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Ambuja Cements And Holcim India Merger Case VRIO Analysis

CASE ANALYSIS


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Ambuja Cements And Holcim India Merger Case Study Help

Several areas can be identified where FG has an one-upmanship over its competitors. These locations would be analyzed using the Ambuja Cements And Holcim India Merger VIRO framework where the 'worth', 'inimitability', 'rarity' as well as company' of FG would certainly be assessed in terms of its contribution in the direction of its competitive edge. The structure has actually been shown in appendix 3.

It can be seen that FG is supplying a value-added product, which is not simply a way of acquiring high margins for the business, however is useful for the client as well. Smoked seafood items are looked upon as value-added things therefore FG is absolutely providing worth to the market as well as to the business owner in the form of high saving possibility from fish items. FG's capability to create initial Asian passionate smoked seafood items can be thought about an inimitable ability.

The business has put obstacles to access for new entrants by motivating clients to be requiring in regards to asking for their preferences. Not only has this made the service rare, it has increased the cost of access for particular niche players because FG's diversification as well as adaptability can not be matched by brand-new entrants in the short run. This highlights another point of inimitability.

The reality that business is not product-orientated yet is a market-orientated business which is versatile sufficient in its capacity to adjust to vibrant market circumstances recommends that its way of arranging services is certainly its competitive edge. The business is arranged so that it has much less reliance on importers and also trading business which includes to its affordable side as an organization in a market where smoked fish items have to be imported from other countries.

In addition to these factors, FG's long term relationships with its customer that has actually resulted in brand name loyalty from their side as well as the former's consistent reinforcement of quality assurance to keep this brandloyalty is an added variable giving it a competitive edge.

Based on the Ambuja Cements And Holcim India Merger VIRO framework, if a firm's resources are useful but can be imitated easily, it may have a temporary affordable benefit. A sustained affordable advantage would result from sources which are important, unusual and costly to imitate while at the same time the firm has the capability to organize these for an optimal benefit (Rothaermel, 2013). In FG's case, it can be seen just how a continual affordable benefit is feasible through the company's versatility, market-orientated approach, endured long-termrelationships and ingenious skills of the entrepreneur. These factors have actually already been reviewed in the Ambuja Cements And Holcim India Merger SWOT analysis as inner staminas.