“What are current
competitive advantages of Larvik Port for passengers transport to Denmark?”
Author: Robert Sanga
Color Line AS is the main operator of transporting passengers from
Larvik port to Hirtshals, Denmark (about Larvik port, 2017). It is a medium of
interconnectivity between Norway and Denmark which can be further use as
transit points of travel to rest of the world. The official website of Color
Line AS explained that Color Line represents more than one hundred years of
continuous line of traffic between Norway and Europe. However, it was the
merger in 1990 of Jahre Line and Norway Line which led to the creation of Color
Line AS.
The website of the company further introduce that after a strategic
reorganization in 2008, company deploys a total of six ships on four routes
linking seven ports in four countries: Norway, Sweden, Denmark and Germany.
This strategic analysis will have overview of the company operations between
the port of Larvik, Norway and Hirtshals, Denmark. It will narrow down to the
important roles that the company plays for their customers.
According to Rothaermel (2017) identifying the vision, mission and
values of a firm is important step in strategic management process. Color Line
AS has stated the company’s vision in their official website “to be the best
cruise and transport company in Europe.” This vision statement of the company highlight
it ultimate missions of transporting both passengers and goods to Scandinavia
and Europe.
One can learn more about the ethical value of the company by how they
strategically manage to transport passengers and integrated it operations in
delivering, warehousing and handling cargos and providing the need of their
customer such as conference, hotel management, restaurants, retailing, and
entertainment as well. This analysis will try to provide overview of not only
the external environment of the company but also how they provide all these
services at the right places, times and right cost to their customers. In
addition to external and internal analysis, the description of the company,
short summary of the main finding along with conclusion and recommendation for
further study will be provided.
The research question for this strategy analysis is “What are current
competitive advantages of Larvik Port for passengers transport to
Denmark?” There are several other ferries and cargos operators from
Larvik port to the rest of the world. However, this strategic analysis will
specifically address competitive advantages of Color Line AS in transporting
passengers to Hirtshals, Denmark as they are in charge of all operations at
Larvik Port ferry terminal.
To answer the research question, Frankt T. Rothaermel (Strategic
Management, 2017) and Michael E. Porter (Competitive Strategy, 1980) model of
techniques for analyzing industrial and competitors and other relevance
references will be used. The external and internal analysis along with
SWOT analysis with reference to Porter (1985) will be taken diligently. In
addition, lecture notes from lecturer Jon Fossen-Thaugland (Strategy
Management, 2017) will be used as to have a better overview of competitive
advantages of Color Line AS. The relevance theories will be highlighted in
analyzing each section of the contents of this paper.
Lecturer Jon (2017) explained that PESTEL model of Rothaermel (2017) is
important to use in analyzing the external environment of a firm. This can be
used as a tool by leadership of a firm in mitigating threats and leverage
opportunities. This literally means having good strategic plans in avoiding any
threats a firm may encounter and taking any good opportunities in expanding and
innovating the firm for future business opportunities.
The external analysis, focus on the macro environment, will eventually
pave the way for competitive advantages of a firm in providing better services
to their customers. This analysis will use PESTEL framework as to have a closer
look at the Political, Economical, Sociocultural, Technological, Ecological and
Legal factors affecting shipping business as shown in table below.
|
Political
|
|
Economic
|
|
Sociocultural
|
|
Technological
|
|
Ecological
|
|
Legal
|
|
|
Trade (de) regulations and litigations
|
3
|
The economic growth rate
|
3
|
Social stability in ship operating countries
|
2
|
Speed and capacity of the ships
|
3
|
Fuel and air pollution control system
|
3
|
New laws and regulations
|
3
|
|
State monopoly
|
2
|
Levels of employment
|
3
|
Socioeconomic class
|
2
|
Use of innovative technology
|
2
|
Natural environment
|
2
|
Court decision
|
2
|
|
Interest group and lobbying
|
1
|
Price stability
|
3
|
Population characteristics: age, gender, nationalities, religion
|
3
|
Innovation in maritime technology
|
2
|
Global warming
|
2
|
Industrial regulations and tax policy
|
3
|
|
Public relation
|
2
|
Currency exchange rate
|
2
|
Sociocultural bounds of countries
|
2
|
Communication technology
|
2
|
Sustainable economic
|
2
|
|
|
Table (1) PESTEL grading
explanation 3 is most important and 1 less important
Political
factor: Lecturer Jon (2017) explained that
political factors are processes and actions of government bodies. Firms can
shape this factor through: lobbying, public relations, contributions and
litigation.
