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TJX 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 TJX to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for TJX? Defining Valuable in VRIO
A resource or capability is considered valuable for TJX , if it allows the
TJX to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow TJX to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for TJX.
What are Rare Resources for TJX? Defining Rare in VRIO
In an industry that TJX operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. TJX require rare resources to compete in the industry. If TJX don’t have rare resources that are required to succeed in the industry then TJX won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide TJX competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for TJX? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to TJX 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. TJX 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 TJX
What is a Organization for TJX? Defining Organization in VRIO
Even if the TJX 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 TJX 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 Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with TJX dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that TJX operates in | No, none of the competitors so far has able to imitate this expertise | Yes, TJX is successful at it | Providing Strong Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of TJX | 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 |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for TJX to thwart competition | Yes, IPR and other rights are rare and competition of TJX 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 |
Global and Local Presence of TJX | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of TJX but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Financial Resources of TJX | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | TJX has reasonably sound financial position | TJX has relatively sustainable Competitive Advantage |
Opportunities in the E-Commerce Space for TJX - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and TJX 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 |
Brand Positioning of TJX in Comparison to the Competitors | Yes | No | Can be imitated by competitors but it will require big marketing budget | Yes, the firm has positioned its brands based on consumer behavior | Temporary Competitive Advantage |
Opportunities in the Adjacent Industries that TJX can exploit & New Resources Required to Enter those Industries | Can be valuable as they will create new revenue streams | No | Can be imitated by competitors | All the capabilities of the organization are not fully utilized yet | Has potential |
Sales Force and Channel Management of TJX | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide TJX sustainable competitive advantage. Potential is certainly there. |
Position among Retailers and Wholesalers – TJX retail strategy | Yes, TJX has strong relationship with retailers and wholesalers | Yes, TJX has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Track Record of Leadership Team at TJX | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of TJX | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, TJX strategy is built on successful innovation and localization of products | Yes, as talent is critical to firm's growth | Difficult to imitate for the current competitors of TJX | To a large extent yes | Providing Strong Competitive Advantage |
TJX 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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