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:

Coles supermarket is one of the largest Supermarket in Australia. Coles has wide range of
customer’s base. Coles total profit is 4.3%. Its liquor and sales growth is 5.1% and Coles online
sales growth is 24.1% (Coles.com.au, 2018). These statistics shows that Coles has been trying to
maintain a steady business growth. 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 Organisationable Competitive Performance

Consequences implications
Employees Yes Yes No Yes Competitive High returns
advantage
Products Yes Yes No Yes Competitive High returns
advantage
R&D Yes Yes Yes Yes Competitive High returns
advantage
Buyers Yes Yes No Yes Competitive High returns
power advantage

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. 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. 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. 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.