Silver Ships Case Study
Recommendations for Silver Ships to gain a competitive advantage in the Military and Workboat Industry 1. Focus on the Gulf of Mexico a. As stated in Exhibit 4, Silver Ships has had quite a few buyers focused around the Gulf of Mexico. b. Alabama is in the middle of the US shoreline for the Gulf of Mexico. c. Silver Ships can use the International Workboat Show stated in Exhibit 3 to draw more customers from all around the Gulf. i. They have already have had previous orders from Panama, Jamaica, and Costa Rico. Mexico and the Dominican Republic are potential new buyers. ii. As off shore drilling comes back after the BP/Deepwater Horizon oil spill, Silver Ships can focus on more oil and gas companies.
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Buyers look for trusted names in the industry during the bidding process.
Exhibit 3
Driving Forces
The Military and Workboat Industry is based around differentiation of product while keeping cost low at the same time as high quality. These three drive the bidding process along with the ability to market their product. 1. Differentiation * Each boat builder offers something different: * Silver Ships acquired Ambar Marine for its ability to produce high-quality rigid-hull inflatable boats (RHIBs). * Aluminum Chamber Boats (ACB) differentiated itself by producing boats that do not sink even if the hull and a chamber are punctured. * SAFE Boats produces a RIB collar system that can withstand small-arms fire. * Metal Shark Boats boasted quick to market products such as their delivery of clean up boats during the BP/Deepwater Horizon oil spill. 2. Low cost * Aluminum, labor, and location are the main factors in keeping prices down for boat builders. * Aluminum prices vary greatly (from $0.65 per pound in 2003 to $0.80 per pound in 2008). This can be managed to a degree through hedging, inventory management, and waste
Buyers look for trusted names in the industry during the bidding process.
Exhibit 3
Driving Forces
The Military and Workboat Industry is based around differentiation of product while keeping cost low at the same time as high quality. These three drive the bidding process along with the ability to market their product. 1. Differentiation * Each boat builder offers something different: * Silver Ships acquired Ambar Marine for its ability to produce high-quality rigid-hull inflatable boats (RHIBs). * Aluminum Chamber Boats (ACB) differentiated itself by producing boats that do not sink even if the hull and a chamber are punctured. * SAFE Boats produces a RIB collar system that can withstand small-arms fire. * Metal Shark Boats boasted quick to market products such as their delivery of clean up boats during the BP/Deepwater Horizon oil spill. 2. Low cost * Aluminum, labor, and location are the main factors in keeping prices down for boat builders. * Aluminum prices vary greatly (from $0.65 per pound in 2003 to $0.80 per pound in 2008). This can be managed to a degree through hedging, inventory management, and waste