Norway is one of Scandinavian countries and a member state of European
Free Trade Association (EFTA). According to EFTA official website, “EFTA is the
intergovernmental organization of Iceland, Liechtenstein, Norway and
Switzerland, set up for the promotion of free trade and economic cooperation
between its members, within Europe and globally.” This trade alliance which is
a result of political factor contributes the economic growth within these
regions and globally. It’s in fact, a landmark alliance for shipping
companies.
As a part of political factors, public relations with shipping companies
play important roles. The maritime industries have to maintain good
relationship with the publics as to generate more income and provide
transparency of their business.
Economical factor: It’s largely related to
macro-economic level said lecturer Jon (2017) with reference to Rothaermel
(2017). He has pointed out some examples of growth rates, levels of employment,
interest rates, price stability and currency exchange rates as well. This indicates the economic growth rates in general
which further contributes for opportunities and threats for shipping companies
around the world. After all, shipping companies are depending on the economic
growth rates of the countries in which they are providing services.
Sociocultural factors: Lecturer
Jon (2017) explained that it’s all about society’s cultures, norms, and values.
They are constantly in flux and differ across groups. In accordance with
demographic trends it can present opportunities and threats to a firm. A
business analysis can group population characteristics related to age, gender,
family size, ethnicity, sexual orientation, religion and socioeconomic class.
Sociocultural bound between communities, societies and countries are important
for shipping business. It is these factors that contribute for the growth of
passenger and cargos transport between port to port and even at the
international level.
Technological factor: Lecturer Jon (2017)
lecture presentation stated that it’s related to application of knowledge with
regards to create new processes and products. Innovation in both process and
product technology are very important in this competitive world. The same is
applies to maritime technology. There are very high competition among ports and
shipping companies when it comes to technology.
Almost every firm tries to develop new technology in order to have
competitive advantages. The same apply to the ports as well. Several ports around the world had been expanded,
developed and renovated to meet customers need. This will in turn gives the
port better competitive advantages and be in a position to accommodate more
ships in an environmental friendly manner. Some modern ports have not only have
the capacity to refuel different kind of fuels to the ships but also modified
to provide electricity on board. This reduced the fuel consumption of the ships
while in port and thereby creates a better environment.
Ecological factor: It’s mainly related to environmental
issues. Lecturer Jon (2016) explained that this factor can provide business
opportunities as it relates to natural environment, global warming, and
sustainable economic growth. This means that those who are good at innovations
will certainly create better environmental friendly products and services than
their competitors. This in turn will give them better business opportunities.
Port authorities around the world concern about the environmental impact
of vessels. That’s the reason why they have high focus on green technology.
Never the less, the cost of innovating and developing environmental friendly
ports and vessels are expensive issues.
Legal factor: The legal factor basically implies the
official outcomes of political processes. The people representatives make laws
in the parliament and when it becomes law, the court takes responsibility over
how it’s practice and follow up in real life. The maritime laws play a crucial
role when it comes to registration of the ships, flag of the ships, sale and
purchase of ships, prevention of pollution from the ships, the taxation system
and so on. These laws are to protect and prevent from any wrong doing by
maritime sectors and their stakeholders. They can also act as preventive
measurements from accidents, air and sea pollutions.
Key drivers of change
The above PESTEL analysis has shown the external environment of maritime
industries at the macroeconomic level. The main key drivers of change in term
of political factor are trade regulations and litigations because they can
change the trading pattern which can further have effect on economy. Countries
affected by economic sanction can no longer trade freely. The economic factor
is also crucial for maritime business. If there is low economic growth rate,
low level of employment and price instabilities then it will be difficult to do
business. In term of socioeconomic factor population characteristics is
important. Umar Burki (Supply Chain Management, 2016) had rightly pointed out
that logistics go to the major population where the demand for transport is
great. In term of technological factor, speed and capacity of the ships decide
the transport time and the volume of the cargos. The ship having high speed and
big capacity will be the winner in this very competitive maritime industry.
Fuel consumption especially use of clean fuel and air pollution control system
are the driving factor in term of ecology. When it comes to legal factor, new
laws and regulations along with tax policy are key drivers. Maritime industries
have to follow both national and international maritime laws.
Main opportunity and threats
The political, economic, sociocultural, technological, ecological and
legal factors can contribute opportunities and threats for maritime industries
and to the ports as well. Trade agreements between nations and continents,
economic growth rate, price stability, population level around the world as
well as regulation on air pollution and governmental taxation policy can give
good trading opportunities. At the same time, political instability, terrorism,
pirates, cybercrimes, bad weather, accidents, ship machine break down, unstable
markets and even the new players coming up can be regarded as threats to
maritime industries.
