In evaluating a companies strengths and weaknesses there are many theories as to how value or strength is measured. When meshing all of these theories together the Resource-Based Model is formed to give a better understanding of a companies costly-to-copy or imitate effectiveness from a resource view. When looking at resources from this model there are 4 certain areas that encompass a firms resources: financial, physical, human and organizational capital. From there the VIRO framework is applied to identify the level of competitiveness a company has.
Sam Adams' VIRO Framework application:
Q: Value? Yes, Sam Adams is a company that values their employees and being a small craft brewer producing less that 2 million barrels annually, they are a giant in the small, independent, and traditional craft brewing segment. The type of quality and coordination that they put into the value chain is yet to be rivaled by any one in their segment.
Q: Rarity? Yes, As mentioned above, Sam Adams fits into the craft brewers segment of the beer industry. The resources and experience that they carry exceed all other companies in this segment. Although there are a few other companies that are surfacing, Sam Adams has a strong foothold on the leadership in the craft brewers market.
Q:Imitability? Yes...One would say that there are many other brewing companies that could imitate what Sam Adams does and obtain the same resources. The answer is that they could... but according to the Brewers Association less than 25% of the Craft Brewery is owned or controlled by an alcoholic beverage industry member who is not themselves a Craft Brewer. This makes Sam Adams' model hard to duplicate or substitute.
Q: Organization? Yes. Sam Adams and their management let the customers and employees know upfront that they are a company that values innovation and a growing knowledge of their trade. With all of the experience Sam Adams carries they are able to exploit the advantages that they carry in the Craft Brewers market.
Being able to satisfy all of the questions with a "yes," Sam Adams carries a "strategic advantage" in the market that they participate in.
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