Question

Johnson Matthey Battery

1. Use the VRIO framework to identify the competitive position held by your firm.  Which of these resources are helpful in sustaining the firm’s competitive advantage?  Why is each important?

Answer 1

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Internal analysis (VRIO)

VRIO stands for (Value, Rarity, Inimitable, Organization)

• Value- This is a capability of a firm to maximize utilization of opportunities while minimizing weakness in an organization. Johnson Matthey Battery formerly called Axeon, designs and manufactures advanced lithium-ion battery systems for electric vehicles and processes over 70 million cells per year.
• Rarity- This means that there is scarcity of certain resources and you cannot acquire them from competitors. Only few number of firms have control Johnson Matthey Battery products thus making it possible for invention and reinvention and giving it competitive advantage over their competitors.
• Inimitable-This means inability of firms to make or produce substitutes. Firms have a major shortcoming in acquisition of Johnson Matthey Battery resources this is due to perceptual behaviour of customer’s loyalty towards Johnson Matthey Batteries
• Organization - This means that firms own resources and utilize them to outdo their competitors. The policies are put in place to exploit resources in Johnson Matthey Battery.

Johnson Matthey Battery Systems is a global science leader which makes the earth cleaner and healthier. In addition, one of Europe's leading suppliers of Lithium-ion battery systems to the industrial, pharmaceutical and medical sectors. JM focuses on innovation by cutting-edge research and technology. JM's strategic emphasis is to increase thier product porfolio and market penetration. As per the ansoff matrix, JM uses market penetration strategy to cater for the current market and find ways to extend to test other materials as well.

They aim to launch eLNO production in line with thier strategy to break out growth in Battery Materials. Hence, their strategy is to deliver break-out growth in battery materials with launch-leading cathode materials technology. They invest extensively in R&D and production, in order to be able to sustain the highest material quality.

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