Competitive Advantage Analysis of a Local Bakery Company in Indonesia Using the VRIO Approach and Dynamic Capabilities

This study aims to analyze the internal sources of competitive advantage in Bakery X, a local bakery enterprise in West Java, Indonesia, by applying the VRIO framework and the Dynamic Capabilities approach. Using a qualitative descriptive method, the research draws on data collected through in-depth interviews, observations, and documentation. The findings reveal that several internal resources, including human resources, organizational culture, technological capability, and operational efficiency, are categorized as valuable, rare, inimitable, and well-organized, indicating that they form the foundation of sustainable competitive advantage. Furthermore, the company demonstrates strong dynamic capabilities, particularly in sensing market opportunities, seizing innovation initiatives, and Transforming internal processes to adapt to changing customer preferences and competitive dynamics. The integration of VRIO and dynamic capabilities analysis highlights how strategic alignment between valuable resources and adaptive capabilities can enhance the firm's long-term competitiveness. The study provides managerial implications for strengthening internal resources and improving strategic agility in the face of an increasingly competitive industry environment.