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Fortress Investment Group Case VRIO Analysis


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Fortress Investment Group Case Study Analysis

A number of areas can be recognized where FG has an one-upmanship over its rivals. These locations would be analyzed using the Fortress Investment Group VIRO framework where the 'value', 'inimitability', 'rarity' and company' of FG would certainly be evaluated in terms of its payment in the direction of its competitive edge. The structure has been presented 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, yet is important for the consumer too. Smoked seafood products are considered as value-added items therefore FG is certainly supplying value to the market as well as to the business owner in the form of high saving possibility from fish products. Likewise, FG's ability to produce original Eastern passionate smoked seafood products can be considered an unique ability.

Business has placed barriers to entrance for brand-new participants by motivating customers to be requiring in terms of requesting their choices. Not just has this made the service uncommon, it has actually raised the expense of entrance for niche gamers considering that FG's diversity and versatility can not be matched by brand-new participants in the brief run. This highlights an additional point of inimitability.

The reality that business is not product-orientated but is a market-orientated company which is versatile enough in its capacity to adjust to vibrant market situations recommends that its way of organizing solutions is absolutely its competitive edge. The service is arranged so that it has much less reliance on importers and also trading business which adds to its competitive edge as a company in a market where smoked fish products have actually to be imported from other nations.

In addition to these factors, FG's long term partnerships with its consumer that has led to brand name loyalty from their side and also the previous's consistent reinforcement of quality assurance to maintain this brandloyalty is an extra factor providing it an one-upmanship.

According to the Fortress Investment Group VIRO structure, if a firm's sources are important however can be imitated easily, it may have a temporary competitive advantage. A sustained competitive advantage would certainly result from resources which are useful, uncommon and costly to mimic while at the same time the company has the ability to organize these for an ideal advantage (Rothaermel, 2013). In FG's case, it can be seen exactly how a sustained competitive advantage is possible with the firm's adaptability, market-orientated approach, suffered long-termrelationships and innovative skills of the business owner. These factors have currently been reviewed in the Fortress Investment Group SWOT analysis as interior strengths.