Application of VRIO Model to Victoria's Secret: Leadership Analysis

This report provides a comprehensive analysis of the VRIO model and its practical application within the context of leadership, using Victoria's Secret as a case study. The introduction highlights the importance of strategic tools for understanding competitive advantages and the role of leadership in achieving business objectives. The report delves into research methodology, emphasizing the use of various techniques to gather data and assess market position. It explains the VRIO model (Valuable, Rare, Costly to Imitate, Organized) as an internal analysis tool for evaluating resources and capabilities. The report further explores leadership traits, styles, and contingencies, discussing challenges faced by leaders and strategies for success in emerging markets, including the use of technology and developing leadership capacity. The conclusion synthesizes the key findings, emphasizing the importance of the VRIO model for achieving and sustaining competitive advantage in the retail industry.

Research Methodology and
application of Vrio Model to case

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................3
1...................................................................................................................................................3
2...................................................................................................................................................4
3...................................................................................................................................................5
4...................................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In order to understand the different sources of competitive advantage the organisation has
to use many tools and techniques to analyse external and external factors. In organisation the
roles and responsibilities of leaders are important. However, they are facing some challenges in
order to attain the business objectives (Ambrosini, Bowman and Collier, 2010). The present
report is based on Victoria's secret company who is dealing in designer, manufacturer and selling
so many products related with women. Here, VRIO model model has been discussed in relation
to leadership. Further, leadership traits, styles and contingencies have been described.
TASK
1.
Research methodology is used when so many data has to be collected by the person. In
retail or manufacturer industry, it is essential to use different methods of research
methodology so that they can collect the huge data from different sources. The manager can
prepare questionnaire to take the reviews from the customers. With the help of questionnaire
the company can analyse that what is their position in market. In organisation there are
different leaders who are having unique skills and characteristics (Cardeal and Antonio,
2012). VRIO model for the organisation forms the largest strategic schemes. VRIO model
falls under the internal analyses which is used in evaluating all the resources and capabilities
that helps the company in order to achieve their business objectives. Different methods and
techniques can be used by the managers in order to collect many informations. The manager
can also take feedback from the customers and employees for analysing that they are
providing better services or not. It also ensures that the resources must be used in appropriate
way. There are many techniques which help to business entity in conduct the proper research
technique. For this they have to decide that what kind of research is there like qualitative or
quantitative. In autocratic leadership leaders hold all authority and responsibility. In it leaders
take their decision without consulting their subordinates. They rake decision communicate
them to subordinates and order for prompt implementation. Strategic leaders who is essential
head of organisation is involved in it. It is not centric to only top level management but at
every level of management where everyone wants to create high level performance.

VRIO framework is valuable model which helps the organisation to lead in competitive
market. The VRIO model of Victoria's are as follows.
Victoria secret VRIO Capability
Employment engagement
Valuable Rare Costly to imitate Organised to capture value
YES NO YES YES
Result: Sustained competitive advantage
2.
Competitive advantage are those condition which allow the organisation to sale more
products and services at lower price to beat their competitors (Dixon and Day, 2010).
Competitive advantage include cost structure, distribution network, customer support and many
more. VRIO model stands for valuable, Rare, Costly to Imitate and organised to capture value. In
business entity the leaders are facing so many challenges in order to encourage the employees.
Developing managerial effectiveness – Leaders have to increase their skills to work
more effective. They have to also set the time period that in which time they have to complete
the work.
Leading a team – For leader it is difficult to build a team. While building a strong team
the leader have to analyse the strength and weaknesses of employees.
Guiding change – If there is changes in the management then it became difficult for the
leader to guide employees in appropriate manner. Guiding change includes to deal with the
changing in employment behaviour, consequences related to resistance and many more.
VRIO model has been explained below which help the leaders to face the challenges in
appropriate manner.
Valuable – The leaders have to exploit opportunities and to identify the threats. The
leaders has to identify that what kind of resources will be required by the organisation to increase
the customer base. If resources are find out and valuable then it help the organisation to meet out
with the needs and expectation of consumers (Helms and Nixon, 2010). A leader has to find
possible valuable resources or capabilities with the help of company value chain. In value chain,

the manager introduce new products and services step-by-step and along with this they add some
sort of value in these goods and services. When this organisation is targeting new country
Brasilia, they have to use limited resources in order to retain some resources for a future.
Rare – The resources which has been acquired by the organisation are considered as rare.
If valuable resources are used in rare chance then it can grant competitive advantage for a
particular time period. The leaders have to use proper resources in appropriate manner in order to
face the challenges. The leaders can use identical resources to implement some strategies through
this they can achieve superior performance. The leaders have not to neglect those resources
which are not valuable. If they loose valuable resources and capabilities then it may became
difficult for the business entity to face the leadership challenges.
Costly to Imitate – Victoria secret organisation have to see that if resources are fully
copied then they can achieve competitive parity with the help of value and rareness. Imitation
can be occur in two ways such as by directing imitating of resources (duplicating) or by
providing the substitution of resources. Studies have shown that leadership development program
is effective when high performing employees are identified. Impact of Leadership development
programme on current business practice: Leadership development expands the capacity of
individual to perform in leadership role within organisation. LD is key to business success.
Organised to capture value – The resources which has been used by Victoria secret
does not confer any advantage and capture the value for them (Henkel, Bider and Perjons, 2014).
The higher authority has to have to make proper management system, rules and policies or any
organisational structure to fully utilise the potential resources for valuable, rare and costly to
imitate. Through this only the company can accomplish sustained competitive advantage.
With the help of VRIO model the business entity can also expand their business in new
country such in Brasilia which give gain the competitive advantage. Through this they can also
analyse that who are competitors of their business entity and using the valuable resources in
order to provide quality of services.
3.
In Victoria's secret, leaders need to be have strong operational skills to maintain their
status quo. The new technologies has been emerged so they have to use them in order to motivate
the employees. The following are some strategies in which leaders can become successful in
today's emerging market.

