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Lulucom Case VRIO Analysis

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Lulucom Case Study Solution

A number of locations can be recognized where FG has an one-upmanship over its rivals. These locations would certainly be examined making use of the Lulucom VIRO structure where the 'value', 'inimitability', 'rarity' as well as organization' of FG would be examined in terms of its payment towards its one-upmanship. The structure has actually been presented in appendix 3.

It can be seen that FG is supplying a value-added product, which is not simply a way of getting high margins for business, however is valuable for the customer also. Smoked seafood products are considered as value-added products therefore FG is definitely providing worth to the market and to the business owner in the form of high saving possibility from fish items. FG's ability to create initial Oriental inspired smoked seafood items can be considered an inimitable skill.

The business has placed obstacles to entry for brand-new entrants by urging clients to be demanding in terms of requesting their preferences. Not just has this made the solution uncommon, it has boosted the expense of entrance for particular niche gamers because FG's diversification and flexibility can not be matched by new participants in the short run. This highlights another factor of inimitability.

The reality that business is not product-orientated however is a market-orientated business which is versatile sufficient in its capacity to adjust to dynamic market scenarios recommends that its method of arranging services is certainly its one-upmanship. Along with this, business is arranged to ensure that it has less dependence on importers and trading business which adds to its one-upmanship as a company in a market where smoked fish products need to be imported from various other countries.

In addition to these factors, FG's long term relationships with its client that has caused brand name loyalty from their side and also the former's constant reinforcement of quality assurance to keep this brandloyalty is an added variable providing it an one-upmanship.

As per the Lulucom VIRO framework, if a company's resources are beneficial yet can be mimicked quickly, it may have a short-term affordable benefit. In FG's case, it can be seen how a sustained competitive benefit is possible through the company's versatility, market-orientated method, suffered long-termrelationships and ingenious abilities of the business owner.