Gulf Marine Services Swot Analysis

SWOT Analysis: Gulf Marine Services (GMS)

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Table of content

Sr no Name Page

1 Company Background 3

2 SWOT Analysis 4

3 Conclusion 6

4 Recommendations 6

5 References 7

BACKGROUND OF THE COMPANY

Gulf Marine Services (GMS)

Founded in 1977, in Abu Dhabi, UAE, the self-propelled, self-elevating accommodation jack up barges provider is the world’s largest such service provider. The company, with its assets and operations in the Middle East as well as South East Asia, Europe and West Africa, has been delivering a wide array of services that cover the complete lifecycle of gas, offshore oil, and renewable energy requirements.

Abu Dhabi is the centre of its activities where GMS, not only constructs its vessels but

SWOT ANALYSIS:

Strength

1. Being in the Middle East, it has the advantage of cheap labour as well as it boasts of a skilled work force. Cheap labour reflects directly on the balance sheet which means it can reduce cost and get ahead in the competition.

2. At present, it is led by a consortium which gives it financial stability which it can use to expand. The consortium also gives diversity in business decision making. More people on board will bring more ideas and ways to execute it, so that company gets going in the true sense of being a global player.

3. Listed at London Stock Exchange and presence in the UK gives us a better chance to be ahead in competition from Middle East companies. It can increase number of equipments and machinery in its fleet to fill the need of greater demand in future.

4. It has an excellent distribution and delivery mechanism. This gives the company a clear advantage over those which lag behind and get bad ratings from clients for missing deadlines, or lazy delivery of services.

It has some good competition which results in limiting profit margin due to competitive price strategy.

3. Lack of cash flow Conclusion:

GMS, at present seems to be doing just fine. With its presence in its local area, Abu Dhabi and Saudi Arabia as well as in Europe, West Africa, South East Asia, the company has come at a good place. In its annual report for 2014, the CEO sounded optimistic as the entry in to LSE raised US$ 111 million.

The company, as it should amid competition, is going from strength to strength and has been trying to expand its fleet and operation with proper planning and strategy aimed at maintaining a strong balance sheet and focussed on getting good revenue from its product and services. It should give more focus to renewable energy sector which every country is advocating.

Diversification as well as exploring newer markets should be the focus for the company which has enough capital till 2016. It needs to raise funds and tap the opportunities in the renewable energy sector in the developing nations, primarily in Africa and India. The Middle East doesn’t suffer from an energy crisis, however the African nation 's whose economy is in the rise need oil, gas as well as the non-conventional energy