Dwayne Johnson Enterprises (DJE) is a firm in the pet rock industry. They have an exclusive contract with Diesel Industries for a rare, earth element called Dyn–ite, used in their “The Rock” 5000 pet rock product. Diesel had been the only miner of Dyn–ite for several years, but other mining companies (e.g., Cena Minerals) now have operational Dyn–ite mines. Currently, DJE’s competitors (e.g., Statham Inc.) use other minerals for their pet rocks. In industry marketing studies, researchers from Toretto Analytics consistently find that pet rock preference is driven almost exclusively by brand.Below analyze DJE’s resources, using the valuable, rare, inimitable, and non–substitutable criteria from the resource–based view (“RBV”) of the firm.
Dyn-ite (the element)
Valuable? Why?
Rare? Why?
Inimitable? Why?
Non-substitutable? Why?
Can this resource lead to a sustainable competitive advantage?
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