Market overview
The boat building industry is still in its growth stage of the industry life cycle with new competitors and new models entering the industry. There is a continued demand for better, bigger, and more luxurious boats due to growing customer base of wealthy clients. Merbatty is offering luxury goods and it is very much subject to global changes in demand. Therefore, if another global recession happens, there would be a fall in demand for luxury goods and Merbatty would be affected.
New markets are mature for expansions. The emerging economies of China and India have good potential as the number of wealthy individuals increased. China, in particular, has becomes one of the biggest manufacturing countries in the world. It has the ability to be a real threat to the traditional boat building companies. As such, Merbatty which operates in other countries, including Europe has high labour costs compared to China which has low labour cost. China also has building plans that will significantly expand the available marina space. Therefore, Merbatty may become uncompetitive in price. The Middle East is also a key market and Merbatty’s future growth relies on this very much. One of the examples is Dubai, it is undergoing immense expansion and building works including a significant amount of new mooring space. This is probably the reason that the proposal to open a third boat facility in Surania had been approved by the Board.
Besides, Merbatty is operating in a competitive market. Hence, it has to ensure that its prices are competitive against similar models by its competitors. Merbatty also needs to offer its products in a competitive way, which may expose it to loss of revenue due to currency changes. Currency changes have r...
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...lling price of Merbatty’s boats. The designs of the boat come from Aqua Design. The problem lies here is that Aqua Designs operates throughout Europe and the USA, but it does not have operations in the Middle East. Hence, it declined all requests from Merbatty to provide the same interior design service for Merbatty’s new Suranian boat building facility. Merbatty need to find alternative supplier of design service with similar standard in order to safeguard the customers. Customers’ loyalty is uncertain. This is because the demand in luxury goods nowadays is different. It is inelastic for potential wealthy customers as they do not mind paying extra for what they desire. They might switch to competitors to look for what they want if the price does not vary significantly. Hence, the key point to retain customer is to build a boat that satisfy customers’ expectation.
The industry started a major growth phase in the late 1960s and early 1970s achieving more than 2,100 percent growth. The early goal of the cruise industry was to develop a mass market since cruising was until then an activity for the elite. A way to achieve this was through economies of scale as larger ships were able to accommodate more customers as well as to create additional opportunities for onboard sources of revenue. The global growth rate of the cruise industry has been enduring and stable, at around 7% per year in spite of economic cycles of growth and recession. For instance, the financial crisis of 2008-2009 has not impacted the demand for cruises. This underlines that the industry has been so far fundamentally supply based; the ships are built and the customers are found to fill them through various marketing and discounting strategies.
Merbatty is a boat company with an estimated 8% market share. This company has been in the boat building business for 33 years. Merbatty has wealthy and successful customers that focus more on the quality of the boats than the price. Thus it is important that they get more affordable but high quality material from the right suppliers. The company has put aside a lot of capital to expand over the next 5 years; this 5 year plan will help reach their profitability targets. They are mostly situated in and around the USA and Europe. It has come to their attention that the market has become more competitive and they find it difficult to reduce their cost. The sales made for the company are mostly made by sales agents around the world
He designed a beautiful child-size yacht that came in first. Ever since his first build he was in love and worked diligently to create bigger and better ships and he continued to win. As Bill sits inside Ruby’s diner enjoying a nice bowl of clam chowder he recalls the many races he won and the long journey he had taken to start building luxury ships as well as utilitarian ships to carry large amounts of cargo. He loved to reminisce about the long ago days of beautiful sailboats that would be built by hand with his team of master carpenters. Back then everything was so simple but also so detailed. Nowadays everything is fast paced and rushed. Everyone is looking for those fast speed boats to zip around the harbor and local
MILITARY FACTOR: Measures a member’s ability to bring credit to the Coast Guard through personal demeanor and professional actions. 1. Military Bearing: • This member has presented herself in a military manner and has maintained her uniform with great care. As a member of the Sector Lake Michigan Honor’s and Ceremonies team she attends numerous functions that require her to present herself in a positive way to the public. This Includes dry cleaning her bravos every month to insure a sharp look and buying new uniform items.
From dress making to signature luxury hotels then to uniquely signature fragrance and finally to yachting business. In January 2010, ES entered the most exclusive and wealthy business field which is specially meant by extra-ordinary high-end users. ES signed a contract with Weyves International Ltd. and Oceanco, a mega yachting company to conceptualize the interior and exterior design of the luxury yachts. The international reputation of ES gave it the pleasure to be welcomed by big players in several fields of business. However, that diversification in the portfolio of ES have strengthen its position and maintained its growth in the overall portfolio. (Albert & Whetten,1985, pp.
