BSAD420

VRIO assignment

Farah Emad Elaskary

211001633
VRIO:

Resource Valuable Rare Inimitable Organized Competitive

Advantage
Strong
brand image YES NO NO YES Competitive
Parity

Furniture
quality YES YES NO YES Realized
temporary
Competitive
advantage

Customer
service YES NO NO YES Competitive
Parity

Store
environmen YES YES NO YES Realized
t temporary
Competitive
advantage

Financial
resources YES NO NO YES Competitive
and scale parity
Strong brand image:
Valuable: IKEA's robust brand reputation attracts and retains customers while allowing for
premium pricing.

Rare: Not rare in the market

Inimitable: Replicating IKEA's established brand image would prove challenging due to its
unique history, consistent messaging, and distinct associations and there ‘no company can
compete.

Organized: IKEA's marketing strategies are well-structured, ensuring cohesive branding and
consistent communication across various platforms.
 They have a competitive parity.

Furniture quality:
Valuable: Offering quality furniture at reasonable prices satisfies customer demands and builds
brand trust.

Rare: Maintaining high-quality standards at IKEA requires efficient manufacturing and

stringent quality control measures, which are relatively uncommon in the industry

Inimitable: Competitors may struggle to match IKEA's quality and cost-efficiency in

manufacturing.

Organized: IKEA's quality control processes are organized through systematic testing and
continuous improvement initiatives.
 They have a temporary competitive advantage achieved.

Customer service:
Valuable: Excellent customer service enhances satisfaction and loyalty.
Rare: It's unusual to find a company that lacks customer service.
Inimitable: It's hard for competitors to replicate IKEA's customer service.
Organized: IKEA's customer service efforts are structured through training, policies, and
effective communication channels.

 They have competitive parity.

Store environment:
Valuable: Creating an engaging shopping environment boosts customer experience and
loyalty.

Rare: IKEA's immersive store setups are not widely seen in the furniture sector.
Inimitable: Emulating IKEA's unique store atmosphere would require substantial investment
and innovation.

Organized: IKEA's store layouts are carefully planned, incorporating innovative designs and
amenities to enhance customer satisfaction.
 They have a temporary competitive advantage achieved.

Financial resources and scale:

Value: IKEA's financial assets and expansive scale empower the company to invest in
enhancing product offerings, expanding its store network, and amplifying marketing endeavors.

Rarity: Despite the significant financial assets at IKEA's disposal, the mere possession of
financial resources is not particularly uncommon within the retail sector.
Inimitability: Rivals also possess access to financial resources, although IKEA's extensive
operations may confer on it with a comparative edge.

Organization: IKEA adeptly administers its financial assets, strategically distributing them to
bolster its progression and operational goals.
 They have a competitive parity.

References
VRIO Analysis of IKEA (case48.com)

IKEA: Resource-based strategy, VRIO analysis, and expansion strategy (desklib.com)

https://www.ikea.com/