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Enron Collapse Case VRIO Analysis


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Enron Collapse Case Study Analysis

A number of areas can be determined where FG has a competitive edge over its rivals. These locations would be evaluated using the Enron Collapse VIRO framework where the 'value', 'inimitability', 'rarity' as well as company' of FG would be examined in regards to its contribution in the direction of its competitive edge. The structure has been displayed in appendix 3.

It can be seen that FG is offering a value-added product, which is not simply a method of getting high margins for the business, but is useful for the client also. Smoked seafood products are considered as value-added products and so FG is definitely using worth to the marketplace and also to the business owner in the form of high saving possibility from fish products. FG's capability to generate original Eastern passionate smoked fish and shellfish items can be taken into consideration an unmatched ability.

Business has placed barriers to access for brand-new entrants by encouraging consumers to be demanding in terms of requesting for their preferences. Not only has this made the solution rare, it has raised the price of entry for particular niche players since FG's diversity and also flexibility can not be matched by new participants in the short 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 versatile enough in its capability to get used to vibrant market circumstances suggests that its means of organizing services is absolutely its one-upmanship. Along with this, the business is arranged so that it has less reliance on importers as well as trading business which contributes to its one-upmanship as a company in a market where smoked fish products have to be imported from other nations.

In addition to these factors, FG's long term connections with its client that has actually caused brand loyalty from their side as well as the previous's consistent support of quality assurance to preserve this brandloyalty is an added factor offering it a competitive edge.

As per the Enron Collapse VIRO structure, if a firm's resources are valuable yet can be imitated easily, it might have a short-term affordable benefit. In FG's case, it can be seen just how a sustained competitive benefit is feasible through the company's versatility, market-orientated technique, received long-termrelationships and ingenious abilities of the entrepreneur.