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Value Chain Analysis of Fishery in Puri and Ganjam District of Orissa

Value Chain Analysis of Fishery in Puri and Ganjam District of Orissa

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Draft Report on “<strong>Fishery</strong> Supply <strong>Cha<strong>in</strong></strong>”<br />

Confidential<br />

8.7 VRIO - traders’ competitive capabilities framework<br />

This framework is employed to f<strong>in</strong>d out the relevance <strong>of</strong> the traditional value cha<strong>in</strong> for fishery<br />

sector. In this analysis, the efficiency, effectiveness <strong>and</strong> usability <strong>of</strong> the value cha<strong>in</strong> is analyzed <strong>in</strong><br />

terms <strong>of</strong> the value <strong>of</strong> the product for the customer i.e. to say the price <strong>of</strong> the product that the f<strong>in</strong>al<br />

consumer is pay<strong>in</strong>g or is will<strong>in</strong>g to pay. This helps us to assign a ‘f<strong>in</strong>al value to the product’. The<br />

second component <strong>of</strong> the framework is the consequence <strong>of</strong> the larger market (global market),<br />

which acts as a competitor to the product with the domestic market. The underst<strong>and</strong><strong>in</strong>g <strong>of</strong> this<br />

elements helps to ga<strong>in</strong> <strong>in</strong>sight <strong>in</strong> terms <strong>of</strong> product acceptance <strong>and</strong> dem<strong>and</strong> <strong>in</strong> the larger market.<br />

Keep<strong>in</strong>g <strong>in</strong> focus the dem<strong>and</strong> attributes, the question ‘whether an option <strong>of</strong> a parallel value cha<strong>in</strong><br />

is viable or not” has been checked. Also parameters <strong>of</strong> <strong>in</strong>efficiency, if any, <strong>in</strong> the exist<strong>in</strong>g cha<strong>in</strong> has<br />

been cross checked with the proposed supply cha<strong>in</strong>. The last element employs the concept <strong>of</strong><br />

br<strong>and</strong><strong>in</strong>g <strong>and</strong> product position<strong>in</strong>g <strong>in</strong> the market. It checks the uniqueness <strong>of</strong> the ‘value cha<strong>in</strong>’<br />

aga<strong>in</strong>st elements <strong>of</strong> product st<strong>and</strong>ard <strong>and</strong> modus oper<strong>and</strong>i <strong>of</strong> delivery.<br />

In short the basic question VRIO analysis puts forward are –<br />

V = what is the supply value for customers?<br />

R = how rare is the supply compared to competitors?<br />

I = Can the supply be imitated?<br />

O = is the supply covered by organizational uniqueness?<br />

To summarize we can say that this analysis is all about check<strong>in</strong>g the value cha<strong>in</strong> <strong>in</strong> terms <strong>of</strong> –<br />

1. Supply <strong>of</strong> product<br />

2. Place/ distribution<br />

3. Promotion <strong>and</strong> price<br />

4. Service <strong>and</strong> customer relations<br />

Figure 8.2<br />

VRIO<br />

analysis<br />

Submitted by -: NiMble System Pvt. Ltd.<br />

Submitted to -: OXFAM (India) Trust 59

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