Nonstop Yacht Case Study Essay

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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This strategy aided NSY in achieving first year sales of $200,000, a number consistent with projections outlined within the business model; however, sales in year two stagnated, accounting for only 11% of investor expectations (Mark & Mitchell, 2003, p. 48). Given this troubling reality, management began to evaluate whether the company’s current strategy was best suited to extract maximum value from NSY’s unique concept. In an effort to aid NSY in evaluating the strategic positioning of the company, this project aims to answer one 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 expectations?
Strategic Issues
To effectively answer the central question of this case, three strategic issues must be addressed. First, an evaluation of NSY’s core competencies must be undertaken to determine their relationship in providing the firm with competitive advantages, competitive disadvantages, or competitive parity. The second strategic issue will address whether the firms operations, structure, or culture are a hindrance to realizing its overall strategic vision. And lastly, the industry must be evaluated to determine how the trend of consolidation might affect strategic decision-making.
Strategic Objectives – Firm’s Operations
As Mann (2006) suggests, the basis…

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