Analysis of TJX Companies: Strategic Vision, Resources, and Segments

This case study analyzes TJX Companies, focusing on their strategic vision, corporate strategy, and key resources. It examines TJX's flexible business model, global market presence, and best-cost pricing strategy. The analysis compares the company's business segments, including Marmaxx, HomeGoods, TJX Canada, and TJX International, highlighting their contributions and growth potential. The study provides recommendations to TJX management, emphasizing the need for internet-based retail, improved market penetration strategies, and resource allocation for market development. It also stresses the importance of capital flexibility and focusing on stable markets for sustained growth and market longevity. The case study uses the VRN analysis tool to foster market flexibility, long-term sustainability, and a comprehensive global presence scope.

Running head: TJX COMPANIES CASE STUDY 1
TJX Companies Case Study
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TJX COMPANIES CASE STUDY 2
1. TJX's Strategic Vision and Corporate Strategy
TJX Companies have a strategic vision that aims at availing products at a lower retail
price in the market. The corporate strategy also focuses on delivering fashionable goods at a
relevant price in the market. The strategic vision is supported by the company's flexible
business model, which allows the retailer to change goods with a high turnover rate on the
inventory. The above enables the TJX Companies to rely upon existing market dimensions.
The strategic vision allows the company to quickly and timely change their products to adapt
to the ever-changing fashion industry, thus maintaining its consumption scope. The company
has had successful sales in international markets. Through the corporate strategy, the
company can successfully undertake sales in Canada, Europe and Australia.
TJX company strategic vision and corporate strategy have made the organisation maintain
its successful growth over four years. The strategy's crucial aspect is working on unique and
stiflingly different corporate systems that are typical and not deployed in the retail sector. The
company's management maintains its price index, and for a while, the company boasts of
price flexibility in regional and international markets, as stated by (Turnipseed 2018). The
company also operates on a best-cost pricing model in its corporate strategy. TJX Company
gives clients high-end features on all products at an affordable price compared to other full-
fledged retailers in the market. The significantly lower price margins attract more consumers
leading to fast stock completion. The business model perception created by TJX Company
entices consumers to continuously shop at their retail points compared to other outlets with
the same products but relatively high prices.
2. TJX's Key Resources and Capabilities
TJX Companies essential resources and capabilities are reliant on their global market
presence and flexible business models. The company's global presence enables them to

TJX COMPANIES CASE STUDY 3
leverage the market dimension despite prevailing market conditions. According to
Turnipseed (2018), the company creates a long-lasting buying power that allows them to
control the supply chain and distribution services in the market scope. The above will enable
them to continuously improve vendor relationships and widen their efficiency to maintain
their cost sustainability model.
The company's board still focuses on expansion, specifically in the HomeGoods
sector, which they term an underpenetrated venture in the United States. The above indicates
that the VRN analysis tool will foster market flexibility, long-term sustainability, and a
comprehensive global presence scope. The company's global market expansion model is
expensive, indicating that imitating the scope might derail other organisational incentives.
The above uniqueness makes the company growth goals quite imitable. The growth shows
the company has capabilities to expound their growth modules and focus on external markets
in the United States and abroad. The company has opened its 4000th stall, indicating that it
has the ability to concentrate on success abroad and in the United States. The company has
the capacity to open over 200 and maintain the existing stores, specifically in the
HomeGoods ventures.
The company is strategically positioned to tackle competitors. TJX Company has the best
cost-strategy that allows cross-sectional market penetration. The above considers that there
are substitute consumers who prefer high-priced items to low-cost items, leading to consumer
preference. The cost strategy enables the company to be centrally positioned for any attack
from low-cost consumer dropout or high-cost consumers. High-end competitors might slash
prices while keeping the same features and benefits to attract the intended consumer scope.
The above might lead to a mixed-up interruption on the set strategy and force them in cost
cutting war with TJX Company, which is well established.

TJX COMPANIES CASE STUDY 4
3. Compare TJX's Business Segments
TJX Company operates in four distinct market segments. The initial segment is the
Marmaxx. The second is the HomeGoods; the third is TJX Canada; and lastly, TJX
international. The Marmaxx segmented venture contributes approximately three-quarters of
the company's sales and owns over half of the brick and mortar stores owned by TJX. Out of
the four segments, the HomeGoods venture has the most significant potential for short-term
sustainability than the four segments. The HomeGoods venture is vastly underpenetrated,
indicating little competition and exit threats to establish financial stability and drive sales.
Once the HomeGoods venture is coupled with the TJX name, success is estimated to be
attained since it will be easier to gain market share (Turnipseed, 2018).
In terms of long-term sustainability, TJX International has the capacity to attain massive
sales and expansion volume. Western, Eastern, and Europe markets have huge population
categorised in smaller markets allowing easy market penetration. The above might take more
time to facilitate creating more concentration. The TJX international has a massive sales
volume in Europe and the Western market. TJX Company has a fast mover advantage due to
its brand name since, at one point, it was the only off-price retailer in Europe. The overall
corporate performance has growth potential; the above indicates irrespective of market
fluctuations. The Canadian market will spur irrespective of large detriments. The Canadian
market has a low estimated store growth due to its smaller population compared to some of
the states in the U.S. according to Turnipseed (2018), the above segmentation is the current
lowest sales in terms of percentage sales except for the Australian market. The market
segments should not be considered independent and not part of the international segmentation
in the market.
4. Recommendations to the TJX Management

TJX COMPANIES CASE STUDY 5
The TJX Companies management needs to focus on paving the way for the following
years' new brick and mortar store. The potential for market growth is visible since there are
other significant markets and unpenetrated markets like the TJX International venture and the
HomeGoods Segment. Technological improvements and globalisation are the new normal for
most international brands. The above indicates that the management and the TJX Company
board should focus on pursuing internet-based retail stores. Internet-based retail stores should
reduce market competition as consumers are slowly shifting to technological centred market
segments (Moatt et al., 2015). Marmaxx Segment would have earned more sales if it
incorporated internet-centred retailing from the year 2016 to 2018. A small web-based
technique would spearhead the Marmaxx Segment in the long-run to introduce more
consumers, specifically in Canadian and U.S. markets for the TJX group.
TJX Company management needs to focus on disentangling the performance effects and
control the bargaining power in horizontal market growth strategies mechanisms. The above
is attained through the creation of a two-way market penetration strategy. The management
should allocate sustainability resources for the HomeGoods market segment to ensure
prowess and market development. The other approach is allocating more resources for the
four segments to effectively penetrate the Canadian market and increase potential
consumption scope in the Canadian market. The above will reinstate the profit maximisation
model and improve market longevity for the retailer. JJX management should also focus on
slowing the expansion strategy in slowly responding markets. The above will ensure TJX
Companies focus on capital flexibility to attract more consumers in stable markets. The above
is because International segments have to tendencies of taking more time to grow and win the
consumers due to different consumer preference.

TJX COMPANIES CASE STUDY 6
Reference
Moatti, V., Ren, C. R., Anand, J., & Dussauge, P. (2015). Disentangling the performance
effects of efficiency and bargaining power in horizontal growth strategies: An
empirical investigation in the global retail industry. Strategic Management
Journal, 36(5), 745-757. https://citeseerx.ist.psu.edu/viewdoc/download?
doi=10.1.1.712.2104&rep=rep1&type=pdf
Turnipseed, L, D. (2018). TJX Companies: Its Strategy in Off-Price Home Accessories and
Apparel Retailing.