November 27, 2017 at 11:13 AM -The Idea is storing boats and using those boats f
ID: 371120 • Letter: N
Question
November 27, 2017 at 11:13 AM -The Idea is storing boats and using those boats for cruising services with sharing benefits with boat onwers in certain percentage So we should these questions about storing boats Q1) Trends affecting the industry in Kuwait? (What is going? where do you think its moving towards?...etc) Q2) Porter's 5 forces analysis? (tool to evaluate the industry and to decide on your entry strategy-cost leadership. differentiation strategy. focus strategy.) Q3) a brief overview of competitors. Q4) a brief overview of customer.Explanation / Answer
Q1:) Ocean freight is one of the major mode of shipping cargo in Kuwait. Thus the boat business and service still have opportunities in Kuwait. Most of the surrounding countries like Saudi and Iran can also use the service of Kuwait cargo boats. The boats can be used as a passenger cruise service as it attracts more tourists to the place.
Q2: Porters Five force model
Bargaining power of suppliers: For cruising and cargo business there are so many small but crucial suppliers involved for providing facilities. But suppliers for this business has wide network so that there will be less bargaining power for suppliers
Bargaining power of buyers: Buyers have significant role in this business. The bargaining power of buyers depends on seasonal variation and how they utilise the cruise. In peak season for tourism they have less bargaining power.Coming to cargo side Kuwait is close to Saudi and Iran ports and bargaining power of buyers to chose the port is crucial.
Industry rivalry: There are not many competition from the competitor side and the company will be having a first mover advnatage on cruise business or service.
Threat of new entrants: Entry to kuwait market is not that flexible like other Middle east countries. Thus this gives an advantage for the business because of less threat of such entrants .
Competitors: Costa Cruise and Royal Carribean are the two major competitors and they have wide network across Middle East as well as other countries such as Bahrain, Saudi.
Overview of customer: Customers for cruise mostly belongs to tourist, corporates and for other events . The database of customer again falls on the category of elite group as the cost of cruising is very high.
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