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Nutra Foods Case VRIO Analysis


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Nutra Foods Case Study Solution

A number of areas can be identified where FG has an one-upmanship over its rivals. These locations would certainly be assessed using the Nutra Foods VIRO structure where the 'value', 'inimitability', 'rarity' and also company' of FG would be assessed in regards to its contribution in the direction of its one-upmanship. The structure has been presented in appendix 3.

It can be seen that FG is using a value-added product, which is not just a way of obtaining high margins for business, yet is useful for the customer also. Smoked fish and shellfish products are looked upon as value-added items and so FG is absolutely providing worth to the marketplace and to the business owner in the form of high conserving possibility from fish items. Similarly, FG's capacity to generate original Eastern passionate smoked seafood items can be considered an inimitable ability.

Business has actually placed obstacles to access for brand-new participants by encouraging consumers to be requiring in terms of requesting for their preferences. Not only has this made the solution unusual, it has actually raised the expense of access for niche players considering that FG's diversity and also flexibility can not be matched by brand-new participants in the brief run. This highlights an additional factor of inimitability.

The reality that the business is not product-orientated however is a market-orientated business which is flexible enough in its ability to get used to dynamic market scenarios suggests that its means of organizing services is definitely its one-upmanship. The company is organized so that it has much less reliance on importers and also 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 nations.

Along with these factors, FG's long-term relationships with its customer that has actually led to brand loyalty from their side and the previous's constant reinforcement of quality control to maintain this brandloyalty is an extra element giving it an one-upmanship.

Based on the Nutra Foods VIRO structure, if a company's resources are useful yet can be mimicked quickly, it may have a short-lived affordable benefit. Nevertheless, a sustained competitive advantage would result from sources which are valuable, uncommon and also pricey to copy while at the same time the company has the capacity to organize these for an optimum benefit (Rothaermel, 2013). In FG's case, it can be seen how a sustained competitive advantage is possible through the company's versatility, market-orientated strategy, sustained long-termrelationships and ingenious skills of the entrepreneur. These factors have actually already been gone over in the Nutra Foods SWOT analysis as interior toughness.