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Rent Seeking Behaviour In The Power Market Case VRIO Analysis

CASE ANALYSIS


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Rent Seeking Behaviour In The Power Market Case Study Solution

A number of locations can be recognized where FG has a competitive edge over its rivals. These areas would be examined using the Rent Seeking Behaviour In The Power Market VIRO structure where the 'value', 'inimitability', 'rarity' and also company' of FG would certainly be assessed in terms of its payment in the direction of its one-upmanship. The structure has been shown in appendix 3.

It can be seen that FG is offering a value-added product, which is not simply a way of acquiring high margins for business, yet is beneficial for the consumer also. Smoked seafood items are considered as value-added things therefore FG is absolutely supplying value to the marketplace and to the business owner in the type of high saving possibility from fish products. Similarly, FG's capacity to generate original Asian inspired smoked seafood items can be considered an inimitable ability.

The business has actually put barriers to entrance for new entrants by motivating customers to be demanding in regards to asking for their preferences. Not just has this made the solution rare, it has boosted the expense of entry for specific niche gamers because FG's diversity and also adaptability can not be matched by brand-new participants in the brief run. This highlights another factor of inimitability.

The reality that the business is not product-orientated however is a market-orientated company which is versatile enough in its capability to adapt to dynamic market situations recommends that its method of organizing services is absolutely its one-upmanship. The company is arranged so that it has much less dependence on importers as well as trading firms which adds to its affordable edge as a company in a market where smoked fish items have to be imported from various other nations.

Along with these factors, FG's long term connections with its consumer that has actually resulted in brand commitment from their side and also the former's continuous reinforcement of quality assurance to keep this brandloyalty is an added element offering it a competitive edge.

As per the Rent Seeking Behaviour In The Power Market VIRO framework, if a firm's resources are important however can be imitated easily, it may have a temporary competitive benefit. In FG's case, it can be seen how a sustained competitive advantage is possible with the firm's flexibility, market-orientated method, endured long-termrelationships as well as ingenious skills of the entrepreneur.