INDIVIDUAL PROJECT

VRIO FRAMEWORK ANALYSIS OF UNILEVER AND P&G

DATE

NAME

CLASS

PROFESSOR

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 VRIO Analysis of Unilever and P&G

The value, rarity, imitability, and organizational aspects of firm resources and
competencies are all addressed in this resource-based approach. The resource-
based perspective has recently progressed beyond the classic SWOT analysis. The
VRIO framework, which focuses on the value (V), rarity (R), imitability (I), and
organizational (O) aspects of resources and capabilities, is a new paradigm.

Unilever and P&G are international brands and competitors of each other’s. They
provide various products across the world. They majorly deal in personal care and
products related to hygiene. The VRIO Analysis of Unilever and P&E, will
evaluate the information and provide information on whether it is a valuable
resource or a rare resource. Whether it creates a sustainable competitive advantage,
findings on imitate resources as well as offer competitive advantage to the
organization resources.

Unilever

Valuable – According to the analysis, Unilever’s brands are customer choice, and
they believe that they are doing social and environmental good as well as in
sustainability purchasing in the economy. It will lower the cost of production and
drive growth of the brand and hence reduce risk and maintain perceived customer
value (Unilever - Press releases, 2017). With changing lifestyle and tastes,
Unilever introduced various products and sustainability was the major concern.
They have over 400 brands and are still pioneers of innovation. Using technology,
they are developing products but sustain perceived customer value (strategy
-Unilever). “In the S&P Dow Jones Sustainability Index (DJSI) 2020, Unilever
was designated industry leader in personal products and known for the quality

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 products” (Unilever, 2020). The distribution network of Unilever is one the key
assets which allows it to reach out to an increasing number of customers across the
globe and hence, Unilever will be able to increase its profits. The products are
readily available in the market, it also ensures that promotional actions result in
sales. Employees that have specialised skills sets, and talents work and have a
motive to bring a positive change in the word ( why work for Unilever, Unilever)

Rarity- Unilever is a pioneer of Innovation. They work on open innovation and

provide opportunities to their employees to take part in innovation. The model on
which they work creates value for all stakeholders of the company (Unilever, open
innovation). The company's distribution network is a rare resource. Because
creating a better distribution network than Unilever would take a lot of money and
time, not all the companies have the capabilities to create a big distribution
network (Unilever, 2018).

Imitability- Innovation in Unilever is protected by patents and copyrights. It is

very difficult to imitate Unilever patents and copyrights ( Innovation in Unilever,
Unilever). However, with some investment by the competitors, food products can
be imitated, and competitors can gain the advantage.

Organisation- Unilever has a supplier network which is very big in size and
provides this company a great advantage in terms of accessibility to the customers.
The unique and effective organization skills in the supply network established the
fuller utilization of available resources (Supplier , Unilever). They motivate
employees and reward their innovative ideas such as Unilever Young Entrepreneurs
Awards and encourage them to be an innovator ( The Unilever Young Entrepreneurs
Awards , Unilever).

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 Procter & Gamble (P&G)

Valuable - P&G promotes the use of local products and manufacturing. Using
significant local resources, which adds value to the customer while also
distinguishing itself from competing products available in the market. As a result,
customers recognise these products, and create value for the organisation, which
ultimately adds value to the company (who we are , P&G) . P&G stopped test their
products on animals and they do animal test if it’s a legal requirement and they are
committed to work for animal welfare which is valuable for the company (Block
and Amundson, 2019)

Rarity – P&G focus on innovative technology for their products and use artificial
intelligence, which makes a product extra ordinary for instance razors, blemish
remover and other skin care products, hence making their products rare and
different. They also focus on making products which are environmentally friendly
too (Takahashi, 2019).

Imitability – Using advanced technology, P & E makes products which are

sustainable, environment friendly and not easily imitated. Company is working
towards sustainable forest management. Wood pulp Sourcing policy is one of the
major steps towards protecting the habitat and providing eco-friendly products like
towels, hygiene products, tissues (ESG, Procter & Gamble). P&G hold patents,
licenses etcetera which are essential for manufacturing, which cannot be easily
imitated by anyone (Law insider).

