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Silver Ships Essay

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Silver Ships went from a very profitable company in 2006 to a recovering company in 2009. As the above data shows, Silver Ships took a hard hit in the economic downturn. As it can be seen, their Debt-to-Equity increased dramatically from 0.1 to 0.59. This has affected the amount of disposable that Silver Ships has to spend. With the new opportunities becoming available, this could prove to become a hindrance for Silver Ships investments. However, there are signs of recovery. Their COGS reached its peak and is now on a decline. Other good signs are their Gross, Operating and Net Profit Margins are all recovering and the outlook for Silver Ships looks promising. Competitive Advantage When looking at Silver Ships, there are a few advantages that Silver Ships …show more content…

The first factor, which Silver Ships has always strived to do, is to have high quality and high performance boats. In order to have such boats, the employees must be highly skilled, motivated and knowledgeable staff that is well paid, and able to produce products at a sufficient level; this is another key success factor. During the making of these boats, the aluminum that is purchases must also be used efficiently. Being able to balance the variable costs will be important to maintaining relatively low costs to create the products, but also to make sure that they are still produced efficiently as well. These productions will have to have advanced technology and being able to differentiate the products from other competitors. This leads into the buyer’s decisions to pick certain companies. Reputation is everything, and when the bids are written up, governmental entities may give certain requirements to give favors to one manufacture over another. All of these key success factors play a role in whether or not Silver Ships can survive in the aluminum boatbuilding

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