It’s important to note that by having good external analysis one can prevent
certain threats and take up the opportunities that the industry may have at
present and for future.
Rothaermel (2017) model of PESTEL tool deals with external analysis of a
firm. The above analysis of maritime industries gives some overview to the
question of external environment. All the points need to be considered in
strategic planning. Those plans need to be applied and act upon by shipping
companies and the port authorities in order to have a better performance and
have insight view of any threats and opportunities they may encounter in the
future time to come.
Michael E. Porter (Competitive Strategy, 1980) has developed five forces
in determining competitive strategy and attractiveness of the market. This
assignment will use his well-known five forces model: 1) Threat of New
Entrants, 2) Bargaining Power of Buyers, 3) Threat of Substitute Products or
Service, 4) Bargaining Power of Suppliers and 5) Rivalry among Existing
Competitors. This assignment will have a closer look at each one of them as
follow:
1) Threat of New Entrants
Porter (1980) identified threat of new entrants as the risk that
potential competitors entering an industry. This risk can be high when there is
a low level entry barrier. These barriers can be capital requirements,
government policy, customer loyalty, availability of products and services. The
barriers differ from company to companies. And when these entry barriers are
high, threat of new entrant is low. Though there is relatively high
barrier of entrants, the maritime industry is a very competitive industry. This
means the industry is competing among the existing operators and to the new
comers as well.
2) Bargaining Power of Buyers
Supplier of cargos, traders, passengers and consumers can be regarded as
buyers of the products and services from the shipping companies. Their
bargaining power is limited but due to competitive nature of the industries,
the buyers can always choose other shipping lines which provide either a better
service or lower cost. Therefore, the bargaining power of buyers is relatively
low.
3) Threat of Substitute Products or Service
Lecturer Jon (2017) explained that products or a service outside an
industry meeting the needs of current customers is known as threat of
substitute. When it comes to intercontinental transport in a large quantity,
threat of substitute is low in maritime industry. That’s because seaway is the
only solution as it provide cheaper cargo rates and better interconnectivity
than any other medium of transport. As a result of this, the threat of
substitute products or service is low.
4) Bargaining Power of Suppliers
Porter (Competitive Advantage: Creating and Sustaining Superior
Performance, 1985) explained that “Suppliers can exert bargaining power over
participants in an industry by threatening to raise prices or reduce the
quality of purchase goods and services.” It’s true with regards to supply of
products and services.
There are many ferry operators, cruise ships, cargos ships, tanker ships
and shipping companies around the world. They can be regarded as supplier of
different services to their customers. Bargaining power of suppliers is
relatively high for seaway transport operating in a particular region. It’s
they are specialize and can have monopoly in certain areas.
5) Rivalry among Existing Competitors
Competition between different shipping industries in Scandinavian,
across Europe and around the world is very high especially when it comes to
passengers and cargos transport. That’s because it’s lucrative business. It
involves with all the major stakeholders of shipping industry. Because of
government regulations, it’s not easy to organize a big shipping pool in
certain countries. This increases healthy competition among the shipping
companies.
From the above Porters Five Forces analysis, one can easily identify the
main key forces impacting profit potential. Bargaining power of buyers can be
high if a shipping line provide bad quality services and take longer time in
transporting products. Their customers can then buy or switch their loyalty
toward other operators. Threat of substitute is low shipping companies provide
the best solution for large volume cargos covering long distant. However, it’s
important to note that competition among shipping companies is high. At the
same time bargaining power of supplier can be high because of high volume of
transport requirement in certain countries. The shipping companies need to pay
attention to their rivalry in order to have superior performance over their
competitors. By doing so, they will certainly increase their profit potential.
The issue is that this requires large amount of investment in term of
innovation, technology and to have high speed with larger capacity ship.
The world is
interconnected by different medium of transport. Shipping play a very important
role for this as over 80% of world cargos are transported by ships (Cathrine
Bjune, Ship Operation, Autumn 2016). Therefore, maritime industry has a
unique position. However, it’s important for the company to maintain quality
control with regards to their products and services. Bad weather, accidents and
technical failure of ships are some of the threats that shipping companies have
to consider in their operations. In addition, rivalry among the shipping
companies, economic growth, pattern of trades and their customer royalty can
affect their daily operation.
