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Pest Analysis On Crowley Maritime Corporation

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Pest Analysis On Crowley Maritime Corporation - December 3rd, 2010

Crowley Maritime Corporation, based in Jacksonville, Florida, and founded in 1892, is primarily a family and employee-owned company that provides transportation and logistics services in U.S. and international markets by means of six operating lines of business: Puerto Rico/Caribbean Liner Services, Latin America Liner Services, Logistics Services, Petroleum and Chemical Transportation, Petroleum Distribution and Contract Services and Technical Services. Offered within these operating lines of business are the following services: liner container shipping, logistics, contract towing and transportation; ship assist and escort; energy support; salvage and emergency response; vessel management; vessel construction and naval architecture; government services, and petroleum and chemical transportation, distribution and sales.

As of June 2010, the company employs approximately 4,500 people worldwide and provides its services using a fleet of more than 300 vessels, consisting of RO-RO vessels, LO-LO vessels, tankers, Articulated Tug-Barges (ATBs), tugs and barges. Crowley's land-based facilities and equipment include terminals, warehouses, tank farms, and specialized vehicles.

Crowley was founded in 1892 when founder Thomas Crowley, the grandfather of current (as of June, 2010) Chairman, President and CEO Thomas B. Crowley, Jr., purchased an 18-foot Whitehall rowboat to provide transportation of personnel and supplies to ships anchored on San Francisco Bay. Within a few years, services broadened to include bay wing and ship assist services. In addition to acquiring larger vessels, the company expanded in the 1920s into Los Angeles Harbor with tugboats for ship assists and into Puget Sound with tug and barge transportation. Bulk petroleum transportation joined the list of company services in 1939.

In 1958, Crowley moved into Arctic transportation with an agreement to resupply the U.S. government’s Distant Early Warning Line on the Alaska coastline. It was the first penetration of the Arctic by commercial tug and barge services. This led to Crowley’s Alaska common carrier services whereby railcar, breakbulk, containerized and bulk petroleum cargoes were delivered to more than 130 villages, many of which lacked docking facilities.

Beginning in 1968, utilizing the earlier pioneering experience in the Arctic, Crowley began summer sealifts of equipment, supplies, buildings and production modules to Prudhoe Bay. Since then, 334 barges carrying nearly 1.3 million tons of cargo have been successfully delivered to the North Slope, including modules the size of ten story buildings and weighing nearly 6,000 tons.

In the 1970s, Crowley began transporting cargo between the U.S. and Puerto Rico and later expanded into the rest of the Caribbean, Central America and South America. The service primarily consisted of ships and large, triple-deck barges, some of which were 730 feet in length, carrying cargo in trailers and containers.

Since the competition of these industries worldwide is very strong, ReignCom utilizes all their resources to enhance the operation of the ReignCom and to be recognized as the leading industry in diamond production. They also tried to include innovative marketing strategy and used technologically advanced equipments to produce quality MP3P products. In addition, it also shows that part of the five forces of the company is product or service differentiation as ReignCom has been able to adapt to the marketing environment because of its strong commitment of providing quality products and services for both of their business operations.

The Value-Chain was conceptualized and popularized by Michael Porter in 1985 through his book, a best-seller, Competitive Advantage: Creating and Sustaining Superior Performance. The primary activities includes the following, inbound logistics, production, outbound logistics, sales and marketing, and maintenance. Support activities include administrative infrastructure management, human resources management, research and development team and procurement (2003). According to (1985) a firm's value chain is embedded in a larger stream of activities that he termed the value system. Suppliers have value chains that create and deliver the purchased inputs used in a firm's chain. Suppliers not only deliver a product but also can influence a firm's performance in many other ways. In addition, many products pass through the value chains of channels (channels value) on their way to the buyer. Channels perform additional activities that affect the buyer, as well as influence the firm's own activities (2003). Simply, the value chain is a model that describes a series of value-adding activities connecting a company's supply side (raw materials, inbound logistics, and production processes) with its demand side (outbound logistics, marketing, and sales). By analyzing the stages of a value chain, managers have been able to redesign their internal and external processes to improve efficiency and effectiveness (1996).

Value chain is a model that helps to analyze specific activities a firm can do to create value and competitive advantage in the marketplace. Since it was originally written for business strategy we will simplify it for IT to make things easier. The essence of the value chain model is every organization benefiting from or contributing to other organizations is a link in a value chain. From this simplistic notion of value chain, every IT organization can be described by three basic functions service-in, service-out and value-add. The combination of digital music and MP3 players fundamentally changes the way consumers listen to music. With more than 300 digital music services worldwide and 40 million MP3 players sold in 2004 alone, this nascent industry is quickly gaining momentum among mainstream consumers. Looking ahead, how soon will sales of MP3 players reach a plateau? Will digital music make the music pie bigger or simply take from CD sales? Will Apple be able to keep its top position as competitors, old and new, start shipping new MP3 devices to the market? The current market landscape for digital music and MP3 players, focusing on trends in music services and hardware as technologies evolves and market dynamics shift regarding ownership and usage of MP3 players as well as consumer attitudes toward music services. Throughout the entire process that precedes the initial contact of the customer with the company, there is a support service in place through its online and toll free contact options. Interested customers are given a variety of options on the components or features that want in a computer. Since computers are custom built the company can assemble a computer for a customers with whatever parts and features the buyer requires. Purchases are also made online or through the toll free number. After receiving the computer, any inquiries or complaints may also be made through these modes or through the service providers in case the query is on the integration of the computer hardware with servicee

Obtaining a competitive advantage entails the company’s application of a business strategy that results to the achievement of a value that exceeds the cost of manufacturing the product. Thus, there is value creating activities that business firms should consider to achieve competitive advantage. ReignCom has considered these value-creating activities in its supply chain management strategies so that it achieved competitive advantage through efficiency in the supply chain processes.

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