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Enron Collapse Case VRIO Analysis


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Enron Collapse Case Study Analysis

Several areas can be determined where FG has a competitive edge over its rivals. These areas would certainly be analyzed using the Enron Collapse VIRO structure where the 'worth', 'inimitability', 'rarity' as well as company' of FG would be evaluated in regards to its payment in the direction of its competitive edge. The framework has actually been displayed 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 the business, however is important for the customer also. Smoked seafood products are considered as value-added things therefore FG is absolutely using value to the marketplace and also to the entrepreneur in the type of high conserving possibility from fish products. Likewise, FG's ability to produce initial Oriental inspired smoked seafood products can be considered a supreme skill.

The business has actually put barriers to entrance for brand-new participants by urging customers to be requiring in terms of asking for their choices. Not just has this made the service rare, it has increased the price of entry for niche gamers because FG's diversification as well as flexibility can not be matched by new entrants in the short run. This highlights another point of inimitability.

The reality that the business is not product-orientated yet is a market-orientated organisation which is flexible sufficient in its ability to get used to vibrant market situations suggests that its means of organizing services is certainly its competitive edge. The organisation is organized so that it has less reliance on importers and also trading companies which adds to its affordable 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 partnerships with its client that has caused brand commitment from their side as well as the previous's continuous support of quality control to maintain this brandloyalty is an added element providing it a competitive edge.

As per the Enron Collapse VIRO structure, if a company's sources are important yet can be copied quickly, it may have a short-lived competitive advantage. In FG's case, it can be seen exactly how a sustained competitive advantage is possible through the company's versatility, market-orientated approach, received long-termrelationships and also ingenious skills of the business owner.