Strategic Management

Assignment 1

Submitted to

Dr. Naman Sreen

By

Section B Group 1

Akula Padma Priya PGP12101

Gagan Sharma PGP12116
Gunjan Sharma - PGP12084
Saloni Singh PGP12268
Saumya Chaudhary PGP12073
Shruti Kareliya PGP12071

On

February 1st, 2022

1. The video mentions "supply chain transparency" as one of Sweetgreen's resources. Conduct a
VRIO analysis on this resource. Does it provide a sustainable competitive advantage? Use the
results of your analysis to explain your answer.

VRIO analysis

Valuable: Sweetgreen connected restaurant with local farmers. It introduced consumer

packaging that is compostable and food like steelhead offered in lieu of less sustainable
food like salmon. The company was criticized for price and attracting less than diverse
crowd. They backed up by stating price have gone up to increase wages and benefit for
employees. Food is a new badge product. They further kept annual music festival with
famous artists, collaborated with celebrity chefs. Most of the business happened digitally.
They are further willing to use blockchain and avail technology to give more personalised
experience.

Rare: Yes, I believe this type of resource is rare. Sweetgreen has established an extensive
network of local suppliers or farms to bring fresh ingredients to the company on a daily
basis in order to achieve supply chain transparency. Other rivals will find it difficult to
obtain this competence since it is tough to establish close relationships with so many
suppliers.

Inimitable: Yes, I believe it is not easy to imitate Sweetgreen supply chain transparency
right now. They have direct relations with farmers and producers. They are also using
blockchain techniques so that the customer knows about where their food items are
coming from, when it is picked and when it is prepared. It also stands out from the
competitors since supply chain transparency is difficult to replicate in such a time-
consuming and efficient manner as Sweetgreen does. There is a distinctiveness to each
dish in every store.

Organised: Yes, the company is organized. In the start, the company had received
investment from friends and family. However, just after starting a shop beside campus, it
got a response in a magnified manner and was accepted by many. Since the materials
were procured from local farmers, the supply chain transparency was not only a
competitive advantage as it provided a distinctiveness to each dish in every store in the
country, but also trust of providing original products with quality to the customers.
Another USP was the consistency in innovation in recipes. Moreover, the company had
started charging more prices for employees’’ benefits after a steady presence in the
country. The company’s structure is also bound to change as they are planning to
introduce blockchain in the payment system.
A resource is said to have a sustainable competitive advantage if it is valuable, rare, inimitable
and organised. As supply chain transparency is adding values, rare, difficult to imitate and
supported by the organisation, therefore, it is providing a sustainable competitive advantage.

Supply chain openness offers customers a sense of security, curiosity, and contentment, which
translates into brand loyalty and a rise in the perceived value of Sweetgreen's goods, resulting in
a sustained competitive advantage. It also helps them to stand out from the competition since
supply chain transparency is difficult to replicate in such a time-consuming and efficient manner
as Sweetgreen does, giving them an advantage over competitors.