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Publix Super Markets VRIO / VRIN Analysis | Assignment Help
What is VRIO / VRIN Analysis ?
VRIO stands for – Value of the resource, Rareness of the resource, Imitation Risk, and Organizational Competence.
VRIO is a resource focused strategic analysis tool.
To build a sustainable competitive advantage the resources that –casename— needs to be valuable, rare, and difficult to imitate. Secondly the –casename— needs to possess capabilities, organizational structure, and culture to optimize the available resources usage. VRIO analysis can help organizations such as Publix Super Markets to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Publix Super Markets? Defining Valuable in VRIO
A resource or capability is considered valuable for Publix Super Markets , if it allows the
Publix Super Markets to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Publix Super Markets to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Publix Super Markets.
What are Rare Resources for Publix Super Markets? Defining Rare in VRIO
In an industry that Publix Super Markets operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Publix Super Markets require rare resources to compete in the industry. If Publix Super Markets don’t have rare resources that are required to succeed in the industry then Publix Super Markets won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Publix Super Markets competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Publix Super Markets? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Publix Super Markets for certain period of time as all the competitors are going to try to imitate or replicate that resource. A sustained competitive advantage emerges, if the resource is difficult to imitate by the competitors. Publix Super Markets can create inmitability by innovating on the product side, reducing pain points on service delivery, and having an effective post sales servicing strategy.
Check out the SWOT analysis of Publix Super Markets
What is a Organization for Publix Super Markets? Defining Organization in VRIO
Even if the Publix Super Markets has all the valuable resources that are both rare and difficult to imitate, it won’t automatically result into a sustainable competitive advantage. The key to build the sustainable competitive advantage is to have organizational capabilities, expertise, and structure to exploit the resources. If Publix Super Markets is not organized based on its strengths then it won’t able to exploit all the resources that it possesses.
Resources | Value | Rare | Imitation | Organization | Competitive Advantage |
---|---|---|---|---|---|
Access to Cheap Capital for Publix Super Markets | Yes, as a leading player in the industry and current macro economic conditions, Publix Super Markets has access to cheap capital | No | Can be imitated by the competitors of Publix Super Markets | Not been totally exploited | Not significant in creating competitive advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Publix Super Markets to thwart competition | Yes, IPR and other rights are rare and competition of Publix Super Markets will find it extremely difficult to copy | Risk of imitation is low but given the margins in the industry disruption chances are high | So far the firm has not utilized the full extent of its IPR & other properties | Providing Strong Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Publix Super Markets operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Publix Super Markets is successful at it | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – Publix Super Markets retail strategy | Yes, Publix Super Markets has strong relationship with retailers and wholesalers | Yes, Publix Super Markets has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Opportunities in the E-Commerce Space for Publix Super Markets - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Publix Super Markets can exploit the emerging opportunities | No, most of the competitors are investing in IT to enter the space | The AI and inhouse analytics can be difficult to imitate | It is just the start for the organization | In the long run it can provide sustainable competitive advantage |
Marketing Expertise within Publix Super Markets | Yes, firms are competing based on differentiation in the industry | No, as most of the competitors also have good marketing departments and expertise | Pricing strategies of Publix Super Markets are often matched by competitors | Yes, Publix Super Markets is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Sales Force and Channel Management of Publix Super Markets | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Publix Super Markets sustainable competitive advantage. Potential is certainly there. |
Global and Local Presence of Publix Super Markets | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Publix Super Markets but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Publix Super Markets Customer Network and Loyalty | Yes, 23% of the customers contribute to more than 84% of the sales revenue | Yes, firm has invested to build a strong customer loyalty | Has been tried by competitors but none of them are as successful as Publix Super Markets | Publix Super Markets is leveraging the customer loyalty to good effect | Provide Publix Super Markets medium term competitive advantage |
Brand awareness of Publix Super Markets products and services | Yes, the brand awareness of Publix Super Markets products are high | Yes, Publix Super Markets has one of the leading brand in the industry | No | Publix Super Markets has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Publix Super Markets | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Successful Implementation of Digital Strategy at Publix Super Markets | Yes, without a comprehensive digital strategy it is extremely difficult to compete | No, as most of the firms are investing into digitalizing operations | Can be imitated by competitors | One of the leading player in the industry | Digital strategy has become critical in the industry but it can't provide sustainable competitive advantage to |
Financial Resources of Publix Super Markets | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Publix Super Markets has reasonably sound financial position | Publix Super Markets has relatively sustainable Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of Publix Super Markets | Yes, it is valuable in the industry given the various segmentations & consumer preferences. | Most of the competitors are trying to enter the lucrative segments | Can be imitated by the competitors | The firm has used it to good effect, details can be found in case exhibit | Provide short term competitive advantage but requires constant innovation to sustain |
Publix Super Markets SWOT Analysis, SWOT Matrix, Weighted SWOT Case Study Solution & Analysis
Books and References
Ahir Gopaldas and Anton Siebert (2022 July August) "What You’re Getting Wrong About Customer Journeys",
Harvard Business Review , 92
Linda A. Hill, Emily Tedards, and Taran Swan (2021) "Drive Innovation with Better Decision-Making", Harvard Business Review 86
Dyer, J. H., & Hatch, N. (2004). Using Supplier Networks to Learn Faster. Sloan Management Review, 45(3), 57–63
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99–120
Dyer, J. H., Kale, P., & Singh, H. (2004, July–August). When to ally and when to acquire. Harvard Business Review, 109–115
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