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Lulucom Case VRIO Analysis

CASE SOLUTION


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Lulucom Case Study Solution

Numerous locations can be determined where FG has a competitive edge over its rivals. These locations would be examined making use of the Lulucom VIRO framework where the 'worth', 'inimitability', 'rarity' and company' of FG would be evaluated in regards to its payment towards its one-upmanship. The framework has been displayed in appendix 3.

It can be seen that FG is providing a value-added product, which is not just a method of getting high margins for the business, yet is valuable for the customer also. Smoked seafood items are looked upon as value-added things therefore FG is definitely supplying worth to the market and also to the business owner in the form of high saving possibility from fish products. Also, FG's ability to generate original Asian inspired smoked seafood products can be thought about an inimitable skill.

Business has put obstacles to entry for new participants by motivating consumers to be requiring in regards to requesting their preferences. Not just has this made the service uncommon, it has enhanced the expense of access for specific niche gamers since FG's diversity and versatility can not be matched by new participants in the brief run. This highlights one more point of inimitability.

The truth that business is not product-orientated yet is a market-orientated service which is flexible sufficient in its ability to adjust to vibrant market circumstances recommends that its means of organizing solutions is definitely its one-upmanship. Along with this, the business is arranged to ensure that it has much less reliance on importers and trading firms which contributes to its one-upmanship as a company in a market where smoked fish products need to be imported from other countries.

Along with these factors, FG's long-term connections with its client that has actually resulted in brand commitment from their side and also the former's constant support of quality control to maintain this brandloyalty is an added variable offering it a competitive edge.

According to the Lulucom VIRO framework, if a company's sources are valuable however can be imitated easily, it may have a short-term affordable advantage. However, a continual affordable benefit would result from sources which are useful, uncommon and also costly to mimic while at the same time the firm has the capacity to organize these for an optimal advantage (Rothaermel, 2013). In FG's case, it can be seen just how a continual competitive benefit is possible with the company's adaptability, market-orientated method, suffered long-termrelationships and ingenious abilities of the entrepreneur. These factors have already been talked about in the Lulucom SWOT analysis as internal staminas.