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Khosla Ventures Biofuels Strategy Case VRIO Analysis

CASE SOLUTION


Home >> Harvard >> Khosla Ventures Biofuels Strategy >> Vrio Analysis

Khosla Ventures Biofuels Strategy Case Study Solution

Numerous locations can be recognized where FG has a competitive edge over its rivals. These areas would certainly be assessed utilizing the Khosla Ventures Biofuels Strategy VIRO framework where the 'worth', 'inimitability', 'rarity' and company' of FG would certainly be assessed in regards to its payment in the direction of its one-upmanship. The structure has actually been shown in appendix 3.

It can be seen that FG is using a value-added item, which is not just a way of obtaining high margins for the business, yet is useful for the consumer as well. Smoked seafood items are considered as value-added products therefore FG is definitely using value to the market and to the entrepreneur in the kind of high conserving potential from fish products. Similarly, FG's capability to create original Asian passionate smoked fish and shellfish products can be thought about an unique ability.

Business has actually put barriers to entry for new entrants by encouraging consumers to be demanding in regards to requesting for their preferences. Not just has this made the solution unusual, it has raised the price of entry for niche gamers given that FG's diversification and adaptability can not be matched by new participants in the short 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 adaptable sufficient in its capacity to get used to vibrant market situations suggests that its method of arranging solutions is certainly its one-upmanship. The service is arranged so that it has much less dependence on importers as well as trading business which adds to its competitive side as a company in a market where smoked fish items have to be imported from other countries.

In addition to these factors, FG's long-term relationships with its consumer that has actually brought about brand name loyalty from their side and the former's constant reinforcement of quality assurance to preserve this brandloyalty is an added factor offering it an one-upmanship.

As per the Khosla Ventures Biofuels Strategy VIRO framework, if a firm's sources are valuable but can be copied easily, it may have a short-lived competitive advantage. In FG's case, it can be seen just how a continual affordable advantage is feasible with the firm's adaptability, market-orientated strategy, endured long-termrelationships as well as cutting-edge abilities of the entrepreneur.