The first key element of Silver Ship’s strategy is multiple growth opportunities. R&D, technology, and product design are also key elements of Silver Ship’s strategy. McCarty adhered to the highest possible quality and performance standards and made taking care of his employees a high priority. The generic strategy that Silver Ships is using is planned proactive moves to attract customers and out compete rivals via improved product design, better features, higher quality, wider selection, lower prices, etc.
2. Explain the competitive pressures facing the aluminum military and workboat industry. What can a …show more content…
McCarty should consider the following issues: * The economic downturn and its affect on the future growth of Silver Ships. The analysis of Silver Ships' financial statements shows a steadily decreasing ratio which is very near going under the 2.0 minimum for good performance. Also, its net profit margin was decreasing and although it increased the last year it is too varied. Return on Equity has not recently hit the 12%-15% good range. The recession is lowering demand from both Silver Ships customer groups: commercial customers and government entities.
* Competitors like Willard Marine have better distribution channels because they have multiple plants or are in locations with better transportation routes. Silver Ships is at a disadvantage because of transportation costs and limitations related to road-lane width and bridge and overpass height.
* Other competitor's like Northrop Grumman have more resources and capabilities because of their wealth and size.
* Aluminum price is unstable and has varied from $0.65/lb in 2003 to $1.40/lb in 2008, making materials and thus cost of goods sold to be expensive at times and uncomparable over some years.
Of these, the downturn of the economy should be on McCarty's front burner. He has