

threats.
 Local flavoured food products - valued more by the consumers
 Employees - lower attrition % - A significant portion of the workforce is
highly trained, and this leads to more productive output for the
organisation.
 Distribution network - increase in direct reach from 1.3mn to 1.4mn
 Penetration led growth | Higher based for New launch placement
 Cost structure – healthy EBITDA with forward-looking double-digit growth
 Research and development at Nestle is not a valuable resource. ROI is
lower.
Rare  Trained Employees of Nestle are a rare resource. These employees are
highly trained and skilled, which is not the case with employees in other
firms. The better compensation and work environment ensure that these
employees do not leave for other firms.
 Patents are a rare resource. These patents are not easily available and are
not possessed by competitors. This allows Nestle to use them without
interference from the competition.
 Distribution network of Nestle is a rare resource. This is because
competitors would require a lot of investment and time to come up with a
better distribution network than that of Nestle. These are also possessed
by very few firms in the industry.
 Consumer confidence is rare resource for Nestle in Baby foods and other
foods products.
Imitable  Financial resources of Nestle - Are costly to imitate as identified by the
Nestle VRIO Analysis.
 Patents of Nestle are very difficult to imitate. This is because it is not
legally allowed to imitate a patented product. Similar resources to be
developed and getting a patent for them is also a costly process.
 Distribution network of Nestle is also very costly to imitate by
competition.  This has been developed over the years gradually by Nestle.
Competitors would have to invest a significant amount if they are to
imitate a similar distribution system.
 Consumer confidence is difficult to imitate easily. It needs significant
investment in influencer network and marketing spends.
Organisation  Nestle has good top management to middle management who can drive
topline growth and deliver profits
 Nestle has required process to manage business and statutory risks to
ensure sustainability of growth and profits.
 Financial resources provide a sustained competitive advantage. Financial
resources of Nestle are organised to capture value. These resources are
used strategically to invest in the right places; making use of opportunities
and combatting threats.
 Nestle uses its distribution network to reach out to its customers by
ensuring that products are available on all of its outlets. Therefore, these
resources prove to be a source of sustained competitive advantage for
Nestle.