Porters (1985) Five Forces model deals with external environment of a
firm. It’s similar to Rothaermel (2017) PESTEL analysis. The difference is
that Porters model takes deeper analysis to products and services of a firm.
Combination of these two models give a good overview of any firm,
including maritime sector in answering how to improve, when to take action, how
to do it and why it’s important to make such measures to have good competitive
advantages over their main competitors.
Lecturer Jon (2017) noted precisely that internal analysis is all about
the core competencies of a firm. It is, in fact, a unique strengths of a firm
embedded deep within a firm. It’s a way for a firm to differentiate its
products and services from their rivals. As a result of which a firm can create
higher value or offer products and services at lower cost to their customer.
However, these two concepts are difficult to combine even though there are some
ways to do it. A firm has to either give value for their products or lower the
cost of products.
Basically, VRIO model of Barney (1991) deals with internal factor of a
firm. According to the journal he wrote published by Texas A & M
University, “Firm Resources and Sustained Competitive Advantage” VRIO literally
stand for a) Valuable, b) Rare, c) Costly to Imitate, and d) Organized to
capture value. Lecturer Jon (2017) in his class further explained that these
can be group into tangible and intangible of a firm resource. The following table
(2) will have a closer look at some of Color Line AS resources in term of
tangible and intangible.
Table (2) Color
Line AS Resources
|
Tangible
|
Intangible
|
|
Human resources
|
Culture
|
|
Deploy total six ships
|
Knowledge
|
|
Finance capital
|
Brand equity
|
|
Equipment’s
|
Reputation
|
Lecturer Jon (2017) further explained that tangible resource has
physical attributes and intangible resource are invisible and has no physical
attributes as shown in the table (2). All these resources can be further break
down, for example human resources into gender, level of education, work
experience and so on. The internal resources of Color Line AS in accordance
with VRIO analysis is shown in table (3).
|
Resources
|
Valuable
|
Rare
|
Costly to imitate
|
Organized to capture value
|
Competitive advantage
|
|
Tangible
|
|
|
|
|
|
|
Financial resources
|
Yes
|
Yes
|
Yes
|
Yes
|
Sustainable competitive
|
|
Physical capital
|
Yes
|
No
|
Yes
|
Yes
|
Competitive parity
|
|
Organizational
|
Yes
|
No
|
Yes
|
Yes
|
Competitive parity
|
|
Intangible resources
|
|
|
|
|
|
|
Human Resources
|
Yes
|
No
|
Yes
|
Yes
|
Competitive parity
|
|
Network capital
|
Yes
|
No
|
No
|
Yes
|
Competitive parity
|
|
Reputation
|
Yes
|
Yes
|
No
|
Yes
|
Competitive parity
|
Table (3) VRIO Analysis
a) Valuable because Color Line passenger transports ferry which operates from
Larvik to Hirtshals was built in 2007 at
Aker Yards, Turku Finland and registered in Norway. The ship has maximum
service speed at 27 knots and 33500 Gross Register Tons (GRT). It has total 11
decks and can carry 1929 passenger and 764 cars. The ferry has great potential
of making money for future time to come which will eventually increase profits.
b) The ferry is rare because it’s not that kind of ferry that every shipping
company in Norway owns. To have such ferry, it requires innovation;
qualify human resources, capabilities and a huge capital investment. In fact,
Color Line at Larvik has a unique structure and a high speed.
c) Color Line ferry at Larvik is costly to imitate. Fjord Line has ferry
similar to Color Line which operates from Kristiansand to Hirtshals. However,
it has different structure and design. It will not be possible for Color Line
to sale their unique ferry for imitation.
d) Color Line organized it ferry to capture value because it has a good
coordinating system between commercial line and technical line. Those who are
employed in commercial line and technical line work hand in hand and support
each other as a team. However, it’s possible to imitate it company
organizational structure in capturing value.
e) Color Line at Larvik has sustainable competitive advantages toward their
main competitors Fjord Line and Stena Line. It’s because the ferry has a
distinct characteristics in term of tangible and intangible resources as shown
in table (2) & (3).
Color Line has a rich historical background of operating ferry to
Scandinavian region. According to their official website “Color Line’s parent
company, Color Group ASA (formerly Color Line ASA), was established in 1990.
However, our roots in the ferry business go back over 100 years.” This means
the company has a lot of experiences in providing ferry services to their
customers, especially for those who are living in Norway, Denmark, Sweden and
Germany. Therefore, it safe to say they have core competencies in handling
passengers, providing services and sale different kind of products to their
customers at the right time, right place and relatively cheaper cost. They even
provide free tickets and sale duty free products for 30% discount to their loyal
membership card holder. Moreover, they know their customers need and have
capability of recruiting new royal customers.
