Answer

Analysis Internal Assessment

Resources and Capabilities

This section outlines three items for weaknesses, strengths, and distinctive competencies or sustainable distinctive competencies. The three weaknesses are; high distribution costs, late adoption of digital initiatives, and lack of economic moat. Its strengths include; procuring of quality inputs, ability to service orders on short notice, and a reliable supply chain. The distinctive competencies held by BBBY include; designing products that meet multiple purposes, reliable last mile delivery, and product quality (Messner, Ducker & Wilson, 2019). The sustainable distinctive competencies are; fast processing of orders, competent maintenance of technologies and experienced human resource.

The three weaknesses are neither valuable, inimitable, nor rare. The lack of economic moat arises from high operational costs especially in distribution. The late adoption of digital innovations further advantages rivals thus giving them a competitive edge over BBBY. Considering BBBY’s strengths, the ability to service unexpected orders urgently contribute to originality, valuable and rare elements. However, they are not inimitable. Reliability of the supply chain is original and valuable. Yet it fails to stand out as rare and inimitable. Procuring quality inputs constitutes originality, and valuable resources. These strengths create competitive parity for BBBY. The three distinctive competencies are valuable, rare, and original yet they can be imitated by rivals. These elements create temporary competitive advantage for BBBY (Messner et al. 2019). On the other hand, the three sustainable distractive competences tick all the elements thus stand out as valuable, rare, inimitable, and original. They create sustainable competitive advantages for BBBY.

Considering the current state of BBBY, the firm lacks the structure and complementary resources to capitalize on the opportunities at hand. Its lack of resources and capabilities contribute towards weaknesses thus lack of sustainable distinctive competencies required to sustain the firm in the near future.

VRIO Analysis

Table 1. VRIO ANALYSIS

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The exhibit shown in table 1 above evaluates value chain activities at Bed Bath & beyond Inc. Evidently, the company derives its sustainable competitive advantages from its fast and reliable process of sales orders and retaining an experienced and competent team of employees especially in the leadership positions. A critical look at the table shows that the company needs to urgently revamp its distribution processes to minimize costs which is a weakness and a competitive disadvantage. The company should further consider improving areas such as procurement, inventory management, design and engineering, manufacturing, distribution, and technological support to optimize its competitiveness.