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Freeport Indonesia Case VRIO Analysis

CASE STUDY


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Freeport Indonesia Case Study Analysis

Numerous locations can be determined where FG has a competitive edge over its rivals. These locations would be evaluated utilizing the Freeport Indonesia VIRO framework where the 'worth', 'inimitability', 'rarity' and also organization' of FG would certainly be evaluated in terms of its payment in the direction of its competitive edge. The structure has actually been displayed 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 business, yet is important for the client too. Smoked seafood items are considered as value-added products therefore FG is absolutely using worth to the marketplace and also to the entrepreneur in the form of high conserving capacity from fish items. Likewise, FG's ability to generate original Eastern inspired smoked fish and shellfish products can be thought about a supreme ability.

The business has placed barriers to entrance for brand-new entrants by motivating customers to be demanding in regards to requesting for their choices. Not only has this made the solution rare, it has actually boosted the price of entry for specific niche gamers because FG's diversity as well as versatility can not be matched by new participants in the short run. This highlights an additional factor of inimitability.

The reality that business is not product-orientated yet is a market-orientated service which is flexible enough in its capacity to get used to dynamic market circumstances recommends that its way of arranging solutions is definitely its competitive edge. In addition to this, the business is arranged so that it has less dependence on importers and also trading companies which adds to its competitive edge as a company in a market where smoked fish items need to be imported from various other nations.

In addition to these factors, FG's long-term relationships with its client that has actually led to brand name commitment from their side and the previous's continuous reinforcement of quality control to keep this brandloyalty is an additional variable providing it an one-upmanship.

As per the Freeport Indonesia VIRO framework, if a firm's resources are important yet can be imitated quickly, it might have a momentary competitive benefit. In FG's case, it can be seen how a sustained competitive benefit is feasible via the firm's flexibility, market-orientated approach, received long-termrelationships and also cutting-edge abilities of the business owner.