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American International Group Inc Case VRIO Analysis


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American International Group Inc Case Study Solution

Numerous locations can be recognized where FG has an one-upmanship over its rivals. These areas would be examined utilizing the American International Group Inc VIRO framework where the 'value', 'inimitability', 'rarity' and also company' of FG would certainly be assessed in terms of its contribution towards its competitive edge. The framework has been presented in appendix 3.

It can be seen that FG is offering a value-added product, which is not simply a method of getting high margins for the business, however is beneficial for the customer too. Smoked seafood items are considered as value-added things therefore FG is definitely offering worth to the marketplace and to the business owner in the kind of high conserving capacity from fish products. Similarly, FG's capability to generate original Oriental inspired smoked fish and shellfish products can be considered an unique ability.

The business has placed obstacles to entrance for brand-new participants by motivating consumers to be requiring in terms of requesting their choices. Not only has this made the solution unusual, it has increased the expense of entrance for specific niche players given that FG's diversity and adaptability can not be matched by brand-new participants in the brief run. This highlights an additional factor of inimitability.

The truth that business is not product-orientated but is a market-orientated service which is versatile enough in its ability to adapt to vibrant market scenarios suggests that its method of organizing services is absolutely its one-upmanship. The company is arranged so that it has less reliance on importers and trading firms which adds to its competitive edge as a company in a market where smoked fish items have to be imported from various other countries.

In addition to these factors, FG's long term partnerships with its consumer that has actually caused brand name loyalty from their side and the previous's constant support of quality control to preserve this brandloyalty is an extra aspect offering it a competitive edge.

According to the American International Group Inc VIRO framework, if a company's sources are important yet can be copied easily, it might have a temporary affordable benefit. However, a sustained affordable benefit would certainly arise from sources which are valuable, rare and expensive to copy while at the exact same time the company has the ability to arrange these for an ideal advantage (Rothaermel, 2013). In FG's case, it can be seen how a sustained competitive advantage is feasible with the firm's flexibility, market-orientated technique, sustained long-termrelationships and also innovative abilities of the business owner. These factors have currently been reviewed in the American International Group Inc SWOT analysis as inner staminas.