The ferry between Larvik and Hirtshals has a unique position in term of
location, speed, good timing of departure and arrival. Passenger can takes the
ferry departing from Larvik port at 08:00 AM and arrives at 11:45 AM, Hirtshals
port or the other route which departs at 17:30 and arrives Hirtshals at 21:15.
And then return to Larvik from Hirtshals either at 12:45 PM which arrives 16:30
PM or depart at 22:15 PM which arrives Larvik at 02:00 AM. Their customers have
options to enjoy just a day tour or holidays trip to Denmark. They even have
integrated system with hotels, restaurants, recreational parks both in Norway
and Denmark for those passengers who like to stay a little longer. Their
customers can buy delicious foods on board and overnighting places including
foods at their desire destinations in advance. This can be quickly done as the
same time as they buy their ferry tickets.
They give a high level of discount to their loyal customers. These
discounts come as additional discounts to duty free products. It’s possible to
earn bonus points through their membership. Color Line has direct contact to
their customer through e-mail. They use this to send advertisements and
seasonal discount products. They provide entertainment for kids on board.
Captain kid and his associates on board are attractive for children traveling
along with their parents or guardians.
Color Line ferry at Larvik itself is one of their strengths. Like
mentioned earlier it’s valuable, rare, hard to imitate and well organized.
Unlike any stores on land, Color Line can provide duty free products to their
customers. In addition, the ferry tickets are much cheaper and even free for
some customers who obtain discount coupon offer on board. They give such free
tickets offer to their customer who bought duty free products for more than NOK
800,-.
According to Statistikk Sentralbyrå (SSB, 2016), population of Vestfold County
was 247055 as per January, 2016. This consists of Norwegian, immigrants,
refugees, children, youth, men and women of all ages. Population number of
young men and women is relatively high in Vestfold. It’s a good sign for
maritime business especially with regards to passenger transport.
The employees are well organized within the company and outside the company as
well. They have well connection to labor organizations beside their own
company. This means they all get their monthly salary in time, health
insurances and bonuses. These are good for the employees but it will not be
easy for the company manage in time of economic crisis.
The Super Speed 2 ferry is a big investment and their investment is actually
one of their strengths and weaknesses. It’s their strength because the return
on their investment is good and at the same time weakness because the exit
barrier is very high.
By using VRIO model of Barney (1991), one can identify Color Line main
resources, core competencies, competitive advantages, main strengths and
weaknesses as mentioned above. They can use these for identifying further
improvement. The most important part is their relation with customers. After
all it’s how they will make money for future time to come.
Michael E. Porter (Competitive Advantage, 1985) had rightly pointed out
that “Competitive advantage of a firm cannot be understood by looking at a firm
as a whole. It stems from the many discrete activities a firm performs in
designing, producing, marketing, delivery, and supporting its product. Each of
these activities can contribute to a firm’s relative cost position and create a
basis for differentiation.”
Lecturer Jon (2017) further explained value chain is internal activities a firm
engages in when transforming inputs into outputs. Each activity adds
incremental value. These activities can be divided into primary activities
which directly add value and support activities which add value indirectly.
Value Chain Analysis table (4)
|
Support
Activities
|
Primary
Activities
|
|
Research and Development
|
Procurement for duty free products
|
|
Human Resources
|
Transport of goods and passengers
|
|
Accounting & finances
|
Marketing
|
|
Procurement of goods
|
Sale of duty free products
|
|
Ship design & technology
|
Integrating with hotels and restaurants
|
As shown in table (4) Value Chain analysis, the primary activities of
Color Line ferry between Larvik and Hirtshals can be identify as procurement
for duty free products, transport those products on board, marketing, sales of
duty free products and ferry tickets and ship operations and integrating with
hotels and restaurants for their passengers. All these activities add value to
the ferry which makes them earn money.
The secondary (support) activities are research and development,
information system, human resources, accounting, finance, ship design and
technology. These activities do not directly makes them earn money but
contribute for profit margin. For instant, because of research and development,
Color Line was able to build their present Super Speed 2 ferry. This in turn
generated profit to the company and contributed a quick and comfortable medium
of transport for their passengers.
