One of Pompeian’s resources is its bottling facility and its access to raw material. Their skill or capability in using the resources are in their ability to reduce costs in manufacturing the product, pass that cost saving to consumers, and investing in new products while increasing market share giving them an advantage over the competition.
Is it Valuable? – The resource, having access to raw material through their partnership allows Pompeian to forecast available inventory and adjust manufacturing plans. The disadvantage that the company could endure would be if other regions in the Mediterranean, Italy for example, grows more in production but Pompeian would be reliant on using crop from the land they have ownership in. …show more content…
Access to raw material is not rare in the case of olive oil, the rarity of the situation that the company enjoys is the immediate access to the material. Spain being the largest producer of olive and Pompeian having a partnership with the largest grower makes the situation rare in the industry. The other resource the other branded companies to not have, is there own bottling facility. A competitive advantage that would give the company is its ability to shift production as needed based on sales forecasts. The lead time for product to reach the states can be 4-6 weeks and with the changing sales environment, it would be a benefit to have raw material in bulk and be able to shift production from one pack size to …show more content…
Competing on deep promotions, eventually will have a negative effect on the industry. Deteriorating prices in a maturing market can give rise to consumers having to switch back to soybean or canola oil and lessen the quality of the olive oil sourced. Short-term, Pompeian will continue to gain market share by selling product basically when it is being offered at buy one get one deals and investing in the quality and traceability traits of the product, but will run into trouble if they base their long-term campaigns on that and have to look to other countries for