Cases

Identifying the Key Services to Offer in Order to Enter the Global Shipping Industry

Background and Challenge

The top management aspired to enter the global markets and leverage India’s low cost advantage as well as tide over the bleak Indian shipping industry. The client requested UC to identify the following details:

  • Key services to be provided in the ship management industry from the range of available options
  • Target segments to be tapped
  • Key locations where ship management services could be provided

Approach and Recommendations

To identify the key services to be offered, UC adopted the following approach:

  • Formed a pre-defined hypothesis to evaluate services, target segments and key geographical locations · Conducted an in depth analysis of the following aspects -

    1) Identified the Indian market potential for ship management

    2) India’s advantage as a ship management center

    3) Potential of the global market for ship management

    4) Identified the need for the organisation to move to global markets to understand the internal capabilities of the organisation

  • The key services, target segments and key geographical locations to be offered were evaluated on the following parameters -

    1) Potential and margins of ship management services

    Technical management

    Crew management

    Commercial management

    Other services

     

    2) Segmentation of the customers based on the type of ship owners

    Growth drivers

    Future potential

    Buyer values

     

    3) Target countries

    Fleet of target countries

    Growth of the shipping industry

    Competition from other ship managers at these locations

    Legislation

     

Results

The client received a detailed identification of the key services, target segments and key geographical locations of the global shipping industry.