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Enron Collapse Case VRIO Analysis

CASE SOLUTION


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Enron Collapse Case Study Solution

Numerous areas can be recognized where FG has an one-upmanship over its competitors. These locations would be analyzed making use of the Enron Collapse VIRO framework where the 'worth', 'inimitability', 'rarity' and organization' of FG would be reviewed in regards to its payment towards its competitive edge. The framework has been shown in appendix 3.

It can be seen that FG is providing a value-added product, which is not just a method of obtaining high margins for the business, but is important for the customer too. Smoked fish and shellfish items are looked upon as value-added things and so FG is certainly supplying value to the market and to the business owner in the type of high saving potential from fish products. Likewise, FG's ability to create initial Eastern inspired smoked fish and shellfish products can be thought about an unmatched ability.

Business has actually put barriers to entry for brand-new entrants by urging customers to be demanding in terms of requesting for their preferences. Not just has this made the solution rare, it has increased the expense of entrance for niche players given that FG's diversification and also flexibility can not be matched by brand-new participants in the brief run. This highlights one more factor of inimitability.

The fact that business is not product-orientated but is a market-orientated organisation which is flexible sufficient in its capacity to adapt to vibrant market circumstances suggests that its method of organizing services is absolutely its one-upmanship. The business is arranged so that it has much less reliance on importers and trading firms which adds to its competitive edge as a company in a market where smoked fish products have to be imported from other countries.

In addition to these factors, FG's long term partnerships with its customer that has brought about brand name commitment from their side as well as the previous's consistent reinforcement of quality assurance to keep this brandloyalty is an extra element giving it an one-upmanship.

As per the Enron Collapse VIRO framework, if a firm's resources are valuable however can be copied quickly, it might have a momentary affordable benefit. In FG's case, it can be seen how a sustained competitive benefit is possible via the firm's flexibility, market-orientated strategy, suffered long-termrelationships and also innovative skills of the business owner.