Internal Environmental Analysis of Coles Supermarket through VRIO Analysis

This article discusses the internal environmental analysis of Coles Supermarket through VRIO analysis. It explores the internal factors of Coles Supermarket and its competitive advantages. The article highlights the valuable resources, customers, products, and R&D of Coles Supermarket. It also discusses the employee performance management process and the development of employee skills and knowledge. The article concludes that Coles Supermarket has the capabilities and resources to be a leading organisation in Australia.

Strategic Management
Journal Post 3
Student Name
Institute and Affiliation
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Table of Contents
Introduction:....................................................................................................................................3
Internal environmental Analysis:.....................................................................................................3
Conclusion:......................................................................................................................................4
References:......................................................................................................................................5
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Introduction:
Internal analysis helps to determine organisation’s internal strengths and weaknesses. Internal
analysis deals with organisational resources, customers and products quality. This helps in
exploring organisational competencies, competitive viability and cost composition. In this
research, the researcher will try to reveal the internal factors of Coles supermarket through the
VRIO analysis.
Internal environmental Analysis:
VRIO model will help to demonstrate the internal major resources of Coles supermarket (Miller,
2010). The researcher, through this analysis will also try to present the internal stability of the
organisation. Coles supermarket has been focusing on establish the long term partnership to
improve the availability and quality of the products. There are over 8000 supermarkets along
with well trained store team. Coles has more than 107,000 employees. It has more than 3100
products which customers use in everyday life. In past four years Coles brand has achieved more
than 500 awards (Coles.com.au, 2018). Coles has newly launched flybus travel, Won for its loyal
customers. New 31 Coles sites has been opened by Coles supermarket.
Valuable Rare Imitable Organisationabl
e
Competitive
Consequences
Performance
implications
Employees Yes Yes No Yes Competitive
advantage
High returns
Products Yes Yes No Yes Competitive
advantage
High returns
R&D Yes Yes Yes Yes Competitive
advantage
High returns
Customers Yes Yes No Yes Competitive
advantage
High returns
Table 1: VRIO model
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(Source: Hinterhuber, 2013)
Analysis: Through VIRO analysis it has been identified that Coles supermarket has valuable
resources, customers, products and R&D.
Products: Coles has been able to achieve the satisfaction of the customers through their valuable
products and services. They are also trying to reach the customers through their different types of
stores and services.
Employees: Coles supermarket has been developing their employee performance management
process through employee engagement process and this has been helping in developing their
employee performance in the work place.
R&D: In this research, the researcher has also been able to gain competitive advantages through
the Research and Development. Coles has been investing in their research and development to
increase their sales and marketing process. Also they are in focused on the development of their
employee skills and knowledge.
Customers: They have been able to provide the service according to the choice of the customers.
In this research, the researcher has been able to demonstrate the internal strengths and
capabilities of Coles supermarket. Unique store design and organisation provides several
opportunities through reducing price. Through their innovative approaches Coles has been
achieved several awards and brand respects through the support of the customers.
Conclusion:
In this analysis, the researcher has been able to reveal the several competitive advantages of
Coles supermarket. It has capabilities and resources which can help them to be a leading
organisation in Australia. There are several brand names of Coles like Coles Finest, Coles
organic and Coles Green choice.
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References:
Coles.com.au. 2018. Coles Supermarkets. [online] Available at: https://www.coles.com.au/
[Accessed 4 Dec. 2018].
Hinterhuber, A., 2013. Can competitive advantage be predicted? Towards a predictive definition
of competitive advantage in the resource-based view of the firm. Management Decision, 51(4),
pp.795-812.
Miller, W. D. 2010. Value maps: valuation tools that unlock business wealth. John Wiley &
Sons.
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