WalMart: VRIO Analysis

Description
WalMart: VRIO Analysis

WAL-MART VRIO ANALYSIS
Wal-Mart’s Resources Valuable? Rare? Difficult to imitate? Exploited by Org?

Sam Walton’s leadership
Drive for achievement. Inspiration to employees. Good learner.

Y

Y

Y

Y

Early presence in small & medium size towns.
Strategic pre-emption. Freedom to experiment, set up systems, and learn. Unique historical condition (path dependent).

Y

Y

Y

Y

IT investments & systems.
Helped manage activities better Improved efficiencies.

Y

Y

Capability to leverage IT
Using POS data to make store arrangement and do forecasting. EDI – effective links with suppliers.

Y

Y

Y

Y

Large Size
Economies of scale. Lower input costs.

Y Y Y Y Y

Y Y Y

Early mover in discount retailing. Relationships with Suppliers
Clout & better negotiating power. Integrity and reputation.

Distribution System
More in number than competitors. Helped avoid inventory costs. Cross-docking ability.

Y

Y

Y

Y

Empowerment of dept managers Structure (lean management) A tight focus (commitment) to low prices
Common goal - unites managers and employees.

Y Y Y

Y Y Y Y

Y Y Y

Culture
Strongly embedded values – thriftiness, hard-work, innovation, continuous improvement. Idiosyncrasy.

Y

Y

Y

Y

Knowledge Management
Lessons learned in one store – is quickly

Y

Y

Y

Y

spread to other stores. Observing and copying best practices of competitors – openness to other ideas.



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