lupin VRIO analysis value rarity imitability organization

1. 114 Praveen Richard
119 P Bhaskar Rakesh
120 Rahul Tomy
VRIO ANALYSIS
VALUE 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
because studying them under the same head will be doing injustice to
both of them. Hence the two broad categories are-
Tangible Resources-
Manufacturing Units
Human Resource
Products
Acquired Companies
Intangible Resources-
Research & Development
Brand Capital
Social Capital
Brand Awareness
Employee Relationship
Customer Service
RARITY The above values that we discussed in term of Lupin. Would we say that
they are rare when we come to look at the entire Pharma industry?

2. IMITABILITY Can the values that are unique to Lupin be easily imitated by other
potential ?
ORGANISATION Does the current structure of the organisation support the goal of
sustained competitive advantage?
VALUE FACTORS-
TANGIBLE RESOURCES-
Manufacturing Units:
 It is the largest manufacturer of Tuberculosis drugs in the world having onshore and offshore
presence of its products in 70 countries.
 Its manufacturing unit is located in Goa, Tarapur, Ankleshwar, Jammu,
Mandideep, Indore, Aurangabad and Kyowa in Japan
 Lupin has 13 manufacturing facilities all over the world.
Human Resource-
With a culturally diverse team of over 15,000 employees across 21 geographies, lupin has
established itself as one of India’s best places to work in the biotech and pharma sector.
Lupin's on-boarding and induction initiatives, Udbhav and Buddy, assimilate new joiners faster,
enhancing both stability and productivity; while initiatives such as the Spirit of Lupin – Values
Program and PLEDGE – Corporate Governance program align our employees with Lupin’s inherent
value system and high moral standards.
We periodically review and strengthen our People practices, HR programs and Learning initiatives, to
maximize organizational performance.
Continuous employee development is viewed as a basic business input and is treated on par with
investment in technology, research and manufacturing.
The company has formulated and implemented ESOPs to attract retain and motivate the employees
of the company and those of its subsidiaries
Products:
Lupin is a transnational company engaged in development of APIs, generic and branded
formulations.
It is the largest manufacturer of Tuberculosis drugs in the world having onshore and offshore
presence of its products in 70 countries
Acquired companies

3.  Lupin acquired Laboratories Grin Mexico; Specialty Ophthalmic Company; Enters the Latin
American Market.
 Lupin acquires Nanomi B.V. - Enters Complex Injectables Space.
INTANGIBLE RESOURCES-
Research & Development-
 Research park is Located in Pune with the state of the art technology spread across 19 ace
with built area of 150000 sq.ft.
 Home to 320 scientists
 145 patents filed.
 11186 million rupees spent on R&D in FY 2015.
 157 cumulative Drug Master File (DMF) and 210 cumulative Abbreviated New Drug
Application (ANDA) filings respectively.
Brand Equity/ Reputation-
 The Economic Times 500 rankings - India’s 10 most resilient companies
 Dun & Bradstreet Corporate Awards 2014 - Top Indian company in pharma sector
 Great Place to Wok - Best companies to work for 2014.
Social Equity-
 ICRA Limited reaffirmed its "[ICRA] A1+" (pronounced "ICRA A one plus") rating for the
Company's working capital lines of Rs. 15000 million from banks indicating a very strong
degree of safety for timely payment of financial obligations.
 Various socio-economic measures and interventions involving productivity/ income
enhancement, technology transfer and diversification were undertaken in various sectors
such as agriculture, animal husbandry, rural industries, skill enhancement and financial
assistance to the rural poor, aimed at poverty eradication, lifting people above the poverty
line and bringing about economic development of the adopted areas,
 Social development through women empowerment, community health management,
sports activities, education and training in the adopted areas.
 Programme for the purpose of eradication of Tuberculosis.

4. Brand Awareness:
In line with its philosophy of contributing to the well-being of patients, the Company initiated
different educational programmes in order to create awareness about various diseases.
The Company created a dedicated multilingual website ‘Right2breathe’ for education about Asthma
and allergies. In order to increase awareness about various respiratory diseases, the Company
observed various respiratory events like ‘World Asthama Day’, ‘World COPD Day’, ‘World No
Tobacco Day’ etc. where road rallies, tree plantations, poster advertisements are organized.
The Company continued it’s commitment towards TB eradication by creating a unique mobile
application ‘Fight TB’ which is one stop solution to doctors treating Tuberculosis
The Company also identified and collaborated with Doctors and created heart failure clinics across
the country to increase awareness of heart failure management.
Company has created webinar platforms with unrestricted patient/public login disseminating patient
awareness on Cardio Vascular disease. Medical camps were conducted for screening and diagnosis
of various therapy areas like Asthma, COPD, Lipids, Anemia, Diabetes, Hypertension, Uric Acid
measuring camp, Bone Mineral Density.
RARITY-
The rarity of all the value factors can be seen as under-
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. But on the face of t we can say that there is rarity in the factors

5. IMITABILITY-
We can create a similar table as above for the factors in terms of imitability. The details of the same
are as follows-
Factors Are they difficult to imitate in the
Pharmaceutical Industry?
Products:
Tuberculosis
Others
YES
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 to the
smallest detail and hence remove the competitive advantage that it enjoys as on date.
ORGANISATION-
In terms of organisational support for the success and implementation of the needed value chain
Lupin has a robust Organisational 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 industry.
.

6. VRIO ANALYSIS FOR LUPIN
Recommendations:
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.
VALUABLE? RARE?
DIFFICULT
TO IMITATE?
SUPPORTED BY
ORGANISATION?
COMPETITIVE
IMPLICATIONS
PERFORMANCE
No --- ---
Competitive
Disadvantage
Below Normal
Yes No No
Competitive
Parity
Normal
Yes Yes No
Temporary
Competitive
Advantage
Above Normal
Yes Yes Yes
Sustained
Competitive
Advantage
Above Normal
YES