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Accounting For Frequent Fliers Case VRIO Analysis


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Accounting For Frequent Fliers Case Study Analysis

Numerous locations can be determined where FG has a competitive edge over its competitors. These areas would be assessed utilizing the Accounting For Frequent Fliers VIRO framework where the 'value', 'inimitability', 'rarity' and also organization' of FG would certainly be examined in regards to its contribution towards its competitive edge. The framework has been shown in appendix 3.

It can be seen that FG is supplying a value-added product, which is not simply a way of obtaining high margins for business, but is important for the consumer also. Smoked fish and shellfish items are considered as value-added items and so FG is certainly offering worth to the marketplace and to the entrepreneur in the kind of high conserving potential from fish items. FG's ability to generate initial Oriental inspired smoked seafood products can be considered an unique ability.

Business has placed obstacles to entrance for brand-new participants by encouraging customers to be requiring in regards to requesting their preferences. Not just has this made the solution unusual, it has boosted the expense of entrance for specific niche players considering that FG's diversification as well as versatility can not be matched by brand-new entrants in the brief run. This highlights an additional point of inimitability.

The fact that business is not product-orientated however is a market-orientated organisation which is flexible enough in its capacity to adapt to vibrant market scenarios recommends that its way of organizing services is certainly its competitive edge. In addition to this, the business is organized to make sure that it has much less reliance on importers and also trading companies which adds to its one-upmanship as a company in a market where smoked fish products need to be imported from other nations.

Along with these factors, FG's long-term relationships with its client that has resulted in brand loyalty from their side and also the previous's constant reinforcement of quality control to keep this brandloyalty is an additional element providing it a competitive edge.

As per the Accounting For Frequent Fliers VIRO framework, if a firm's resources are important but can be imitated quickly, it might have a temporary competitive benefit. In FG's case, it can be seen how a continual competitive advantage is possible with the company's flexibility, market-orientated technique, endured long-termrelationships and also innovative skills of the business owner.