Shipping Firms Are Dependent on Term Paper

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In the shipping business, this can be speed, customs expediting, or specialized handling, or price. The firm should analyze its internal competencies to identify which ones are strongest before seeking opportunities in the marketplace. Most firms will not be the best at all of these, so the firm should be realistic about its competencies when conducting a self-assessment. Often, core competencies are well-supported so that they can be sustained over the long-run.

There are two main mechanisms for supporting internal competencies. The first is organizational culture. When the culture is oriented towards specific types of achievement, then the culture can become a powerful form of internal control mechanism. If a firm has decided to pursue a specific niche, the organizational culture should therefore be built around the execution of that strategy. This will drive success and innovation towards that strategy above all others and provide internal control.

The other main mechanisms for supporting internal competencies are technology and information systems. These systems can support a number of different strategies, particularly in shipping where tracking goods is critical. The more information management has, the better decisions it can make. Information systems are seldom sources of sustained competitive advantage, but they do assist management in developing core internal competencies to their fullest.

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The process of creating a niche shipping company begins with understanding the firm's internal competencies, and the potential the firm has to become an industry leader at any of those. When the firm understands what it does best, management can scan the external environment for customers whose needs are not being served to their fullest. This can help to identify opportunities that exist in the marketplace. To identify a good niche strategy, the firm should focus on customers that are not subject to the business cycle. This will allow the shipping firm to avoid the business cycle as well. From there, the strategy must be evolved so that it cannot be copied. The best ways to do this in shipping are to have sufficient geographic scope that is difficult to replicate, or to have a lower cost structure -- both of these typically relate to economies of scale. Almost any other competency can be replicated by the competition, so it is important that the competencies the firm pursues are those that specifically relate to the firm's size -- once the firm has established its market position it will be able to sustain its competitive advantages.

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