Nonstop Yacht Case Study

4378 Words Aug 6th, 2013 18 Pages
Executive Summary
This analysis was undertaken in an attempt to evaluate NonStop Yacht’s strategic direction in the Mega-Yacht industry due to the firm’s consistent inability to meet financial expectations. This case focused its efforts on answering. This poor financial performance has led the firm’s management to question whether or not a strategic alliance might be a beneficial alternative to their current business model. To address the firm’s current quandary, this case has answered the following central question: Should NSY strategically align with key industry players; or, would organic growth be a more beneficial option for generating the additional value needed to once again realign the company with both internal and external
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(NSY) had been providing parts and services to the Mega-Yacht Industry since receiving their initial seed capital in 2000. The Mega-Yacht industry provided an attractive opportunity for NSY. Although the industry was small by comparison, serving only 10,000 vessels, it generated in excess of $1 billion in economic activity annually, divvied amongst the new build, and maintenance, refit and repair business sectors (Mark & Mitchell, 2003, p. 48). The industry’s supporting cast included captains and crews, owners, management companies, procurement agents, yacht builders and repair entities, brokers, and local husbanding agents. Although unknown to the firm at its inception, consultants in 2002 forecasted the mega-yacht industry would see annual growth of 6%, with the potential for even better numbers in the short-term (Mark & Mitchell, 2003, p. 48).
The company’s business model and value proposition offered much needed convenience to the chaotic process yacht crews were forced to undertake when procuring the various parts and services necessary to operate vessels of this magnitude. Initially, NSY’s approach was solely an e-commerce solution, where crews could access the catalogues of hundreds of suppliers through the website’s one-stop-shop format. Shortly after launching the company’s website in mid-2001, sales reflected a need for change which led management to adopt a hybrid business model that incorporated a brick and mortar storefront into the mix.…

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