Analysis on the Three Growth Options Essay Example

Analysis on the Three Growth Options Essay Example Analysis on the Three Growth Options Essay Analysis on the Three Growth Options Essay In this kind of value chain and set-up, the first applicable strategy to be used is broad differentiation strategy because of their broad market and large product line. In order to be a successful firm the following things should be emphasize and strengthen by the company: They must access to scientific researches and latest updates that concerns the Mega-yacht industry. They should also give emphasis on strengthening their skilled and creative development team. A strong sales team will be a great edge for them that has an ability to communicate and persuade people and companies to buy the company’s products. Strengthening the company’s reputation through quality service. Organized distribution channels- NSY should have a good standing relationship with all local suppliers that can possibly helped them served their clients They should also give incentives to those companies or buyers that buy in bulk to them or became their constant customers Stress continuous improvement and innovation in presenting the products that they offer If the company can properly implement the strategy they can build a competitive advantage, promote customer’s loyalty and knock the socks of rivals, ethically and honorably. Although the company should be careful in implementing this strategy because like any other strategies it has also weaknesses which the company should study very well on how will they be able to turn these weaknesses to strength. The company should be sensitive enough to play their card well. They should bear in mind that this is a fast –paced industry with so many changes going on and that there are possibilities that companies will merge or collaborate in order to have broader markets. The competitive strategies that the company should used must be flexible and the company must be open in changing their strategies so that they will have continuous competitive advantage over their competitors. In the case study there are three growth options facing Non Stop Yachts in 2003. Discuss and compare the pros and cons of each option and make a recommendation of which option to choose for the future. Analysis on the Three Growth Options for Non Stop Yacht S. I. There are three options facing Non Stop Yacht in 2003, they are : (1) Signing an agreement with Palmer Johnson or National Marine; (2) Growth through repair and refit yards and dealing direct to Yachts; (3) Organic growth through opening multiple locations The first growth option is signing an agreement with either Palmer Johnson or National Marine will make Non Stop Yacht their European arm this will give the NSY an immediate increase in their sales by $3 million with potential growth of 50 percent in second year, 30 percent in third year and 10 percent growth per subsequent year. But this option will make Non Stop Yacht a third party and they will have to stop dealing direct with crew members, captains or owners of mega yachts. The second growth option is the growth through repair and refit yards and dealing direct to yachts. This will give the Non Stop Yacht a sale of more than two million in three years with growth rate of 15 percent for each subsequent year. But when NSY choose this option they will have to give up dealing directly with yacht crews and owners to avoid conflict of interest. There is also a possibility that they lose their company identity in the eyes of the end user if they depend on the repair and refit yards. The third growth option is the organic growth through opening multiple locations. With this option the company will have a good exposure and would generate more walk in traffics for the company. More small offices of Non-Stop Yacht in each port where sales happen will possibly generate more sales for them. This will also make yacht crews familiar with the company. However, this option has smaller sales but it will make the foundation and credibility of the company firmer. The first option is a very tempting growth option because it will give a large increase in sales. It is a good opportunity for growth in Non-Stop Yacht because it will generate them large sales. They can grab this opportunity to make their company stronger and popular not only in the European market but also to the US market. With the large market that Palmer Johnson or National Marine have, they can established a good reputation that they can use in the future when their agreement with Palmer Johnson or National Marine expires. There is a possibility that they will lose their own identity as a company. Yes it is good thing at first because of the big sales that they can get by merging with this company, but there might come a time, when these two company get familiarize with the European market, might terminate their alliance with Non Stop Yacht leaving the company â€Å"a company with no identity†. If this happened, NSY must go back to square one where they have to establish a name for their company in the mega-yacht industry.