You are on page 1of 5


In terms of the value that we are studying under this VRIO model we will be
dividing the main value proposition of Lupin into two main parts :–
Tangible Resources-
Manufacturing Units
Human Resource
Acquired Companies

Intangible Resources-
Research & Development
Brand Capital
Social Capital
Brand Awareness
Employee Relationship
Customer Service
On the basis of study of above factors it was found that Lupin has a valuable
presence in the pharmaceutical industry.

Factors Are they Rare in the

Pharmaceutical Industry?

Manufacturing Units No
Human Resource No
Products No
Research and Development No
Brand Equity/Reputation Yes
Social Equity Yes
Brand Awareness No

In terms of Rarity of the Factors we see that mostly the factors

of differentiation Lupin are on the not very rare side.
Factors Are they difficult to imitate in
the Pharmaceutical Industry?

Tuberculosis YES
Others NO
Human Resource No
Manufacturing Unit No
Brand Equity/Reputation YES
Social Equity NO
Brand Awareness No
Research and Development No

Thus it is clear that imitability of the factors of value is not that a difficult task and to
maintain the competitive position that Lupin enjoys currently it will continuously
have to keep upgrading itself in order to make sure that the other competitor are not
able to imitate its business model .

In terms of organizational support for the success and implementation of the needed value
chain Lupin has a robust Organizational framework on which it is working and if it maintains
its value proposition while continuously improving upon its factors of differentiation there
is definite potential of sustained Competitive advantage for the company in the pharma

Presently Lupin is having temporary competitive advantage in case of

Tuberculosis drugs. In order to move from competitive parity to
sustained competitive advantage company should focus more on
speciality drugs which are patent than generic drugs. Company should
also explore new market areas and increase the overall market share.