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Strengths, Weaknesses, Opportunities, and Threats Analysis of Mediterranean Shipping Company - Case Study Example

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The paper "Strengths, Weaknesses, Opportunities, and Threats Analysis of Mediterranean Shipping Company" presents the detailed SWOT analysis of the company. It introduces the global brand strategy which is used by the Mediterranean Shipping Company. The author uses the PEST analysis as well…
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Strengths, Weaknesses, Opportunities, and Threats Analysis of Mediterranean Shipping Company
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SWOT Analysis of Mediterranean Shipping Company PEST Analysis of Mediterranean Shipping Company Political The political challenges for the shipping company are insignificant. The company has established its network at places where the law and order situation is positive, and political situation is stable. The company is vulnerable to the political turmoil in the African countries. The sea voyage includes certain African regions, which are exposed to lawlessness and civil disorder. The company therefore finds a mammoth challenge for itself in securing protection of its property and employees. 2. The shipping business includes services from people of diversified background. Such diversification is responsible for internal split among the employees, and in specific cases can be responsible for treason or ambush. The possibility of such occurrence is low, but if occurs it will cause significant business loss. 3. The EU embargo on certain African and Asian countries will affect the number of shipment contracts. The shipping company in some cases has to undo its contract only because of the EU trade legislation. The EU has therefore certainly restricted the opportunities for the shipping company in some locations. Economic 1. The economic challenges have intensified; the ongoing economic turmoil has narrowed the business opportunities for industrialist nations. The cuts in the business plans have dampened the trade volume which subsequently affects the business plans for the shipping company. 2. It is important for the company to undertake expansion plans, and the units of properties shall be increased to offer effective coverage and support to the business customers. Unfortunately, the ongoing economic recession has barred support from the financial institutions. 3. The valuation of Yuan in the international market is challenge for the European and American shipping companies. The Mediterranean Shipping Company has to suffer due to its higher cost of service and employee's remuneration only because the Chinese companies are able to support their employees at extremely low rates; and the industrial units within China offer cheap products which have strengthened the capacity of the Chinese shipping company. Social 1. The company has no social restraint. Technological 1. The company has to promote research and development unit. The shipping technology is magnanimous, and any damage to the shipping parts shall affect the shipment plans for months. The company has to therefore adopt stringent maintenance plans and has to focus upon the procurement of minimum inventory to support the ships on voyage. 2. The shipping company has to invest in the monitoring system for the machines. This shall be heavy investment, but will forecast any mechanical damage to the ship. Any mechanical issue will prompt the shipping crew at early stage, and will assist the employees in the identification of the issue much before it reaches advance level. The failure of the parts can be protected, and this will ensure the integrity of the parts. 3. The shipping company has to invest heavily to make the cargo loading and unloading process foul-proof. This will require technological improvisation. The company should necessarily focus on this area. References 1. Chua, W. F. Radical Developments in Accounting Thought. The Accounting Review. 2003. 2. Zahirul Hoque. Methodological Issues in Accounting Research: Theories and Methods. 2006. Spiramus Press Ltd. 3. Sicco Van Gelder. Global Brand Strategy: Unlocking Brand Potential Across Countries, Cultures. 2003. Kogan Page. N.Y. 4. Jean-Noel Kapferer. The New Strategic Brand Management: Creating and Sustaining Brand Equity. 2004. Kogan Page. N.Y. 5. Kai Yang. Design for Six Sigma for Service. 2005. McGraw-Hill Professional. N.Y. 6. Harald A. Benink. Coping With Financial Fragility and Systemic Risk. 2000. Springer. pp. 86. 7. Krishnamurthy Sriramesh, Dejan Vercic. The Global Public Relations Handbook Theory, Research, and Practice. 2003. Lawrence Erlbaum Associates. pp. 187. 8. Nell Minow, Robert A.G. Corporate Governance. Blackwell Publishing. 2004. pp. 207 9. Sunil Mani, Anthony Bartzokas. Financial Systems, Corporate Investment in Innovation, and Venture Capital. Edward Elgar Publishing. 2004. pp.129 Read More
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