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Harrington Financial Group Case VRIO Analysis

CASE STUDY


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Harrington Financial Group Case Study Analysis

A number of locations can be identified where FG has a competitive edge over its rivals. These locations would be analyzed utilizing the Harrington Financial Group VIRO framework where the 'worth', 'inimitability', 'rarity' and also organization' of FG would certainly be reviewed in terms of its payment towards its one-upmanship. The structure has been presented in appendix 3.

It can be seen that FG is offering a value-added item, which is not just a way of getting high margins for the business, but is beneficial for the customer also. Smoked fish and shellfish items are looked upon as value-added items and so FG is certainly using value to the market and also to the business owner in the form of high conserving possibility from fish products. Also, FG's ability to generate original Oriental passionate smoked seafood products can be considered a supreme skill.

The business has actually placed barriers to entrance for new entrants by encouraging clients to be requiring in terms of requesting for their preferences. Not only has this made the service uncommon, it has actually increased the price of entrance for specific niche gamers because FG's diversification and also adaptability can not be matched by brand-new participants in the short run. This highlights an additional factor of inimitability.

The truth that business is not product-orientated yet is a market-orientated service which is adaptable enough in its ability to adjust to vibrant market scenarios recommends that its method of organizing services is definitely its competitive edge. The business is organized so that it has less dependence 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 various other nations.

In addition to these factors, FG's long-term partnerships with its consumer that has caused brand name loyalty from their side and the former's constant support of quality assurance to keep this brandloyalty is an added element giving it a competitive edge.

According to the Harrington Financial Group VIRO framework, if a firm's resources are beneficial yet can be mimicked easily, it might have a short-lived affordable advantage. A continual competitive advantage would result from sources which are valuable, rare and also costly to imitate while at the exact same time the company has the capability to arrange these for an optimal benefit (Rothaermel, 2013). In FG's case, it can be seen just how a sustained competitive benefit is feasible through the company's adaptability, market-orientated technique, received long-termrelationships and also cutting-edge skills of the entrepreneur. These factors have actually currently been talked about in the Harrington Financial Group SWOT analysis as internal strengths.