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Pacific International Lines

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1. Introduction Pacific International Lines or PIL as it is commonly known in the market is a container shipping company started by Mr.Y C Chang in 1967. What he started as a 1 ship company is today the 19th biggest container shipping company in terms of TEU capacity & the 8th largest container ship owner. Ambition: Integrated shipping group with a meaningful market share by setting own pace of growth based on the group’s financial strength and human resource capabilities. 2. External Analysis: In order to formulate a strategic direction for PIL we need to do an analysis of the external factors affecting PIL’s business. 2.1 External Analysis - PFF Analysis By doing a Porter’s Five Factor analysis (PFF) we come up with the following – a) …show more content…

It is also easy to imitate as proven by MSC which has increased their fleet almost 10 fold in the last decade. b. Staff: PIL employ well qualified staff which gives them a competitive advantage. But this is true of most reputable shipping firms today with the regulatory authorities cracking down on companies employing under qualified sea farers. To an extent this is also becoming a weakness as the scarcity of qualified seafarer’s gives them leverage as far as remuneration goes. c. Management: This includes top management as well as how the company is organized. The top management has a big competitive advantage by the fact that they have years of experience in the shipping field. PIL being a family owned firm, the top management comprises of the senior members in the family who have been exposed to the business from a young age & are very familiar with the industry. This type of know-how cannot be bought in the market or be achieved overnight which gives PIL a definitive competitive advantage. d. Relationship: PIL has a very large & loyal customer base due to the fact that they have been in this business for over 40 years. This advantage cannot be attained very easily nor is it common in the industry. Although there are other shipping companies which are older, in PIL’s niche market, i.e., the Asian container market business, they tower

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