VRIO Analysis of 

Unilever Philippines
Jay Barney created the VRIO Framework to assess the relative value of resources to a
business. VRIO stands for Value of the resource, Rarity of the resource, Imitation Risk, and
Organizational Competence. It is a strategic analysis tool that focuses on resources. Unilever
Philippines' VRIO Analysis will examine its internal resources to determine whether they create
a sustainable competitive advantage.
Valuable
 Having a strong global presence is critical for a business looking to grow its size,
revenue, and share of the entire industry. It is a cost-effective and long-term strategy of
generating revenue from new and existing buyers. Unilever operates in around 190
countries and markets a diverse range of products.
 Unilever Philippines offers a variety of exceptional and satisfying products that other
competitors do not always offer. Additionally, it includes information and specific
ingredients for each of its goods to pique the interest of a diverse clientele.
 The Unilever brand name enables clients to connect with and enjoy the brand. This
enables consumers to develop an emotional connection with the brand and see it as an
extension of themselves. Developing the brand into a significant asset for the business.
 Unilever's financial resources are extremely valuable since they enable the company to
invest in external opportunities that arise. These also assist Unilever in defending against
external attacks.
 Unilever's locally sourced food products are a great resource due to their high degree of
differentiation. As a result, customers place a high premium on these. Additionally,
clients appreciate these products more than the competition due to their differentiation.
 Unilever's employees are a valuable resource since a significant section of the workforce
is highly trained, which results in a higher level of productivity. 
 Patents are a valuable asset because they enable a business to sell its products without
facing competitive pressure. Unilever owns over 20,000 patents and patent applications,
which translates into increased revenue for the company. Additionally, Unilever earns
cash from licensing these patents to other firms.
  Unilever's distribution network is a key asset since it enables the company to reach an
increasing number of clients. This increases Unilever's revenue. Furthermore, it ensures
that promotional activities result in sales by making the products readily available.
 Unilever's research and development costs exceed the value it generates through
innovation. Thus, Unilever's research and development is not a significant resource. In
the last few years, there have been very few revolutionary features and ground-breaking
items. As a result, Unilever has a competitive disadvantage in terms of research and
development.

Rare
 Unilever Philippines is a contemporary brand name that is elegant, modern, and vibrant.
The majority of other companies and rival brands lack the quality and packaging
necessary to entice clients in the way that Unilever Philippines does.
 Unilever Philippines is one of the largest firms in the country, having established a
reputation for its quality and offerings.
 Other competitors offer products that complement those offered by Unilever Philippines,
indicating that this is not a scarce resource for the company. This is due to the fact that
other players have access to comparable items and portfolios.
 Unilever's financial resources are deemed to be scarce. Strong financial resources are
only available to a few enterprises in the industry. 
 Strong financial resources are only available to a few enterprises in the industry. • Local
food products are not as uncommon as previously believed. These are readily available
on the market from rivals. This means that competitors can exploit these resources in the
same way as Unilever does, so weakening competitive advantage.
 Unilever's employees are a valuable resource because they are highly trained and skilled,
which is not the case with other firms' employees. The improved salary and working
environment ensure that these personnel remain with the company.
 Unilever's patents are not widely available and are not held by competitors. This enables
the use of them without interference from competitors.
 Unilever's distribution network is a rare privilege, as the company has established a
distribution center that connects the entire Philippines. Competitors would need
 significant expenditure and effort to develop a distribution network superior to that of
Unilever. Additionally, relatively few organizations in the industry possess these.

Imitable
 Unilever's financial resources are hard to recreate because they were accumulated over
time through sustained profits. New entrants and competitors would require comparable
profits over an extended period of time in order to accrue these financial resources.
 Replicating indigenous food products of Unilever is not prohibitively expensive.
Competitors can also gain these if they invest significantly in research and development.
Additionally, these do not require years of experience. As a result, Unilever's local food
items provide a transient competitive edge that competitors can emulate in the long run.
 Unilever's employees are also inexpensive to replicate, as other businesses may train their
personnel to increase their skills. Furthermore, these organizations may recruit Unilever
employees by offering superior wage packages, work environments, perks, and career
prospects, among other things. As a consequence, Unilever's employees become a
resource that can provide a short competitive advantage. These may be acquired by
competitors in the future.
 Unilever's patents are extremely tough to copy because it is illegal to copy a patented
product. Developing similar resources and obtaining a patent for them is equally an
expensive process.
 Unilever's distribution network is likewise very expensive to replicate. Unilever has
gradually developed this over the years. Competitors would need to invest heavily to
establish a similar distribution system.
Organization
• Unilever's financial resources are arranged to maximize value creation because they are
strategically invested in the correct locations, capitalizing on opportunities and addressing
challenges. As a result, these resources provide Unilever with a sustainable competitive
advantage.
• Unilever's patent portfolio is disorganized, resulting in a failure to maximize the value
of these inventions. Unilever currently has an underutilized competitive advantage that can be
converted to a sustainable competitive advantage if it begins selling patented items prior to the
patents expiring.
• Unilever Philippines' distribution network is organized. Unilever leverages this network
to connect with its customers by ensuring that their products are available in all of its retail
locations. As a consequence, these resources provide Unilever with a sustainable competitive
advantage.