From the above already identified primary and secondary activities, the
main activities in the value chain system are procurement, marketing, sales of
products, services and ferry tickets, managing information system, human
resources, accounting and finance. They are equally important and without these
activities, Color Line can have problems in their operating system. For
example, if the procurement department does not do their job well in
combination with warehousing department, then there will be shortage of
products on board. This will lead customer’s dissatisfactions which will
automatically reduce their volume of customers.
Larvik port has well connection with both train and bus system across
Norway. This makes them accessible to buy different duty free products such as
various drinks, meats, clothing’s, electronic goods, and toys for children and
so on. The same apply to the other end of the port which is located at
Hirtshals. A good transport connectivity to their ports is one of their
opportunities. In addition, passengers have easy access to their terminal and
from their ports it’s easy to travel to other part of the country and to the
Scandinavian and Europe as well.
Communication system failure can be identified as one of the biggest
threats in value chain system. For example, if Color Line websites breakdown,
it can lead to reduce sale of tickets which automatically will decrease
customers. The purchasing power of their customers is their strength which can
be weaknesses as well. It’s because they are depending their business on their
customers.
The value chain analysis is important part of Color Line’s ship
operation as mentioned above. It’s about how they take care of their business.
These activities need to innovate, plan and act upon by those who are
responsible for it. By doing so, Color Line will have a better margin of profit
and at the same time contribute to the economic growth of the communities and
societies they serve in the regions.
It was first developed by Albert Humphrey (Stanford University,
1960-1970) by using data from many top companies. Lecturer Jon (2017) explained
that it’s a framework that allows managers to synthesize insights and obtained
from an internal and external analysis to derive strategic implications. Literally
it stands for Strengths, Weaknesses, Opportunities and Threats (SWOT). These
can be further divided into internal and external factors of a firm. Strengths
and weaknesses relate to internal factors and Opportunities and Threats relate
to the external factors of a firm.
Table (5) is SWOT Analysis for Color Line AS.
|
Strength
- Super speed ferry with high capacity
- Over 100 year of ferry services
- Well organized between commercial and technical
- Professional human resource’s
- Strategic location of ports
|
Weakness
- High barriers of exit
- A huge capital investment takes long time to get profit
- Depending on their customers for their business
- Low profit margin compare to long distant cruise ships
- Fuel and products price instabilities can affect it business
|
|
Opportunities
- Large number of passengers to be served
- Good economic growth in Denmark & Norway
- Great potential of increasing profit margin
- Political and socioeconomic stabilities in the regions
|
Threats
- Ship machine break down & accidents
- Bad weather and natural disasters
- New laws and regulations on air pollutions
- New players, cybercrimes, terrorisms and conflicts
|
The above table (5) SWOT analysis, sum up some important points on
internal factors i.e. strengths and weaknesses, external factors with regards
to opportunities and threats for Color Line AS. They should use their core
competencies wisely in strengthening their internal strengths. This will enable
them to work effectively in targeting their customers. More marketing campaign
by using mass communication medium such as Television (TV), Radio, YouTube,
Facebook, Newspaper and through tourism industry will certainly increase their
customers.
Benchmarking of major cruise ships can contribute in strengthening their
market potential which is regarded as external factors. In case of new player
coming up, they will have to consider it as a threat, and eventually find ways
to protect their market share or merge with them if it’s actual. They also
should have preventive measures on terrorisms, cybercrimes, machine breakdown
and accidents. Sick leave and conflicts among employees are one of the internal
weaknesses of a firm. For this reason, regular health check up at the interval
time should be done. Having reserve employees could be a solution to this if
the problem persist.
As mentioned above, the company must have certain measurements to
overcome their weaknesses. This will enable them to be stronger, more trust
worthy in the eyes of their customers which will eventually benefit their
business. They have to not only focus for their own benefit but alos for
contributing something good for a larger public.
My main findings on research question “What are current competitive
advantages of Larvik Port for passengers transport to Denmark?” sum up
competitive advantages of Color Line AS, operating between Larvik and Hirtshals
ports. The company lives up to their vision, mission and value in providing
valuable services to their customers. To maintain their current competitive
position, I would recommend strengthening their internal and external weaknesses
as shown in the above analysis by using different models of strategy analysis.
This will enable them to achieve their own vision “to be the best cruise and
transport company in Europe.”
My assignment covers cover up Color Line AS passenger transport between
Larvik and Hirtshals ports only. More research needs to be done as to know
better about Color Line passenger transport in Scandinavian regions. Base on
this, my suggestion for further study is “What are the current competitive
advantages of Color Line for passenger transport to Scandinavian regions?”
About the Port of
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