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Providian Financial Corporation Case VRIO Analysis

CASE SOLUTION


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Providian Financial Corporation Case Study Solution

Numerous areas can be recognized where FG has a competitive edge over its competitors. These areas would be assessed making use of the Providian Financial Corporation VIRO structure where the 'value', 'inimitability', 'rarity' as well as organization' of FG would certainly be examined in terms of its payment in the direction of its one-upmanship. The framework has been displayed in appendix 3.

It can be seen that FG is offering a value-added item, which is not simply a means of acquiring high margins for the business, yet is useful for the customer too. Smoked seafood items are looked upon as value-added things and so FG is certainly using worth to the market as well as to the entrepreneur in the type of high saving potential from fish products. FG's capacity to create initial Asian passionate smoked seafood items can be considered an unmatched skill.

The business has put barriers to access for brand-new participants by encouraging customers to be demanding in regards to asking for their preferences. Not only has this made the service rare, it has increased the cost of entrance for particular niche gamers given that FG's diversification and also adaptability can not be matched by brand-new participants in the brief run. This highlights one more point of inimitability.

The truth that business is not product-orientated but is a market-orientated business which is flexible enough in its ability to adjust to vibrant market circumstances recommends that its way of organizing solutions is definitely its one-upmanship. Along with this, business is arranged to make sure that it has less dependence on importers as well as trading companies which contributes to its one-upmanship as an organization in a market where smoked fish products need to be imported from various other countries.

Along with these factors, FG's long-term relationships with its consumer that has actually brought about brand name loyalty from their side as well as the former's consistent support of quality assurance to maintain this brandloyalty is an additional element offering it a competitive edge.

Based on the Providian Financial Corporation VIRO structure, if a company's resources are valuable however can be copied easily, it might have a momentary competitive advantage. A sustained affordable benefit would certainly result from resources which are valuable, rare and also expensive to mimic while at the exact same time the firm has the capacity to organize these for an optimum benefit (Rothaermel, 2013). In FG's case, it can be seen how a sustained competitive benefit is possible with the firm's adaptability, market-orientated approach, endured long-termrelationships as well as cutting-edge skills of the entrepreneur. These factors have already been reviewed in the Providian Financial Corporation SWOT analysis as internal toughness.