Silver Ships Case Study Essay

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April 22, 2011 Esteemed GBA490 Students Your Benevolent Professors 4-Hour Case

As a new hire of Silver Ships, you have been asked to prepare an industry and company analysis for Mr. Mike McCarty, owner of Silver Ships. Your report should also provide specific recommendations with brilliant justifications based on your industry and competitive analysis.

Rev. Confirming Pages g

Silver Ships’ Strategy in the Military and Workboat Industry


David L. Turnipseed
University of South Alabama s Mike McCarty walked through the Silver Ships shipyard monitoring the production of several aluminum hull boats in various stages of production, he began to think “What now?” He had seen his
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However, shortly after McCarty completed of his new fishing boat, states along the Gulf of Mexico banned purse seining. McCarty’s career seemed over. However, the end of his fishing career led to the development of his third career. Other fishermen who had seen McCarty’s purse seining boat and had been impressed with its fine construction approached him to build strong, highperformance vessels to fit their unique needs. The demand for his boats continued to increase and, in 1985, McCarty founded Silver Ships, named after the color of the aluminum used in the boats’ construction. The company progressively outgrew three different rental locations and, in 1996, moved to its present Theodore, Alabama, location. McCarty renamed his obsolete purse seining

boat Run Aground and used it for the sign for his new facility. A summary of company milestones is presented in Exhibit 4.

Ambar Marine Inc., a New Orleans–based shipbuilder producing aluminum boats, began searching in the late 1980s for a subcontractor to build its “survival of life at sea” (SOLAS) boat, a rescue boat for ships and oil platforms. Ambar approached McCarty at a New Orleans workboat show and proposed that Silver Ships build boats for it. After a visit from the Ambar executives to Silver Ships’ original, humble facility, Ambar decided that McCarty’s facility was not what they wanted to show their customers. Several
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