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Enron Gas Services Case VRIO Analysis

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Enron Gas Services Case Study Analysis

Several locations can be determined where FG has an one-upmanship over its rivals. These areas would certainly be analyzed using the Enron Gas Services VIRO structure where the 'value', 'inimitability', 'rarity' as well as organization' of FG would certainly be assessed in terms of its contribution in the direction of its competitive edge. The framework has actually been shown in appendix 3.

It can be seen that FG is using a value-added item, which is not simply a method of getting high margins for business, but is useful for the consumer also. Smoked seafood products are looked upon as value-added items therefore FG is certainly supplying value to the market as well as to the entrepreneur in the form of high saving capacity from fish items. Furthermore, FG's ability to create original Eastern passionate smoked seafood products can be considered an inimitable ability.

Business has actually placed barriers to entry for new participants by encouraging customers to be requiring in regards to requesting for their choices. Not just has this made the service uncommon, it has actually boosted the price of entrance for specific niche gamers since FG's diversification and adaptability can not be matched by brand-new entrants in the brief run. This highlights one more point of inimitability.

The truth that the business is not product-orientated however is a market-orientated organisation which is flexible enough in its capacity to adapt to dynamic market circumstances recommends that its method of organizing services is absolutely its one-upmanship. The organisation is organized so that it has less reliance on importers and also trading firms which adds to its affordable side as an organization in a market where smoked fish items have actually to be imported from other countries.

In addition to these factors, FG's long-term connections with its customer that has brought about brand commitment from their side and the previous's constant support of quality control to keep this brandloyalty is an added aspect giving it a competitive edge.

As per the Enron Gas Services VIRO structure, if a company's sources are valuable but can be copied conveniently, it may have a temporary affordable advantage. In FG's case, it can be seen just how a continual competitive advantage is possible via the company's flexibility, market-orientated technique, received long-termrelationships and innovative abilities of the business owner.