Other associated business related to marina industry such as fishing, tourism and companies that sells outdoor clothing, equipment’s and services are strongly influenced by boating. In a study conducted by the National Marine Manufacturers Association (NMMA) Canada on the impact of the Canadian economy by the contribution of Canadian recreational boating industry, 9.4 million people that equates
The first of these strategies that will be rejected deals with segmentation. Sea Goddess Cruises has not adequately considered enough segments in the market, which has been a major contributor to the lack of market share. SGC should eliminate all plans for monosegmenting. As stated in earlier reports, the segment that SGC is trying to target (i.e. lawyers, doctors, CEOs, etc.) is not large enough to make consistent profit. SGC must look at some other segments to a greater variety of passengers, which may then lead to increased market share and revenue. We have found that the current segment is far too narrow and complex. SGC may want to try and market more to the upper-middle class or middle class portion of the population. In addition to this rejected strategy, it is important that SGC does not oversegment in their efforts to improve the company. Oversegmentation is extremely expensive and a majority of segments do not have the financial abilities it takes to enjoy a Sea Goddess cruise. Also, the current facilities are very limited, considering SGC only employs to ships.
Empress Luxury Lines is a company that offered cruise vacations to the vacationers. In 1990s, this company had achieved high demand from the customers and they had increased their cruises in order to meet the demand during the stock market bubble. However, this increment of the demand did not last for long time. Unfortunately, the company had to face with several problems which caused the decrease of its demand. Like, in the year 2000, there was a dramatic fall in the stock market due to the incident of September 11 that badly affected the nation, sudden drop of bookings caused by the Norwalk virus and also the strike of the hurricanes at the Caribbean and Gulf ports in 2005 caused a huge amount of refunds.
Through out the semester in Principles of Management, the class has learned many different ways to go about running and operating a business along with how to manage a business. Out of all the different ways, Strategic planning and SWOT analysis appeared to be more interesting than other subjects and learning more about them could help some body run a business in a more professional manor. SWOT analysis is a simple way to see whats on the table and it can help build a business by using the information you find and strengthening the weakness, taking advantage of opportunities and facing whatever threats a business may have. () Strategic planning is the application of the basic planning process at the highest level of planning. () This form of planning has a few different stages that it goes through to ensure that it is the best way possible to carry out plan. SWOT analysis and strategic planning are used daily in the business workforce and are great tools for success.
The company’s current strategy is to attract more repeat cruisers and new cruisers of different segments by offering different types of packages. Such differences include choice of shorter or longer cruises, a low to moderate price for affordable cruises for middle class, and longer luxury cruises for affluent classes. As part of the company’s plan, Carnival is "going global" through a joint venture with Hyundai Merchant Marine to the Asia market.
The SWOT analysis is a useful tool for identifying our personal strengths, weaknesses, opportunities, and threats to our plans and goals. According to a “Fuel My Motivation” article (2010), this analysis considers internal influences that can positively or negatively affect our ability to achieve our goals. The internal factors are our strengths and weaknesses. Also considered are opportunities and threats, which are external influences that can have a positive or negative impact on the ability to achieve our goals. I will share how the self-assessment instruments and self-exercises in this course have contributed to assessing and understanding my strengths and weaknesses. I will also discuss techniques I will use to leverage my strengths and understand my weaknesses. In addition, I will consider opportunities that I can take advantage of and the threats that can possibly impede my progress.
The following has been discussed in the document proceeded in order to fully understand Mr Price Group Ltd. Focusing on Mr Price clothing. There is a brief history of the company and the struggle it in counted before become a successful franchise. The successful business is then further analysed using a variety of tools such as SWOT, Porter’s Five Force Model and PESTLE. Once all issues relating to the business are mentioned, strategies are recommended in order for the business to reach full potential. This is all found using primary and secondary resources.
“Despite worldwide softness in the sale of luxury goods, LVMH has cemented its position as the world’s largest and most profitable player in the category. To stay there it must keep its customers loyal and its brand strong and find new markets worldwide” (Hazlett C. 2004). That is why in its mission they state to represent the most refined qualities of Western “ art de vivre” all around the world. Their objective is to be the leader in the luxury market, continuing to transmit elegance and creativity. This poses some major challenges, the main one is to keep being the leader in the luxury market through a sustainable growth. The main problem to achieve it is the high dependency on three main countries, France, Japan and USA. This becomes a threat because if there is an economic downturn in one country it affects LVMH directly that is why.
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Fiber optics is a new technology that uses rays of light instead of electricity to transmit information over optical fibers at very high speeds. The optical fibers are usually thin strands of glass that are combined into cables and used to send information and computer data in the form of pulses of light. The optical fibers provide much clearer transmission than conventional copper cable and satellite links. The world market for optical fiber continues to grow rapidly, with shipments increasing 14 percent from an estimated 7.0 million kilometers of fiber in 1990 to approximately 8.0 million in 1991. The demand for multimode fiber is predicted to continue to expand through the mid-1990s, with some market analysts indicating that 15 to 20 percent annual growth over the next three years is reasonable. Strong demand is expected for singlemode and multimode fiber to be used in cables for local area networks, telecommunications, cable television (CATV), and transoceanic fiber-optic systems.