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Craig Manufacturing Case VRIO Analysis


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Craig Manufacturing Case Study Solution

Several areas can be determined where FG has an one-upmanship over its rivals. These areas would be examined using the Craig Manufacturing VIRO structure where the 'value', 'inimitability', 'rarity' and organization' of FG would be examined in regards to its payment towards its competitive edge. 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 method of obtaining high margins for the business, yet is important for the customer too. Smoked seafood products are looked upon as value-added products and so FG is certainly providing worth to the marketplace and to the entrepreneur in the kind of high conserving capacity from fish items. FG's capacity to produce original Asian inspired smoked fish and shellfish items can be taken into consideration an inimitable skill.

Business has actually placed obstacles to entrance for brand-new entrants by encouraging clients to be demanding in terms of requesting for their choices. Not only has this made the service uncommon, it has boosted the cost of entrance for niche gamers because FG's diversity and also adaptability can not be matched by new participants in the brief run. This highlights one more factor of inimitability.

The reality that the business is not product-orientated however is a market-orientated company which is flexible sufficient in its capacity to get used to dynamic market scenarios suggests that its way of arranging services is certainly its one-upmanship. The organisation is organized so that it has much less reliance on importers and also trading firms which adds to its competitive edge as a company in a market where smoked fish products have actually to be imported from other countries.

Along with these factors, FG's long term relationships with its customer that has resulted in brand name loyalty from their side as well as the former's constant reinforcement of quality assurance to preserve this brandloyalty is an added element providing it a competitive edge.

According to the Craig Manufacturing VIRO framework, if a company's sources are valuable however can be copied conveniently, it might have a short-lived affordable advantage. However, a continual affordable benefit would arise from sources which are useful, uncommon and expensive to imitate while at the same time the company has the capacity to organize these for an ideal advantage (Rothaermel, 2013). In FG's case, it can be seen exactly how a sustained affordable advantage is feasible through the company's adaptability, market-orientated method, endured long-termrelationships and also ingenious abilities of the business owner. These factors have actually already been gone over in the Craig Manufacturing SWOT analysis as interior toughness.