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Athleta Case VRIO Analysis


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Athleta Case Study Solution

A number of areas can be identified where FG has an one-upmanship over its competitors. These areas would certainly be analyzed utilizing the Athleta VIRO framework where the 'value', 'inimitability', 'rarity' as well as company' of FG would be reviewed in regards to its payment towards its one-upmanship. The structure has actually been presented in appendix 3.

It can be seen that FG is providing a value-added product, which is not simply a way of acquiring high margins for business, but is beneficial for the client too. Smoked seafood products are looked upon as value-added items therefore FG is absolutely supplying value to the market as well as to the entrepreneur in the type of high saving potential from fish items. Also, FG's capability to create original Eastern passionate smoked seafood products can be considered an inimitable skill.

The business has put barriers to entrance for brand-new participants by urging consumers to be demanding in regards to requesting their choices. Not just has this made the service rare, it has actually increased the cost of access for specific niche gamers considering that FG's diversity and flexibility can not be matched by brand-new entrants in the brief run. This highlights one more point of inimitability.

The fact that the business is not product-orientated but is a market-orientated company which is adaptable enough in its capability to get used to dynamic market circumstances recommends that its method of organizing services is absolutely its one-upmanship. The company is arranged so that it has less reliance on importers and also trading companies which adds to its affordable side as a company in a market where smoked fish products have to be imported from other countries.

Along with these factors, FG's long-term relationships with its client that has actually resulted in brand loyalty from their side as well as the former's consistent support of quality control to preserve this brandloyalty is an additional element providing it an one-upmanship.

According to the Athleta VIRO structure, if a company's sources are beneficial yet can be copied easily, it might have a short-term competitive benefit. However, a sustained competitive benefit would certainly result from sources which are valuable, rare and also expensive to copy while at the exact same time the company has the capacity to arrange these for an optimum benefit (Rothaermel, 2013). In FG's case, it can be seen how a sustained affordable advantage is possible with the company's flexibility, market-orientated approach, suffered long-termrelationships and also ingenious abilities of the business owner. These factors have currently been reviewed in the Athleta SWOT analysis as internal strengths.