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Financial Performance Reporting Case VRIO Analysis

CASE SOLUTION


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Financial Performance Reporting Case Study Solution

Several locations can be determined where FG has an one-upmanship over its rivals. These locations would be evaluated using the Financial Performance Reporting VIRO framework where the 'value', 'inimitability', 'rarity' and organization' of FG would certainly be reviewed in terms of its contribution towards its one-upmanship. The framework has been shown in appendix 3.

It can be seen that FG is supplying a value-added item, which is not just a method of acquiring high margins for the business, however is beneficial for the client too. Smoked seafood products are considered as value-added products and so FG is absolutely offering value to the market as well as to the entrepreneur in the type of high conserving potential from fish products. Similarly, FG's capacity to create initial Asian inspired smoked fish and shellfish products can be thought about a supreme ability.

The business has placed barriers to entrance for new entrants by encouraging consumers to be demanding in regards to requesting their preferences. Not just has this made the solution uncommon, it has actually increased the price of access for particular niche players considering that FG's diversity as well as versatility can not be matched by new entrants in the brief run. This highlights an additional factor of inimitability.

The truth that business is not product-orientated yet is a market-orientated company which is flexible sufficient in its capacity to get used to dynamic market circumstances suggests that its means of arranging solutions is absolutely its one-upmanship. In addition to this, the business is arranged to make sure that it has less dependence on importers and trading firms which adds to its one-upmanship as a company in a market where smoked fish items need to be imported from various other countries.

In addition to these factors, FG's long term relationships with its consumer that has actually caused brand commitment from their side and the former's continuous support of quality control to preserve this brandloyalty is an extra variable giving it a competitive edge.

Based on the Financial Performance Reporting VIRO framework, if a company's sources are useful however can be mimicked easily, it might have a short-term affordable benefit. A sustained competitive advantage would result from resources which are valuable, uncommon and costly to copy while at the very same time the company has the capacity to organize these for an ideal advantage (Rothaermel, 2013). In FG's case, it can be seen just how a continual competitive benefit is possible through the company's adaptability, market-orientated method, received long-termrelationships and innovative skills of the entrepreneur. These factors have actually already been discussed in the Financial Performance Reporting SWOT analysis as internal toughness.