Strategic Analysis and Action Plan for Yokogawa | Desklib

Running Head: MARKETING MANAGEMENT
Topic-Strategic analysis of Yokogawa
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2MARKETING MANAGEMENT
VRIO framework
The four questioned business analysis frameworks of
VRIO establishes the capability of an organization or
a resource to determine the competitive potentiality
of it (Knott, 2015). It incorporates the question of
Value, Rarity, Imitability and Organization ability.
The VRIO of Yokogawa includes,
Value- It has the core value statement of
“individually, we aim to combine good citizenship
with the courage to innovate”. This value statement
provides an outlook of company culture and
employee engagement.
Rarity- The approach of ‘process co-innovation’ and
business automation is what that differentiates Yokogawa from its competitors.
Imitability- The compact sustainability goals so developed are difficult to imitate and Yokogawa
has advantage in global sustainability. Inclusion of net-zero emission, well being and circular
economy into one is really praiseworthy.
Organization- Both the structure and culture of Yokogawa work environment is very employee
friendly and such good corporate philosophy helps in long run competitive sustainability.

3MARKETING MANAGEMENT
The main sources of competitive advantage of Yokogawa are,
 Good relationship maintenance with end customers
 Value creation and capitalization of new opportunities in bio-economy business
 Cost reduction in production and logistics supported significant and sustainable growth
 Both internal and external growth in terms of financials and expansion strategies have
added to its success
 Expansion plans outside Japan and considering global business presence will add to
competitive advantage in near future
Yokogawa has good strategic control of its internal factors but external issues are not controlled
and are difficult to control as business firms has little influence in governmental policies,
political changes and socio-economic differences (Sax and Andersen, 2018). Yokogawa has not
approached the strategic management in the way it needed to and need to be more adoptable in
controlling external changes so that success for competitive advantage is leveraged effectively.
Change in regulatory practices in Japan, inflation, governmental interventions, value and societal
norms, demographic changes and technological changes all need to be considered to have
holistic success in sustainable development (Yokogawa.com, 2019).