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Khosla Ventures Investing In Ethanol Case VRIO Analysis


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Khosla Ventures Investing In Ethanol Case Study Help

A number of locations can be identified where FG has an one-upmanship over its competitors. These locations would be analyzed using the Khosla Ventures Investing In Ethanol VIRO structure where the 'value', 'inimitability', 'rarity' and organization' of FG would certainly be reviewed in regards to its contribution towards its competitive edge. The structure has been displayed in appendix 3.

It can be seen that FG is providing a value-added product, which is not just a means of acquiring high margins for the business, but is beneficial for the client too. 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 kind of high conserving potential from fish items. Furthermore, FG's ability to produce initial Oriental inspired smoked seafood products can be considered an inimitable skill.

Business has placed obstacles to access for new entrants by urging clients to be demanding in regards to requesting for their preferences. Not only has this made the solution uncommon, it has raised the price of entry for specific niche gamers since FG's diversity as well as adaptability can not be matched by brand-new entrants in the short run. This highlights an additional factor of inimitability.

The fact that the business is not product-orientated but is a market-orientated organisation which is versatile sufficient in its ability to adjust to dynamic market scenarios recommends that its way of organizing solutions is certainly its one-upmanship. The company is arranged so that it has less reliance on importers and also trading companies which adds to its competitive side as an organization in a market where smoked fish products have to be imported from various other countries.

In addition to these factors, FG's long-term relationships with its consumer that has actually led to brand commitment from their side as well as the former's continuous reinforcement of quality assurance to maintain this brandloyalty is an added factor giving it a competitive edge.

As per the Khosla Ventures Investing In Ethanol VIRO structure, if a firm's resources are useful however can be copied easily, it may have a short-lived competitive benefit. In FG's case, it can be seen how a sustained competitive advantage is feasible with the firm's flexibility, market-orientated method, sustained long-termrelationships as well as cutting-edge skills of the entrepreneur.