VRIO Framework Of Woolworths, Coles, and IGA 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).
Woolworths Supermarket:
| Woolworths | Value | Rarity | Imitability | Organization | Competitive Advantage |
| Brand Name | Yes | Yes | No | Yes | û |
| Online | Yes | No | No | Yes | û |
| Clientele Loyalty | Yes | Yes | Yes | Yes | ü |
Coles Super Market:
| Coles | Value | Rarity | Imitability | Organization | Competitive Advantage |
| Brand Name | Yes | Yes | No | Yes | û |
| Online | Yes | No | Yes | Yes | û |
| Clientele Loyalty | Yes | Yes | Yes | Yes | ü |
IGA Super Market:
| IGA | Value | Rarity | Imitability | Organization | Competitive Advantage |
| Brand Name | Yes | Yes | No | No | û |
| Online | Yes | No | Yes | Yes | û |
| Clientele Loyalty | No | No | No | No | û |
Woolworths is among the top supermarkets working in Australia currently. Woolworths is the most trusted super store considered in the country. Nowadays everything is digitalized likewise, the supermarket firm have also provided the customers with the ease to grocery shopping rather than going outside Woolworths have offered the luxury of ordering the groceries at home (Youl, 2019). Recently, Woolworths have reduced their price to attract the customers and for those who couldn’t afford previously can afford now. In comparison to Coles both of the supermarkets are similar however, Coles’ online shopping website provides recipes as well as grocery shopping however, Woolworths website only provide grocery shopping. Both the companies do not have competitive advantage in second capability because they both are similar as they both have an online application where individuals can shop online without the hassle of going outside. 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 both the companies above have online applications with Coles providing online recipe that are nutritious in nature. Both the companies above are known 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, organic fruits and vegetables etc. (Keith, 2016).
References:
Jugdev, K. (2005). The VRIO Framework of Competitive Advantage: Preliminary Research Implications for Organizational Innovations as Drawn from a Project Management Study.
Keith, S. (2012). Coles, Woolworths and the local. Locale: The Australasian-Pacific Journal of Regional Food Studies, 2, 47-81.
Rushworth, S., & Buttle, F. (2005). IGA and the Coles-Shell Alliance.
Youl, T. (2019), ‘Supermarkets and Grocery Stores in Australia’, IBIS World.
