Silver Ship Essay

886 Words4 Pages
Silver Ships case study Five Force analysis: Suppliers: There are a high number of suppliers which can provide the same product. Because the materials used to manufacture workboats and aluminum military are easy to find. The only differences in within the suppliers are basically the price and fast delivery. It is because of these reasons, this particular competitive force weak. Threat of Entry: is a favorable force for Silver Ship because the high entry barriers, the brand loyalty, and to possess advanced technology on the product is almost required. Theses few reasons close doors to many competitors that want to enter in this industry and if they decided to enter it would put them in a disadvantage in compare to the regular companies which…show more content…
Another advantage for Silver Ship is the custom-built for each boat. A disadvantage not only for Silver ship but for every company in the industry is that there are just a few buyers so it is hard to gain a lot of market share. Buyer: It may be the strongest competitive force for Silver ship, because the product has to be custom-built for each boat so if the company does not meet the expectations, requirements or needs of the buyers, they can go to other company that would. The low switching cost in the industry allows buyers to contract a different company if they do not agree with the prices, delivery dates or the quality and performance of the product. The high number of suppliers and the low number of buyers on the industry make the competition really high and the switching cost to be low. The customers are really price sensitive; also they worried about the quality and performance of the product. These make the rivalry to be high, so few numbers of buyers make hard to increased and gain a lot of market share, and makes hard to create a brand loyalty clients. The high government regulations created a kind of barriers for new entrants so these is a positive aspect for Silver Ships, even though if a company entered in the industry would be really hard for them to perform well in the
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