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Colt Industries Case VRIO Analysis


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Colt Industries Case Study Analysis

A number of locations can be determined where FG has an one-upmanship over its rivals. These locations would certainly be examined utilizing the Colt Industries VIRO framework where the 'value', 'inimitability', 'rarity' and organization' of FG would be examined in regards to its payment towards its one-upmanship. The structure has been presented 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 beneficial for the consumer also. Smoked seafood products are looked upon as value-added things and so FG is absolutely supplying worth to the market and also to the business owner in the form of high conserving potential from fish products. FG's ability to create initial Asian passionate smoked fish and shellfish products can be considered an unmatched skill.

Business has placed obstacles to entry for new participants by motivating clients to be demanding in regards to requesting their choices. Not just has this made the solution unusual, it has boosted the expense of access for niche players since FG's diversification and also versatility can not be matched by brand-new participants in the brief run. This highlights one more point of inimitability.

The fact that business is not product-orientated however is a market-orientated service which is versatile enough in its ability to adjust to dynamic market scenarios recommends that its method of arranging solutions is absolutely its competitive edge. The company is arranged so that it has much less dependence on importers and trading firms which includes to its affordable side as an organization in a market where smoked fish items have actually to be imported from other countries.

In addition to these factors, FG's long term partnerships with its client that has led to brand commitment from their side as well as the previous's constant reinforcement of quality control to keep this brandloyalty is an extra aspect giving it an one-upmanship.

Based on the Colt Industries VIRO framework, if a company's resources are valuable however can be copied quickly, it might have a momentary competitive advantage. A continual competitive advantage would result from sources which are useful, rare and costly to imitate while at the exact same time the firm has the capability to arrange these for an ideal advantage (Rothaermel, 2013). In FG's case, it can be seen how a continual competitive advantage is possible via the company's flexibility, market-orientated approach, endured long-termrelationships and innovative skills of the entrepreneur. These factors have actually already been reviewed in the Colt Industries SWOT analysis as inner staminas.