Question

Hi, can you answer this question in more detail?

Subject: Business Policy and Strategy

The G2000 Group was founded by Michael Tien in 1980 in Hong Kong. The label G2000, first introduced in 1985, was positioned as a specialty clothing chain distributing fashionable men’s and women’s career wear. Today, the G2000 Group is a multi-brand specialty retailer offering an assortment of men’s and women’s apparel and accessories, operating under different labels: G2000 MAN, G2000 WOMAN, G2000 studio, BLAACK and At Twenty.

(G)

As for the situation analysis of G2000 company, it involves the following four topics, shows your theoretical understanding, and adopts RBV-VRIN method to evaluate internal resources for the local market of Hong Kong.

( Words: 700 - Need to be original, Don't direct copy )

• Value: Resources that can bring value can be a source of competitive advantage. Keep in mind that not all resources are equally easy to obtain.

• Rareness: Resources that are available to all competitors rarely provide any significant competitive advantage.

• Imitability: An ideal resource cannot be obtained by competing businesses.

• Non-substitutable: An ideal resource cannot be substituted by any other resource.

Answer 1

The VRIO framework is used to find out if the resources held or used by a company provide it with a competitive advantage over its rivals. It addresses four main questions based on which the conclusion is reached. The V checks whether the resources provide the customer's value. The R tries to figure out if the resources held by the company are rare or not. The I stands for inimitability. It checks whether the resources are easy to be copied or not. The O stands for the organization which checks whether the company has the necessary organized systems, processes, etc required to finance the resources.

The G2000 Group can be analyzed based on the VRIO model to find if they have the necessary competitive advantage. The G2000 has been able to establish itself as a multi brand speciality retailer. It has operations in various countries. The VRIO model for G2000 is as mentioned below.

VALUE: The products offered by the company provides the customers with value. It should be felt by the customer. G2000 offers good quality products to its customers. It also provides a good fit product which leads to more customer satisfaction. In the case of most other companies, they need to go for more alterations which can lead to dissatisfaction. They also focus mainly on career wear than normal apparel. It also offers good product prices.

RARE: The company does offer certain rare features like best fit which prevents the customers from having to go for more alterations. This makes the product more liked by the customers. It offers a wide variety of career wears which are not offered by other brands. The pricing strategy of the company is also good.

INIMITABILITY: The company offers a variety of products under different name tags. The product quality is good. The company can focus more on not getting imitated. Offering the same quality products at a lower price is a bit tough.

ORGANIZATION: G2000 has established more than 700 outlets. SO it has the necessary resources in terms of finance and human resource. It is able to fund the processes and systems required to carry out the working of the business.