Question

VRIN framework analysis of Burger King

Burger King Organizational Resources & Capabilities	V	R	I	N
Moderate uniqueness of food products based on BK-specific recipes
Partnerships with third-party delivery services
New technologies for efficient order processing
Expansive supply chain
Effective & efficient human resource
Effective marketing strategy

Answer 1

Answer:

VRIN framework analysis of Burger King

The VRIN framework explains the competitive advantage of a company based on the internal competencies and resources of the company.

V represents the resource in the organization that will project its value as a means of gaining competitive advantage( value)
R represents the rarity in the resource or strategic capability in possession with the company ( Rareness)
I represent the resources that cannot be imitated by competitors (immitability)
N represents those resources whose substitution possibility is very low (Non-substitutable)

Burger King- VRIN Framework analysis
Valuable- The notable value offered by burger king is its cost leadership strategy where its operating costs are maintained reasonably low to offer fresh products at competitive prices to the customer. Hence consumers get high-quality food at competitive prices. This is much visible from the mission statement of Burger King

Rare- Their capability to gain competitive advantage by leveraging economies of scale and reducing the wastage of resources, as well as their strong market penetration strategies, are rare. It also gains its rarity by ensuring that food is served quickly with a due assurance of offering the cleanest surroundings

Imitability – Burger king is known for offering greater flexibility in choices for its customers, which is possible due to its financial capability. Its aids in cost competitiveness by reducing wastages. Its brand name is strong among consumers, as a company offering good quality products. It stands as a testimony to its growing customer base. The company has a high focus on customer health and has the most stringent quality process standards in operations that cannot be imitated.

Nonsubstitutable – The focus on service quality, training of its manpower, the strict adherence to nutritional value and quality standards are non-substitutable. It is easy to imitate a product range that is not patented, but the culture of a company cannot be imitated which stands as the competitive advantage of Burger king

Burger King Organizational Resources & Capabilities
Their organizational resources included the company-owned restaurants, as well as buildings offered on lease. This has been a major source of revenue-generating resources. The products were sold through company-owned restaurants as well as through the franchise business models which generated profits, and revenue is also generated through royalty. The leased properties were a source of revenue in terms of rent in addition to the margin on profits. However later the company consolidated its business to almost 100 % franchisee model. They have today penetrated to more than 100 countries world over. The intangible resources and their strict adherence to health, quality, safety, educed wastages and a greater assortment of products for customers are the capabilities that helped it gain its competitive advantage

Moderate uniqueness of food products based on BK-specific recipes
While most of Burger King’s competitors focused more on burgers, Burger King offers a wide variety of healthy sandwich options that are unique to attract the palette of the customers it catered to. They offer products at competitive prices and are into continuous innovation to maintain uniqueness in their offering when compared to their competitors by focusing on the health and freshness of the produce. They vary their product to suit the taste of the customers by localizing the ingredients based on the country of operations.

Partnerships with third-party delivery services

Burger King relies on the services of local on-demand food delivery partners to serve food at a cost-effective manner (eg.,) DoorDash, Uber eats in US and Canada, Swiggy in India, etc., This partnership permits the company to leverage the competitive strengths of the third party delivery services for furthering the business.

New technologies for efficient order processing
Burger King utilizes the digital media boards as well as kiosks to create pleasant experiences for the customer visiting restaurants. They also have enabled smartphone app as well as geo-locating technology to reach out to customers. The customer is offered an opportunity to track the status of their order through their smartphones.

Expansive supply chain

The franchise model practiced by Burger king offers a wide penetration into various countries with over more than 10,000 outlets. Following a localization approach, the supply chain through partnerships with localized technology-based service providers ensures the flow of raw materials and products with efficient tracking and timely delivery.

Effective & efficient human resource –
The human resources policies at Burger King ensures that the employees are well trained to offer the best in class service to the customers. The adherence to strict quality standards as well as best in class training to ensure employees offer customer comfort at every stage of the buying process is unique to Burger King They are trained to handle issues in a professional manner and manage the work culture with greater autonomy. They have good HR systems in place to ensure the employee offers a delightful experience to customers through frequent motivations, training as well as reward systems.

Effective marketing strategy

The Franchisee model enables the company to expand itself faster with lesser capital. The support in terms of innovation in products can help franchisees establish faster as well as scale up their business and ensure operational success. This fosters a healthy relationship and a long term relationship with Burger king which is the competitive advantage of Burger king