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Penn West Petroleum Ltd Case VRIO Analysis


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Penn West Petroleum Ltd Case Study Solution

Numerous areas can be recognized where FG has a competitive edge over its competitors. These areas would certainly be analyzed utilizing the Penn West Petroleum Ltd VIRO framework where the 'value', 'inimitability', 'rarity' as well as company' of FG would be examined in regards to its contribution in the direction of its competitive edge. The framework has been shown in appendix 3.

It can be seen that FG is providing a value-added item, which is not just a way of getting high margins for business, however is important for the client as well. Smoked seafood items are considered as value-added products therefore FG is certainly offering value to the marketplace and to the business owner in the type of high saving potential from fish products. FG's capability to produce initial Oriental inspired smoked seafood items can be taken into consideration an unique skill.

The business has actually put barriers to entrance for new entrants by urging clients to be demanding in terms of asking for their choices. Not just has this made the solution rare, it has actually increased the expense of entrance for specific niche players considering that FG's diversification and also versatility can not be matched by brand-new entrants in the brief run. This highlights an additional point of inimitability.

The truth that the business is not product-orientated but is a market-orientated service which is versatile sufficient in its capability to adjust to vibrant market scenarios suggests that its method of arranging services is absolutely its one-upmanship. In addition to this, the business is organized to ensure that it has less dependence on importers and also trading firms which includes in its competitive edge as a company in a market where smoked fish items have to be imported from other countries.

In addition to these factors, FG's long-term connections with its customer that has led to brand loyalty from their side as well as the former's consistent support of quality assurance to keep this brandloyalty is an added factor offering it a competitive edge.

As per the Penn West Petroleum Ltd VIRO structure, if a firm's sources are important but can be imitated quickly, it may have a momentary competitive benefit. A sustained competitive benefit would result from resources which are valuable, rare and also pricey to mimic while at the exact same time the company has the capability to arrange these for an optimal advantage (Rothaermel, 2013). In FG's case, it can be seen just how a continual affordable benefit is possible via the company's versatility, market-orientated strategy, suffered long-termrelationships and also innovative skills of the business owner. These factors have currently been reviewed in the Penn West Petroleum Ltd SWOT analysis as internal strengths.