Silver Ships Essay

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Silver Ships In Class Case September 29, 2011 1. Analyzing Silver Ships using Porter’s Five-Forces will be able to bring forward many key aspects and issues that may about the company as a whole. While assessing the bargaining power of suppliers it is stated within the case that, “nearly all manufactures of military and work boats paid about the same prices for engines, lights, seats, deck cleats, radios, and other fittings.” Having a medium bargaining power level is not a main issue for SS but should be watched closely as the demand for the industry increases. Also, stated in the case that the U.S. Navy, Cost Guard, Border Patrol and other law enforcement agencies to place a greater emphasis on littoral patrol, or boats the SS produces. As the demand for these smaller 25-60ft boats increase SS needs to become a driver in the market and industry to remain successful. Analyzing the high bargaining power of buyers this is where SS has stumbled upon to trouble. While having multiple choices and companies to choose from SS needs to set themselves aside in the small aluminum boat industry to saturate the market with their products. Not only delivering quality in their work but a reasonable project completion time as well as a competitive price against other competitors. The U.S. Army is currently looking for a new smaller 25-60ft boat that SS has put in three prototypes for. To complete and seal this massive $58 million dollar contract with the U.S. Army is a necessity for SS to remain a industry driver and remain very successful as a business within the aluminum military and workboat industry. The low threat of new entrants is something that SS shouldn’t be to concerned about. The attractiveness and profit margins for starting a new company in the aluminum military and workboat industry is very low. While having very high start up capital costs as well

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