Framework Of IGA against VIRO analysis Expert Answer

VRIO Framework:

The VRIO Analysis is a tactical instrument to help different firms explore and safeguard the resources and capabilities that can provide them with a competitive advantage in the long run. VRIO is an abbreviation of Value, Rarity, Imitability and Organization through which a company’s competitive advantage is analyzed (Jugdev, 2006).

IGA Super Market:

IGA is known as Independent Grocers of Australia that was brought to the country by David Holdings in the year 1988. The company opened ten retail stores and now have numerous stores around Australia. Currently, all the stores are now owned by independent parties.  IGA is a supermarket firm that was established in Chicago and its branch is in Australia. The IGA supermarket is smaller in size in comparison to Coles and Woolworths, these both are big corporations whereas IGA isn’t (Rushworth & Buttle, 2016). The IGA doesn’t have competitive advantage in any of the three because the rivals of IGA have online applications with Coles providing online recipe that are nutritious in nature. Coles and Woolworths are famous brands and have the same reputation like that of a corporation whereas IGA does not. The customers buying from IGA are not loyal because there is not much variety than Coles and Woolworths, the former also provide an array of different products like clothes, shoes, bags, etc. (Keith, 2016). Rushworth and Buttle (2016) states that Woolworths and Caltex are big competitors of IGA because of the four percent decrease per litre in few dairy products by these companies because of which the customers are opting to buy groceries from these companies rather than IGA. The retail stores of IGA are smaller in comparison to other rivals that compasses of variety of products in the stores of these rivals. Coles group have now added organic products to their products like organic fruits, vegetables, dairy and many more due to which people prefer products that are cruelty free and fresh (Coles, n.d.). Moreover, the overall sales of the supermarket are low than its rivals, 70% of the retail sales are generated by Coles and Woolworths that is a lot (Pulker, Trapp, Taylor, Scott & Pollard, 2018). That is why the company doesn’t have competitive advantage against its rivals in any context.

References:

Indartono, S., & Wibowo, F. W. (2017). VRIO and THES based development of university competitive advantage model in formulating university strategic plan. International Information Institute (Tokyo). Information, 20(10A), 7275-7283.

Jugdev, K. (2005). The VRIO Framework of Competitive Advantage: Preliminary Research Implications for Organizational Innovations as Drawn from a Project Management Study.

Pulker, C. E., Trapp, G. S. A., Foulkes-Taylor, F., Scott, J. A., & Pollard, C. M. (2018). The extent and nature of supermarket own brand foods in Australia: study protocol for describing the contribution of selected products to the healthfulness of food environments. Nutrition Journal, 17(1). doi:10.1186/s12937-018-0404-4

Rushworth, S., & Buttle, F. (2005). IGA and the Coles-Shell Alliance