TWOS anaylsis for 2 companies - Essay Example

The company’s capital market investment performance gives it more financial capital growth. This can allow Milaha to seek opportunities in non-maritime activities. The company’s standardization will save costs, allowing for better capital availability to diversify services to different industrial segments. Milaha is also introducing new innovations in fleet capability that allows for greater service provision including subsea maintenance and firefighting. With growth in capital produced by a strengthening investment portfolio, the company can seek contracts with major oil companies to provide maintenance to oil rigs.

The corporate governance team is not fully equipped to understand how to structure a new diversified service business. This weakness, however, can be overcome by practicing benchmarking of other companies in these industry sectors that will build a best practice framework throughout the entire value chain. An existing focus on primarily the Maritime & Logistics business also requires changing mindsets of executives to decentralize the business to provide for more effective collaboration. Divestiture of under-performing assets (such as real estate holdings) could improve the cash position of the business.

Standardizing will provide the firm with many cost advantages. Threats of new market entrants that could offer lower pricing will allow Milaha to compete more effectively if price-sensitivity impacts contract procurement. Competitive rivalry is a threat if an emerging competitor becomes a cost leader and economies of scale can be a market barrier if achieved effectively in standardization of processes. New market entrants could make Milaha lose market share. However, the governance board is not familiar with how to develop competitive marketing strategies to build preference for this company’s brand in key pillar divisions.

This threat can be overcome by building a governance committee focused on competitor analyses to