1. What are the key elements of Silver Ships’ strategy? Which of the five generic strategies is the company pursuing?
The first key element of Silver Ship’s strategy is multiple growth opportunities. R&D, technology, and product design are also key elements of Silver Ship’s strategy. McCarty adhered to the highest possible quality and performance standards and made taking care of his employees a high priority. The generic strategy that Silver Ships is using is planned proactive moves to attract customers and out compete rivals via improved product design, better features, higher quality, wider selection, lower prices, etc.
2. Explain the competitive pressures facing the aluminum military and workboat industry. What can a
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We believe all companies have weakness, but in reviewing the case we are having a hard time identifying these weaknesses. Market opportunities exist with continuing to promote the company at boat shows and bidding on demands from the military and law agency. Another marketing opportunity is using with exist resources to focus on a new innovation for small-scale terrorist operations, a significant new area in naval warfare and the Army’s planned replacement for bridge erection boats.
We agree that McCarty external threats are the stagnant economy and existing rivals. McCarty must be careful with decision to expand with the current slow pace of economic recovery. McCarty never had to lay off employees before and wanted to keep this trend. Existing rivals’ expansion may nibble at McCarty’s current clients depending on McCarty’s strategic decisions.
5. What is your assessment of Silver Ship’s financial performance and condition? Is the company in good financial shape? Why or why not. Use financial rations to help support your assessment.
Silver Ships is in a mediocre financial condition as of 2009. From 2006 to 2009 Silver Ships increased net sales by five million dollars. Silver Ships net income dropped during the recent recession, but began to grow again in 2009. Return on equity also dropped during the recession but began to climb in 2009.
Although the company has been in business for over a hundred years it has encountered several challenges. One weakness is its image. As described earlier this image is not conducive to one to be associated with the kindler, softer side of humanity. Another threat or weakness is the continued outsourcing of manufacturing of parts and accessories into overseas markets and companies. Although, there is no set percentage
3. How serious is the competitive threat from Continental and United? Please explain. What issues should Ann raise at the meeting? What would be your recommendations?
2. Suppose a customer buys an iPhone from Apple for $500 on January 1, 2010. The cost of the iPhone to Apple is $350. Assume that the customer is entitled to upgrades over the next two years. Use the following financial statement effects template (FSET) to illustrate the financial statement impacts for Apple of the customer's iPhone purchase on the date of the initial purchase and at the end of each of the two years following the initial purchase under generally accepted accounting principles (GAAP).
Winnebago operates in the luxury recreational motor vehicles industry. It’s main competitors are Thor industries, Malibu Boats, Polaris Industries, and Brunswick Corporation. These firms were chosen due to the fact that, while they may not all be in the RV industry, they sell similar products as Winnebago. Winnebago’s main line of business in the RV industry of all classes A, B, and C. Thor is the most similar to Winnebago due to the fact that all of its products are specifically in RV industry. Polaris, Brunswick offer a variety of products along with Recreational vehicles such from everything to snowmobiles to gym equipment. Malibu specializes in the boating industry, specifically small boats and boating accessories. The four competitors and Winnebago manufacture the products at their distribution centers and distribute them to to dealers who sell their products to the end customers. We have researched the luxury motor vehicle industry using the Porters Five Forces Model. The Porters Five Forces Model helped us analyze the different trends within the industry and see where Winnebago stands within them.
Due to the growing competition and diminishing market share, companies are opting for different strategies to achieve their survival objectives as well as growth. Companies are thus executing grand strategies to provide their businesses with a clear direction for its strategic actions. These strategies, therefore, aim at both short term and long term sustainability and growth, and they include innovation, market development, product development, and concentration.
Tesco has a good progress and their strategy is made up of of five elements:
We think that daily spot hire rate will likely decrease next year. There are two reasons. First, there are 63 new vessels scheduled for delivery in 2001 to increase the supply of vessel and only few old vessels need to be retired, while the demand will not increase because imports of iron ore and coal would remain stagnant over next two years. Second, exhibit 5 shows that avg. spot rate of 2000 was higher than the rate of previous years and avg. 3-yr charter rate. In addition, the market will seemingly go up after two years. Therefore, ship owners should hope to sign short-term contract through using lower daily spot hire rate rather than locking low daily high rate for a long period.
3.How these strategies are related the performance of these companies over time? Why? What is going on in terms of industry competition and markets that makes one strategy outperform the other at any point in time?
The current strategy of the company is to enter foreign markets and to succeed there. The corporate main strategy is to provide high quality product to its customers.
Q1. How did the competitive environment change for John Deere Company between the 1970 and 1980?
3) How would you characterize the long-term prospects of the capesize dry bulk industry? (10 points)
1) Which of the five generic competitive strategies discussed Chapter 5 most closely fit the competitive approach that Redbox is taking? Why did you select the strategy you selected?
Sea Goddess Cruises, Limited (SGC) is obviously not accomplishing what it needs to financially to obtain a fair share of the market. There are a number of current strategies that will be reconsidered and rejected.
Porter’s 3 generic strategies is a tool of measuring whether a company is following cost leadership, differentiation or focus strategy approaches. In cost leadership approach, the company is having a competitive advantage by offering competitive low prices. In the case of Etihad, the company is not offering a low cost strategy because they want to be characterized as a prestigious airline that has competitive advantage among others.