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Private Equity Exits Case VRIO Analysis


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Private Equity Exits Case Study Help

Numerous locations can be determined where FG has an one-upmanship over its rivals. These areas would certainly be examined using the Private Equity Exits VIRO structure where the 'worth', 'inimitability', 'rarity' as well as organization' of FG would be evaluated in terms of its contribution in the direction of its competitive edge. The framework has been shown in appendix 3.

It can be seen that FG is offering a value-added item, which is not simply a way of getting high margins for the business, but is useful for the customer also. Smoked fish and shellfish products are looked upon as value-added products and so FG is definitely using value to the market and to the business owner in the type of high saving potential from fish items. Furthermore, FG's ability to generate initial Asian passionate smoked fish and shellfish items can be considered an unmatched ability.

Business has actually placed barriers to access for brand-new participants by encouraging clients to be demanding in regards to requesting their choices. Not just has this made the solution unusual, it has raised the expense of entry for specific niche gamers since FG's diversification as well as flexibility can not be matched by brand-new entrants in the short run. This highlights one more factor of inimitability.

The reality that business is not product-orientated but is a market-orientated business which is flexible enough in its ability to adjust to dynamic market situations recommends that its means of arranging services is definitely its one-upmanship. Along with this, business is organized to ensure that it has much less reliance on importers and also trading business which adds to its competitive edge as a company in a market where smoked fish items have to be imported from various other countries.

In addition to these factors, FG's long term connections with its customer that has resulted in brand name loyalty from their side as well as the previous's continuous support of quality assurance to maintain this brandloyalty is an extra element giving it an one-upmanship.

According to the Private Equity Exits VIRO framework, if a company's sources are beneficial but can be copied conveniently, it may have a temporary competitive advantage. A continual competitive advantage would certainly result from resources which are useful, rare and expensive to imitate while at the exact same time the firm has the capacity to arrange these for an optimal benefit (Rothaermel, 2013). In FG's case, it can be seen just how a sustained competitive benefit is feasible through the company's versatility, market-orientated strategy, sustained long-termrelationships and also ingenious abilities of the business owner. These factors have currently been reviewed in the Private Equity Exits SWOT analysis as inner strengths.