VRIO EXERCISE: USING RESOURCES TO SUSTAIN AN ADVANTAGE Based on three case studies taken from Mintzberg and Quinn (1991) Ernest & Julio Gallo The New York Times Sony Corporation PRODUCT OR SERVICE: PRICE AND MARKETING STRATEGY Early market strategies featured a Unlike most newspaper, the Began as a producer of cheap low- cost leadership strategy and strict number of news page is not linked end electronics such as the control of distribution channels. to a ratio based on advertising "Walkman" and was not selective in space sold product mix MARKET CONDITIONS DICTATE REFOCUSING FOR BOTTOM LINE ORIENTED STRATEGIES Responding to increasingly After a short period of other media Shifted its core competency toward sophisticated consumers, adopted acquisitions it began divesting research and development. A a differentiation strategy focused many of them to refocus on core differentiation strategy was on higher priced quality product. business and electronic delivery of implemented by focusing on high end news. quality products IMAGE IMPACTS FINANCIAL HEALTH Image changed from cheap low Maintains its 150 year old image as Sony was instrumental in changing quality to higher quality but still America's benchmark news Japan's image from imitator to reasonably priced product. source. Is true to its mission of all innovator. Strategy presently seems the news that's fit to print". more focused on implementation than on formulation CORPORATE STRUCTURE Corporate structure is likely The company has moved away Sony is ambivalent as to whether or product divisional but the business from becoming a conglomerate not it is or will become a remains under family control. and is either divisional or SBU conglomerate and remains a strategic business unit structure Rate each of the above five vertical axis elements as high, medium or low. The more closely each fits the Wheelen and Hunger definitions, P 130/131, the higher the value and give your reasons in a single sentence. 1. Emest & Julio Gallo 5 elements Rating Your reasoning Durability Imitability Transparency Transferability Replicability 2. The New York Times 5 elements Rating Your reasoning Durability Imitability Transparency Transferability Replicability Your reasoning 3. Sony Corporation 5 elements Rating Durability Imitability Focus