TJX Companies: Off-Price & Apparel Retailer Strategies & Vision - Essay Sample

Introduction

TJX Companies focuses on Off-price and Apparel Retailer strategies. Off-price is a strategy whereby the company tends to provide high-quality products at low prices. In contrast, the Apparel retailer means the company is designed to sell clothing, accessories, and footwear. Its strategy and vision are consistent with the retail sector with evidence of milestones it has achieved in the past. For instance, sales had grown over 80% with a strong earnings trend hence an overall increase in its per-share dividends (Nwalozie, 2019). TJX Company has key resources and capabilities that make it thrive in the retail sector. It is made up of a strong brand portfolio and intellectual property. Its products like accessories and home products, IT and communications property, physical retail outlets, its partnership, the supply chain system, and personnel are well structured. The company has e-commerce capabilities enabling it to concentrate on its brick and mortar chains.

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VRIN Strategy requires that the company resources are Valuable, Rare Imperfectly imitable, and No substitutable. It is for the case to TJXs Company and has brought a significant competitive advantage with its external competitors. The major strengths of TJX Company include being a world-class buying company, global supply chain and distribution network, flexible retail business models across the globe, and excellent leverage potential. In pursuit of the company goal for global growth, the strengths s offers the company a greater chance over its competitors as it offers high-quality products to its customers below the full-price retailer. TJX Company is well-positioned to grab additional market share, and its e-commerce is the key catalyst, further the capability to buy exceptional merchandise at a discount without carrying excess inventory, thus defending itself against threats. From exhibits 6 and 7, there is a positive financial performance regarding liquidity and profitability measures as the cash dividend declared are positive and an overall growth rate through investments.TJX Is made up of business segments, which include Marmaxx, Home goods, TJX Canada, and TJX Europe.

Marxmaxx appears to have the strongest potential since it's the largest off-price segment as it focuses on driving customer traffic and comparable sales increase. It also has a long-term target of 3000 stores, which reflected TJX determination and ability to further penetrate the existing US market. TJX has a good internet with e-commerce channels all over the world as compared to the brick and mortar, which was for clothing and home fashions only (Nwalozie, 2019). Opportunities exist to revise the retail approach. TJX Management should focus on certain investments, like installing more stores to reduce traffic, store remodeling to improve its performance in the long run.

References

Nwalozie, C. (2019). All About the TJX Companies. SSRN Electronic Journal. doi: 10.2139/ssrn.1872210