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Dividend Policy At Fuyao Glass Case VRIO Analysis

CASE STUDY


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Dividend Policy At Fuyao Glass Case Study Solution

A number of areas can be recognized where FG has an one-upmanship over its rivals. These areas would be analyzed using the Dividend Policy At Fuyao Glass VIRO framework where the 'value', 'inimitability', 'rarity' and also company' of FG would be examined in terms of its contribution in the direction of its competitive edge. The framework has actually been presented in appendix 3.

It can be seen that FG is using a value-added product, which is not simply a way of getting high margins for business, yet is useful for the customer also. Smoked fish and shellfish products are considered as value-added products therefore FG is certainly supplying worth to the marketplace and to the business owner in the type of high saving possibility from fish items. Similarly, FG's capacity to generate original Oriental passionate smoked seafood products can be considered a supreme ability.

The business has put obstacles to access for brand-new entrants by urging customers to be requiring in regards to requesting their choices. Not only has this made the service rare, it has increased the expense of entry for particular niche gamers given that FG's diversity as well as versatility can not be matched by new participants in the short run. This highlights another factor of inimitability.

The fact that the business is not product-orientated but is a market-orientated organisation which is flexible enough in its ability to get used to vibrant market situations suggests that its method of arranging solutions is certainly its competitive edge. The business is organized so that it has less reliance on importers and trading firms which includes to its affordable edge as an organization in a market where smoked fish items have to be imported from various other countries.

Along with these factors, FG's long term relationships with its client that has actually led to brand loyalty from their side as well as the former's consistent reinforcement of quality assurance to preserve this brandloyalty is an additional factor offering it a competitive edge.

As per the Dividend Policy At Fuyao Glass VIRO framework, if a firm's sources are beneficial however can be copied conveniently, it may have a short-term affordable advantage. A sustained affordable advantage would certainly result from resources which are valuable, unusual and also pricey to mimic while at the very same time the firm has the capability to organize these for an optimal benefit (Rothaermel, 2013). In FG's case, it can be seen exactly how a continual affordable advantage is feasible with the firm's adaptability, market-orientated approach, received long-termrelationships as well as ingenious skills of the business owner. These factors have currently been gone over in the Dividend Policy At Fuyao Glass SWOT analysis as internal toughness.