 They have to made a clear picture of the organisation that where they are going. In entire
organisation its not possible of leaders to manage all the organisation that what going to
happen. They have to make proper strategies in order to communicate with all the
employees.
 Connect vision and execution - It is that strategy, in which top and bottom level are
responsible for the execution of activities. This strategy disconnects the leaders from the
mission and vision of Victoria's secret (Hinterhuber, 2013). Vision require the action to
be clarified by the top authority and execution should reflect in effective manner.
 Develop leadership capacity – It is the most significant job of leader to develop the
skills of other employees also. The leaders should be responsible for to motivate other
employees so that they can develop the leaders for future needs. Therefore, it is not
important to achieve the organisation results but they have also encourage other leaders
also.
 Use technology to stay connected - In modern era, there is rapidly change in the
technology. So the leaders has to adopt and use new technology which help them to
provide quality of services to customers. With the help of new technologies the leaders
will stay connected strong and can talk face-to-face with customers. Through this they
can provide those products which are in the need of women. Mainly the products are sold
such as beauty, lingerie and many more.
 Drive profits through principles and values – The leaders have to properly analyse the
principles and values of organisation thorough which they can drive the profits.
With the help of VRIO model leadership capacity is effective. The advantage of develop
leadership capacity are.
 It increase the skills and knowledge of employees in order to give best possible of
outcome results.
 The organisation can get new ideas for how to deliver quality of services to customers.
 Through this the leader can create multiple paths for achieving the objectives in
appropriate manner (Killen and et. al., 2012). The ability of connect the ideas will also
create the value of organisation.
Disadvantage are as follows.
 The leaders can became jealous from the employees that he/she will take their place.

 It sometimes can waste the time of organisation while in providing the proper training
and development programme.
When there is any change in the leadership quality then the response of employee can be
bad or good. If the changes are made according to the employee need then it is good for the them
and support the leaders. The have to support and encourage the employees of Victoria's secret.
They have also give opportunities to them to show their skills and capabilities. Whereas if the
changes are made for the own purpose then it may also impact on the organisation objectives.
4.
The most suitable leadership strategy is the leaders are creating multiple paths for getting
the ideas and apply different tests (Lin and et. al., 2012). The different ideas are representing the
skill of strategic leaders that in which way they are going to achieve business objectives. While
entering into new market the leaders have to make proper coordination with others in order to
make sturdy relationship with employees. The following are some practices which has been
performed by leaders at work place.
Model the way – Leaders clarify the values and set the examples foe doing the work in
different ways. Through this it will help the employees to perform their task in appropriate
manner.
Inspired a shared vision – The leaders can shared the inspired vision. The leaders
establish their clear vision on focusing on the objectives of organisation so that they can build
strong relationship with employees (5 Practices of Exemplary Leaders, 2017).
Challenge the process – The leaders are searching for opportunities in which they can
challenge the process and take the risk. If do not take challenges then they cannot maximise the
profit for Victoria's secret.
Encourage the heart – Leaders are encouraging their hearts by celebrating the values
and victories. They also remember the spirit which are made by the entire organisation and
appreciate them.
There are different kinds of leadership styles which defines the nature of leaders in
organisation. Such as autocratic, democratic laissez, transformational and many more. In
autocratic leadership model the managers are taking decision without consulting with their team
members. This model is appropriate when the organisation have to take an quickly decision. If
there is any change in this model then it can waste the time of managers while consulting with

team members and lost the opportunity (Peteraf, Di Stefano and Verona, 2013). In democratic
leadership style the leaders are taking decision with the help of employees. They also encourage
the creativity of employees so that they will provide high productivity of result. If there is any
change in this model then it will demotivate the employees and will not give good result to
organisation. On other side, in laissez-faire, the leaders and team members are having freedom to
do work according to their choice. The leaders are support while allocating the proper resources
to employees and giving them advice whenever they needed. In this, the leaders and employees
are not managing their time and skills and knowledge are not effectively gaining. If there is any
change in this leadership model then the employees can increase their knowledge and skills.
The organisation can use Porter five forces model, porter value chain to determine
internal and external factors (Rothaermel, 2015). In order to gain competitive advantage these
factors should be analyse properly in order to retain in market for a long period of time. The
leaders have also to use new technologies and take decision according to the needs of employees.
They have to also take the advices from the expertise that actions can be taken to improve the
skills and can use proper model of VRIO (Sarker and et. al., 2012). With this model they also
came to know about that how much resources can be utilised by them in order to increase the
productivity of results.
In every business organisation, leadership style plays a very crucial role by which leader and
manager motivate and encourage employees to attainment of the objective. Leader is a person
who develop the relationship with employees and close with employees. In the firm only leader
is a person who can close touch with employees and personal interact with them. With help of
effective leadership style they can easily identity their issue and make effective measure to
resolve that issue related to working in the business. It is very important for the organisation to
adopt an effective leadership style so as they can motivate and retain employees for long time
period. It allows to have better business expansion in desired manner.
CONCLUSION
After summing up report it has been concluded that the people can use different methods
while collecting the data. The leaders have to make appropriate strategies and tools in facing the
challenges. Such as they can take the advices from the expertise in order to face the challenge. If
there is any change in the behaviour of leadership then it directly impact on the organisation as

well as employees. With the help of VRIO model the business entity can allocate the appropriate
resources to employees in order to gain the competitive advantage.
REFERENCES
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(VRIO) resources or valuable, rare, inimitable resources (VRI) capabilities: What leads
to competitive advantage?.
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