Page 2: Expanding through acquisition
The main way of achieving marine market expansion has been that of acquisition:
taking over other leading players in the field in order to gain competitive advantage.
A competitive strategy is one that enables an organisation to stay ahead of rivals. In the modern world, large organisations compete in global markets. To be successful they have to be the best at what they do and they need to be seen to be the best on a global scale. A company’s strategists need to identify the key characteristics that will make it ‘the best’ in the markets in which it operates.
The faster the growth of a particular market, the greater is the amount of expenditure required in order to maintain position in that market. In a dynamic market, considerable expenditure is required on investment in product lines. Intelligent organisations identify those areas of a market that are experiencing the highest levels of growth and then seek to increase their share of the market in these sectors.
This case study shows how Rolls-Royce has identified key areas of the marine markets on which to focus. Today, marine activity accounts for about 15% of the Rolls-Royce group’s turnover. It has the potential to move to about 30% of the group’s turnover over the next 10 years.