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Air Canada Risk Management Case VRIO Analysis


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Air Canada Risk Management Case Study Solution

A number of locations can be identified where FG has an one-upmanship over its rivals. These areas would be examined making use of the Air Canada Risk Management VIRO framework where the 'worth', 'inimitability', 'rarity' and also company' of FG would be reviewed in terms of its contribution towards its competitive edge. The structure has been presented in appendix 3.

It can be seen that FG is using a value-added item, which is not just a method of getting high margins for business, yet is useful for the consumer also. Smoked seafood products are looked upon as value-added items and so FG is absolutely supplying value to the market as well as to the entrepreneur in the form of high saving potential from fish items. FG's ability to create original Asian passionate smoked fish and shellfish products can be thought about an unmatched ability.

Business has put barriers to entry for new entrants by urging customers to be demanding in terms of requesting their choices. Not only has this made the service unusual, it has increased the cost of entrance for niche players since FG's diversification and versatility can not be matched by new entrants in the brief run. This highlights another point of inimitability.

The truth that the business is not product-orientated however is a market-orientated service which is adaptable sufficient in its ability to adapt to dynamic market situations recommends that its means of organizing solutions is definitely its one-upmanship. In addition to this, business is organized to ensure that it has less dependence on importers and also trading business which includes in its one-upmanship as a company in a market where smoked fish items need to be imported from various other countries.

In addition to these factors, FG's long term partnerships with its consumer that has caused brand commitment from their side and also the previous's constant reinforcement of quality control to maintain this brandloyalty is an additional variable giving it an one-upmanship.

According to the Air Canada Risk Management VIRO framework, if a company's sources are beneficial but can be mimicked conveniently, it might have a temporary affordable benefit. Nonetheless, a continual affordable benefit would arise from resources which are important, unusual as well as costly to copy while at the same time the company has the capability to organize these for an optimum advantage (Rothaermel, 2013). In FG's case, it can be seen exactly how a sustained competitive advantage is possible with the firm's versatility, market-orientated strategy, suffered long-termrelationships and also ingenious abilities of the entrepreneur. These factors have already been gone over in the Air Canada Risk Management SWOT analysis as inner toughness.