Organisation – P&E got recognition as Canada’s best Diversity employer in 2021.

They provide a better work environment for their employees and focus on the well
being of their staff . Conduct various programs such as annual diversity review,
reducing sigma and many more. They give equal chances to all employees

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 irrespective of their nationality (Yerema and Leung, 2021). P&E have low
employee retention because of the work culture of the company. Procter & Gamble
Co A provides sustainable products and easy availability of products in the stores
gives competitive advantages (who we are , P&E).

Conclusion

Unilever and P&G brand are globally recognized. In terms of monitory resource,
P&G is globally bigger than Unilever. However, comparing the sustainability
products of both companies, Unilever is preferable company by the customers, and
They have over 400 brands and are still pioneers of innovation. In terms of using
the latest technology P&E make its products smarter and environment friendly.
Both companies have patents on their products, which can not be easily imitable.
But the imitable of products can happen because of the duplication of the products
in the market or competitors may with substitute products.

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 References:

Block, K., & Amundson, S. (2019, February 21). Procter & Gamble, maker of
Pantene and Herbal Essences, joins fight to end animal testing for cosmetics.
A Humane World. https://blog.humanesociety.org/2019/02/procter-gamble-
maker-of-pantene-and-herbal-essences-joins-fight-to-end-animal-testing-for-
cosmetics.html

Hindustan Unilever Limited website. (n.d.). The Unilever Young Entrepreneurs

Awards. https://www.hul.co.in/about/unilever-young-entrepreneurs-awards/

Law Insider. (n.d.). P&G patents definition.

https://www.lawinsider.com/dictionary/pg-patents

Procter & Gamble Investor Relations. (n.d.). Pulp. ESG - Environmental - Forestry
- Pulp |
https://www.pginvestor.com/esg/environmental/forestry/pulp/default.aspx

Procter and Gamble. (n.d.). Brands. Who we are. https://in.pg.com/who-we-are/

Takahashi, D. (2019, January 6). Procter & Gamble shows off surprisingly cool
tech in ordinary products. VentureBeat.
https://venturebeat.com/2019/01/06/procter-gamble-shows-off-surprisingly-
cool-tech-in-ordinary-products/

Unilever global company website. (2018). Sharing our expertise in last-mile

distribution. https://www.unilever.com/news/news-and-features/Feature-
article/2018/sharing-our-expertise-in-last-mile-distribution.html

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 Unilever. (2020, December 1). Top sustainability index awards Unilever Industry
leader in personal products. Unilever.
https://www.unilever.ca/news/2020/top-sustainability-index-awards-unilever-
industry-leader-in-personal-products/

Unilever global company website. (n.d.). Index awards Unilever Industry leader in
personal products. https://www.unilever.com/news/news-and-
features/Feature-article/2020/top-sustainability-index-awards-unilever-
industry-leader-in-personal-products.html

Unilever global company website. (n.d.). Innovation in Unilever.

https://www.unilever.com/brands/innovation/innovation-in-unilever/

Unilever global company website. (n.d.). Open innovation.

https://www.unilever.com/brands/innovation/open-innovation/

Unilever global company website. (n.d.). Our approach. Unilever.

https://www.unilever.com/our-company/our-approach/

Unilever global company website. (n.d.). Why work for Unilever.

https://www.unilever.com/careers/why-work-for-unilever/

Unilever global company website. (2017, ).Report shows a third of consumers

prefer sustainable brands. https://www.unilever.com/news/press-
releases/2017/report-shows-a-third-of-consumers-prefer-sustainable-
brands.html

Unilever PLC. (n.d.). Strategy. Unilever. https://www.unilever.com/our-

company/strategy/

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 Yerema , R., & Leung, K. (2020, November 12). Top employer: Procter & Gamble
Inc.. Canada's Top 100 Employers. https://reviews.canadastop100.com/top-
employer-procter-&-gamble

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