Advanced Risk Analysis:
Strategic evaluation of Shipping Agency
(July 2001)
Contents:
Page
Industry Background 1
The Industry 1
Resource Capabilities 2
New product, new market,
new game 3
Implementation 4
Conclusion 5
Appendices:
Industry A.D.Little
Life-Cycle Stages Appendix
1
Industry SPACE Appendix
2
Industry environment
matrix Appendix
3
Industry hierarchy of
capabilities Appendix
4
Strategic Gameboard Appendix
5
Support Services industry
SPACE Appendix 6
The Shipping Agency business is in the ageing stage of the life-cycle and a stalemate environment. It faces a trend of forward and backward integration by its principals, the shipping lines and ship owners, and it’s customers, the cargo owners and freight forwarders. All participants use the same business system and similar strategies. The trend is for shipping agencies to adopt a market-focused strategy and join the fray by stretching outside of their areas of core competence along the value chain, to meet their principals and customers coming towards them. I propose that the agent should analyse the reason for his success in the first place. Undertake a resource and capability analysis, then look to replicate these competencies within another industry altogether. By taking a competence focused strategy rather than market focused, the agent will remain within his areas of expertise and leave a declining industry. The agent will adopt a selective new-game strategy leading him into the support services arena and a market of double-digit revenue and EBITDA growth.
Further information, business plan, strategy and implementation plan, available from; paul@paulbrianblack.com