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Lyondell Chemical Company Case VRIO Analysis


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Lyondell Chemical Company Case Study Solution

Several areas can be recognized where FG has a competitive edge over its competitors. These areas would be examined using the Lyondell Chemical Company VIRO framework where the 'worth', 'inimitability', 'rarity' and also company' of FG would certainly be assessed in regards to its payment towards its competitive edge. The structure has been displayed in appendix 3.

It can be seen that FG is using a value-added item, which is not just a method of getting high margins for business, yet is valuable for the client too. Smoked seafood items are looked upon as value-added things therefore FG is certainly providing worth to the marketplace and also to the entrepreneur in the form of high conserving capacity from fish items. Also, FG's ability to generate original Oriental passionate smoked seafood items can be considered an unique ability.

Business has placed barriers to access for new participants by motivating clients to be demanding in terms of asking for their preferences. Not only has this made the solution uncommon, it has enhanced the cost of entrance for particular niche players considering that FG's diversity and also adaptability can not be matched by brand-new entrants in the brief run. This highlights an additional point of inimitability.

The truth that business is not product-orientated yet is a market-orientated business which is versatile enough in its ability to get used to vibrant market circumstances recommends that its method of arranging solutions is absolutely its one-upmanship. The service is arranged so that it has much less dependence on importers and also trading companies which includes to its affordable edge as an organization in a market where smoked fish products have actually to be imported from various other countries.

In addition to these factors, FG's long term relationships with its customer that has actually resulted in brand name commitment from their side and also the previous's consistent support of quality control to keep this brandloyalty is an added aspect providing it a competitive edge.

As per the Lyondell Chemical Company VIRO framework, if a company's sources are useful however can be imitated conveniently, it may have a temporary affordable advantage. In FG's case, it can be seen exactly how a sustained affordable benefit is feasible with the firm's versatility, market-orientated method, suffered long-termrelationships and innovative skills of the entrepreneur.