Research Methodology of Vrio Model


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.


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.

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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 introduces 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.

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 increases 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 become 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.

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.

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 have 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.



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 impacts 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.


  • Ambrosini, V., Bowman, C. and Collier, N., 2010. Using teaching case studies for management research. Strategic Organization. 8(3). pp.206-229.
  • Cardeal, N. and Antonio, N. S., 2012. Valuable, rare, inimitable resources and organization (VRIO) resources or valuable, rare, inimitable resources (VRI) capabilities: What leads to competitive advantage?
  • Dixon, S. and Day, M., 2010. The rise and fall of Yukos: A case study of success and failure in an unstable institutional environment. Journal of Change Management. 10(3). pp.275-292.
  • Helms, M. M. and Nixon, J., 2010. Exploring SWOT analysis–where are we now? A review of academic research from the last decade. Journal of strategy and management. 3(3). pp.215-251.
  • Henkel, M., Bider, I. and Perjons, E., 2014, June. Capability-based business model transformation. In International Conference on Advanced Information Systems Engineering (pp. 88-99). Springer International Publishing.
  • 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.

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