Diaper Wars

Key Internal Factors | Weight | Rating | Weighted Score |

Internal Strengths |   |   |   |

1. Home consumer product goods manufacturer | 0.050 | 4.000 | 0.200 |

2. Innovative product | 0.150 | 4.000 | 0.600 |

3. Career Development programs | 0.150 | 4.000 | 0.600 |

4. Supply Chains | 0.050 | 3.000 | 0.150 |

5. Management | 0.100 | 3.000 | 0.300 |

6. Discounted pricing structures | 0.150 | 3.000 | 0.450 |

7. Long-term development | 0.050 | 4.000 | 0.200 |

8. Brand Quality | 0.100 | 3.000 | 0.300 |

9. Outperforming Financial Ratios | 0.050 | 3.000 | 0.150 |

Internal Weaknesses |   |   |   |

1. Products aren't a personal necessity | 0.035 | 1.000 | 0.035 |

2. Little brand focus | 0.035 | 2.000 | 0.070 |

3. Narrow margins | 0.030 | 2.000 | 0.060 |

4. Large operating costs | 0.025 | 1.000 | 0.025 |

5. Marketing Ventures | 0.025 | 1.000 | 0.025 |

  | 1 |   | 3.165 |

VRIO Analysis

| Valuable | Rare | Imitable | Organization |

Innovative products | Yes | Yes | Yes | Yes |

Management | Yes | Yes | No | No |

Discounted pricing structures | Yes | No | Yes | Yes |

Brand Quality | Yes | Yes | Yes | Yes |

| | | | |

Innovative products:

VRIO analysis: These products are valuable and rare, as they proved profitable for K-C and typically required P&G releasing a product after K-C had already released theirs. The development of the products aptly utilized and exploited the competencies of the organization. These product innovations are imitable, which requires K-C to constantly be researching and developing an even more innovative product to stay ahead of the competition.

Management:

Management re-invests the excess profit into further product improvements

* Strong relationship between improved product features and market and sales growth and cost of products improvements could be passed on, as many consumers seemed to show a high degree of price indifference.

VRIO analysis: The expertise and efficiency of the...