The company I chose from the country I live in is Pliva, a pharmaceutical company that was founded

in 1921 in Zagreb, Croatia. The company was initially engaged in chemistry as a primary activity, but
later became a pharmaceutical company. Pliva has a long history of innovation - it was the first
company in the world to develop a synthetic antibiotic called azithromycin, which is used to treat
bacterial infections.

Pliva has a broad portfolio of products and services that includes prescription drugs, over-the-counter
products and active pharmaceutical ingredients. Pliva's presence on the market is significant, and it
has expanded its operations to other European countries, the Middle East and North America.

In 2006, Pliva was bought by one of the largest manufacturers of generic drugs in the world, the
Israeli pharmaceutical company Teva. The acquisition gave Pliva access to Teva's global distribution
network and helped the company expand its reach into new markets.

Pliva's success is due to its focus on research and development, the result of which is the
development of innovative products that meet the needs of patients and healthcare providers.

Pliva focuses on responsible business and sustainability. It has implemented various initiatives to
reduce its impact on the environment, such as reducing waste, conserving energy and using
renewable sources. Pliva also supports various social projects and provides assistance to patients in
need.

Pliva's website is https://www.pliva.com/.

1. Discuss the tangible and intangible resources this firm has. Suggest which resources it can
build and which ones it can maintain.

Material and non-material resources of Pliva: Pliva has several material resources: modern
production facilities, machines, equipment, distribution channels and financial resources. The
company has invested heavily in research and development to develop a wide range of
pharmaceutical products. In addition, the company has established strategic partnerships with other
pharmaceutical companies, which gives it access to new products and markets.

Pliva also has a large number of intangible resources: patents and intellectual property, which gives it
a significant competitive advantage. As mentioned earlier, one of Pliva's most famous patents is the
antibiotic azithromycin, which Pliva first developed in the 1980s. It is used to treat a wide range of
bacterial infections, and this revolutionary discovery contributed to Pliva's success in the
pharmaceutical industry.

In addition to azithromycin, Pliva has patents for other innovative pharmaceutical products such as
the generic drugs Lipitor and Nexium. With this patent, the company established a strong presence in
the generic drug market.

One of Pliva's intangible resources is an educated and highly qualified workforce. Most of them were
educated at the Faculty of Pharmacy in Zagreb.

Pliva in Croatia has a great reputation and customer loyalty, and this can also be considered an
intangible resource.
In order to maintain resources, Pliva should continue to invest in research and an educated workforce
in order to maintain its competitive advantage. It should also expand its portfolio with new drugs.

2. Explain which resources are heterogeneous and immobile in this firm and why?

Heterogeneous resources are those that are unique to a particular firm and cannot be easily
Heterogeneous resources are difficult to copy; they are unique to the company. Some of Pliva's
resources that I listed earlier, which can be considered heterogeneous, are patented drugs, highly
skilled workforce and modern production facilities. These resources help Pliva gain a competitive
advantage because the competition does not have equal production options. An immobile reusrs is
exactly a drive. It is a resource that is difficult to replicate in other locations or transfer there. The
expertise and knowledge of Pliva's staff is also an immovable resource. Heterogeneous and
immovable resources are the most valuable assets of the company.

3. Perform a VRIO analysis (Valuable-Rare-difficult to Imitate-Organized to capture value) of

the firm’s resources and identify its competitive advantage. Based on this analysis, discuss
what leads to differential performance for any firm.

Based on this analysis, Pliva's competitive advantage likely lies in its ability to offer innovative
pharmaceutical products and cost-effective production processes. The company's expertise in drug
development and manufacturing, along with its strong organizational culture and commitment to
innovation, provide a valuable and rare resource that is difficult to imitate by competitors.

Valuable: Pliva's resources already listed, which include assets (tangible and intangible) including
plant and human resources. Plivina's presence on the market, especially in the segment of generic
drugs, is a great value for customers.

Rare: Pliva's patents and long history of research are rare and resources in the pharmaceutical
industry. Thanks to them, Pliva can differentiate itself from its competitors and establish a
competitive advantage.

Difficult to imitate: It is difficult for the competition to imitate Pliva's resources. This primarily refers
to patents, but also to the loyalty that Pliva has among its customers and its long-standing tradition.

Organized to capture value: The company is oriented toward generic drugs, which allows it to offer
products at lower prices than competitors. on

VRIO analysis is useful for defining a company's competitive advantage. Resources that are valuable,
rare and difficult to copy allow the company to express itself and be at an advantage over the
competition.

However, this advantage can change over time. Valuable and rare resources don't have to be that way
after a while, and the possibility of copying may come. They can also be influenced by external
factors: changes in the market (such as we have seen lately). It is swimming in changes such as
inflation and the state of war successfully resisted until now, but in the general committee there is
concern. It is important to emphasize the extremely high level of corruption in Croatia and the non-
enforcement of the law. The climate is not favorable to entrepreneurs.
PLiva is a company that successfully adapts to changes in the market, and apart from the competitive
advantages it has, a certain amount of caution and conservatism is also on the company's side and
helps in progress.

Pliva website: https://www.pliva.com/

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