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Nextel Partners Put Option Case VRIO Analysis

CASE STUDY


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Nextel Partners Put Option Case Study Analysis

Numerous locations can be recognized where FG has an one-upmanship over its rivals. These locations would certainly be examined utilizing the Nextel Partners Put Option VIRO framework where the 'value', 'inimitability', 'rarity' as well as company' of FG would certainly be assessed in terms of its payment in the direction of its competitive edge. The framework has actually been presented in appendix 3.

It can be seen that FG is using a value-added item, which is not just a method of acquiring high margins for business, yet is valuable for the client also. Smoked fish and shellfish products are looked upon as value-added products therefore FG is absolutely using worth to the market and also to the business owner in the type of high conserving possibility from fish products. FG's capacity to generate original Eastern inspired smoked fish and shellfish items can be taken into consideration an unmatched ability.

The business has put barriers to entrance for brand-new participants by encouraging consumers to be demanding in terms of requesting their choices. Not just has this made the service unusual, it has actually raised the cost of entrance for specific niche gamers since FG's diversification and also flexibility can not be matched by brand-new entrants in the short run. This highlights another factor of inimitability.

The truth that the business is not product-orientated however is a market-orientated business which is adaptable enough in its ability to adapt to dynamic market circumstances recommends that its way of organizing solutions is absolutely its one-upmanship. The organisation is arranged so that it has much less dependence on importers and trading firms which adds to its affordable side as a company in a market where smoked fish products have actually to be imported from various other countries.

Along with these factors, FG's long term partnerships with its client that has led to brand commitment from their side and the previous's consistent support of quality assurance to maintain this brandloyalty is an extra aspect giving it a competitive edge.

According to the Nextel Partners Put Option VIRO structure, if a company's resources are beneficial however can be imitated conveniently, it might have a temporary affordable advantage. A sustained competitive advantage would result from resources which are useful, unusual as well as costly to imitate while at the exact same time the firm has the capacity to arrange these for an optimal advantage (Rothaermel, 2013). In FG's case, it can be seen how a sustained competitive advantage is possible with the company's adaptability, market-orientated strategy, received long-termrelationships and also cutting-edge skills of the entrepreneur. These factors have currently been discussed in the Nextel Partners Put Option SWOT analysis as internal toughness.