Pacific International Lines
Pacific International Lines or PIL as it is commonly known in the market is a container shipping company started by Mr.Y C Chang in 1967. What he started as a 1 ship company is today the 19th biggest container shipping company in terms of TEU capacity & the 8th largest container ship owner.
Ambition: Integrated shipping group with a meaningful market share by setting own pace of growth based on the group’s financial strength and human resource capabilities.
2. External Analysis:
In order to formulate a strategic direction for PIL we need to do an analysis of the external factors affecting PIL’s business.
2.1 External Analysis - PFF Analysis
By doing a Porter’s Five Factor analysis (PFF) we come up with the following –
a) …show more content…
I. New Markets: The known markets like China & Europe are saturated & since the margins of profit in container shipping are very low PIL should look towards new markets for growth.
II. Port & Terminal development: There is tremendous scope for PIL to develop & maintain ports & terminals in the new emerging markets.
III. Venture into established markets: PIL does not have much business in the well established Trans-Pacific or Trans Atlantic routes. These 2 along with the Asia-Europe sector could provide PIL with an opportunity to expand its global reach.
Threats: Some of the threats that PIL could face are-
I. Competition: The container shipping industry is highly competitive dominated by a few very large companies & a few alliances. The major shipping companies control about 90% of the global sea trade.
II. Customer’s high demand: Due to the availability of a large number of choices, customers have a high bargaining power.
3.1 Internal Analysis – VRIO
PIL'S VRIO ANALYSIS
DETAIL VALUABLE RARE NON-IMITABLE ORGANISED IMPLICATION FOR COMPETITION FINANCIAL RESULT
FLEET YES NO NO YES PARITY NORMAL
STAFF YES NO NO -TEMPORARY YES PARITY NORMAL
MANAGEMENT YES YES YES YES SUSTAINABLE ADVANTAGE ABOVE NORMAL
RELATIONSHIP YES YES YES YES SUSTAINABLE ADVANTAGE ABOVE NORMAL
FACILITY YES NO NO YES PARITY