Coles Supermarket is an Australian consumer and retail service chain. The company is headquartered in Melbourne. It is a part of Coles Group. Coles is operating around 807 supermarkets across Australia, many of the supermarkets are rebranded as BI-LO supermarkets. The company is employing more than 100,000 people. The company has acquired huge part of market share among competitors. The company also provide online shopping facility and good customer service to retain the position in the industry (Coles, 2020).
The article is about VRIO analysis of Coles. VRIO model is an analytical tool used for assessing and identifying the company’s resources and capabilities. There are four components of the framework: Value, Rarity, Imitability and Organization. To achieve sustained competitive advantage, it is necessary for the company to achieve all the components.
Value
This is the first component of the framework which questions that whether company possess valuable resources or not? As this helps in adding more value in the company operations. The valuable resources help the company with availing more opportunities. Coles’ store design is unique and valuable. It is very attractive, which helps it in attracting consumers. Moreover, the supermarket provides reduced prices to consumers with wide product range. The company’s online grocery facility provides it edge over competitors like Tesco, Metro, etc. The backward integration of Coles with raw vegetables and fruit providers is also a valuable resource. This adds more value in the business operations of Coles (My assignment, 2020).
Rarity
Company should have rare resources for achieving the competitive advantage. Resources and capabilities which are rare, and not easily accessible to competitors are unique, and beneficial for the company. The valuable and rare resources help the company in achieving comparative parity. Coles deliver fresh vegetables and fruits to its customers, which is considered as rare capability among competitors. Coles Organics is the unique brand providing services of fresh dairy products, vegetables, fruits and meat. These products do not make use of any chemicals, pesticides, fertilizers for growing crops or animals. Coles Simply less is designed for the health-conscious people and has high market share in the industry (Sandeep, 2012).
Imitability
Resources and capabilities have to be costly so that no other competitor can replicate it. Moreover, the resources should be hard to imitate or find the substitute. It is necessary for the company to achieve such capabilities and resources. The company should make its operations, procedures, or ingredients etc which make it distinct. In the business segment where Coles is operating, imitability rarely exist, as the industry works according to the competitors and retail sector. The value chain is the company exits with the Wesfarmers acquisition of Coles and this provides the major benefit to company. The company is culturally integrated (Sandeep, 2012).
Organization
It is necessary for the company to have organized system and structure. Companies who achieve valuable, rare, hard to imitate and organized resources can have sustained competitive advantage. It can enjoy different benefits in the industry, however, retaining the competitive advantage requires maintenance. Coles is one of a leading supermarkets in Australia, whose operations and systems are well-organized. The company has defined structures and policies. Its employees motivated workforce who are trained and skilled in their own expertise. The supply chain and distribution network of the company is well managed and work efficiently (Supply chain analysis, 2020).
Conclusion
Coles is one of a leading supermarket and retail chains in the Australian retail sector. The company has achieved sustained competitive advantage, which helps it in growing and achieving more benefits and opportunities. It is maintaining its customer base by providing good facilities.
| V | R | I | O | ||
| Supply Chain | ✓ | ✓ | ✓ | Competitive Parity | |
| Prices | ✓ | ✓ | ✓ | Competitive Parity | |
| Inventory management | ✓ | ✓ | ✓ | ✓ | Sustainable advantage |
| Brand Equity | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Marketing | ✓ | ✓ | ✓ | ✓ | Sustainable advantage |
| Product quality | ✓ | ✓ | ✓ | ✓ | Sustainable advantage |
| Product range | ✓ | ✓ | ✓ | ✓ | Sustainable advantage |
| Talented HR | ✓ | ✓ | ✓ | Competitive parity |
References
- Coles, 2020. About us. [Online], Available at: https://www.colesgroup.com.au/about-us/?page=about-us, [Accessed on: 4th April, 2020].
- My Assignment Help, 2018. Internal Analysis of Coles Supermarkets [Online]. Available at: https://myassignmenthelp.com/free-samples/internal-analysis-of-coles-supermarkets, [Accessed on: 4th April, 2020].
- Sandeep, K. 2012. Analysis of the grocery industry Coles Supermarkets. [Online], Available at: https://www.academia.edu/4615254/Analysis_of_the_grocery_industry_Coles_Supermarkets, [Accessed on: 4th April, 2020].
- Supply chain analysis, 2020. [Online], Available at: https://supplychainanalysis.igd.com/retailers/coles, [Accessed on: 4th April, 2020].