DANAOS CORPORATION SWOT
ANALYSIS

SWOT analysis or else
the strategic tool meaning strength, weakness, opportunities and threats used
by top managers to organize and plan any kind of company. To be more specific,
Danaos Shipping Corporation uses all along the SWOT analysis as a technique to
evaluate the financial year passed, as well as setting new goals. Needless to
say that Danaos as a company is one of the best leading organizations in
shipping, having the preferred place at SWOT, renewing the process and creating
business plans within diversed departments in such company. The obligatory ones
that need to be mentioned are the marketing, finance, operations, management
information systems and strategic planning. SWOT analysis’ context actually
focuses on the internal and external strategic factors. These kinds of factors
are divided into two categories each. Thus, the internal strategic factors have
their strengths and weaknesses, as well as the external strategic ones contain
opportunities and threats. To sum up, the above suggestions have conjured the
SWOT analysis. Its purpose is to combine those four and be the best of all,
alienating all competitors by specific strategies. Danaos shipping company
builds and enhances strengths, resolves and reduces weaknesses, exploits and
expands opportunities and, finally, avoids and thwarts threats.

 

STRENGTHS OF DANAOS CORPORATION-INTERNAL STRATEGIC FACTORS

 

Danaos shipping
corporation varies quite the strengths, which allows it to expand in its and
new markets. Contradictionally, it has shown that over the years it can boost
its own share market and at the same time explore and infiltrate other ones.
Beginning with the strengths, representatives and distributors of Danaos show
an important support to company’s products, investing on them in a way, in
which every client can get astonished in the presentation and, also, stay
satisfied beyond expectations. Remarkable to mention that this corporation
wishes to extract the best of itself, thus it gives great importance to the
training of employees in the sales section. Financially speaking, the global
market shows huge competition among shipping industry and Danaos has achieved
to come out of its shell with the automation of its activities. Therefore, the
company has brought cohesion in the quality of products coming, degrading
competition in the market. Furthermore, this coherence has already led to good
returns on capital expenditure and has built new revenue steams and sufficient
free cash flow. Besides, Danaos has shown a good face in novelty and
development, which make them trustworthy to carry out any kind of project
upcoming. Moreover, it is widely known that Danaos has built a strong and
dependable personnel and specifically its suppliers who exceed supply
congestions via the distribution network they have contrived to manage. The
past years, Danaos has gained onsistent clients in containers, such as China Shipping, CMA-CGM, Hanjin,
HMM, Maersk, MISC, TCC, Yang Ming, UASC, Wan Hai, and Zim Integrated Shipping
Services. Lastly, it has made agreements for ten to twelve years with CMA-CGM,
Yang Ming in time charter and two other accredited charterers for 19 contracted
vessels and 18-year bareboat charters with an accredited charterer for its
other contracted vessels.

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WEAKNESS OF DANAOS CORPORATION-INTERNAL STRATEGIC FACTORS

 

SWOT analysis can
enable Danaos to overcome its problems or anything holding them back and create
a schedule or else a strategy, which can improve its skills. Bad news have been
already announced for Danaos corporation with the profitability ratio and net
contribution % being disputed, as it has reached a number aspiration. Furthermore,
Danaos’ products have faced problems against competitors’ ones. An intense
concern has been created, while its products are quite well and wanted, but at
the same time the sales position-proposition is not quite clear and determined.
Danaos Corporation is a prosperous company and has accomplished a great level
of conflation of small firms. Although, this case does not comply with the
merging of companies with different culture. Additionally, one of Danaos’
strong motos is Research and Development, and as we mentioned above it has already
built a developed training section, however not fully-advanced and able to be
compared with other successful shipping firms. Danaos Corporation is not yet
fully-integrated to compete with the best in the industry, as its corrosion in
the work force the past years does not let the employees raise their skills within
educational means, so as to work up new technological products. Last but not
least, the company has not shown up to recent times that it handles their
finances the proper and yielding way. Current asset and liquid asset ratios
prove Danaos’ liquidity need to be spent more profitably.

 

OPPORTUNITIES FOR DANAOS CORPORATION-EXTERNAL STRATEGIC FACTORS

 

A wide road opens for
financial recession and augmentation of customers following with bigger market
share, due to chronic elaboration in the shipping industry. Likewise, new
surfacing comer market has been created with the signing of the governmental
free trade agreement. Forecasting for great profit says that according to new
low taxation and inflation rate, incoming business activities could be planned
with the market stabilization and the reduction of interest rate. Latest
research of the GE healthcare has discovered the finest of oil drilling
machines, leading to new abilities in the manufacture of products in different,
but not dissimilar, sections. And as we talk solutions, one of the best for
attraction of new clients is within advanced products ahead of time, since
today we are provided with the best revolutionary technological means. Thus,
debilitation of market’s advantage leads to increased competitiveness.

 

THREATS DANAOS CORPORATION FACING-EXTERNAL STRATEGIC FACTORS

 

Rare but not impossible to happen that even a slight change in the demand
of highly profitable products will affect the company’s economy in the
short-term or long term financial period. As consumption concerns, a possible
threat for Danaos Corporation could be the imitation of low-grade quality of
products among broader markets, along with the change in consumer’s behavior
via online purchase towards the existing model of purveyance in material
products. Moreover, unstable political vibes and probabilities of American
isolation trends trouble the government about the number of markets through
exchange rate fluctuations globally. In case of increased raw material, wage
raise and, especially in risen prices, for instance the 15$ price in China, serious
pressure in the profitability of the company will be caused. Ultimately, the
new environmental rules under Paris agreement (2016) can lead to similar
reaction in various product and field categories. Zodiac Maritime, Seaspan Corporation, and
Costamare are the basic shipping competitors in containerships.

 

LIMITATIONS
OF SWOT ANALYSIS FOR DANAOS CORPORATION

 

Significant limitations are
used in the SWOT analysis, despite its wider utilization as a strategic planning
tool. Some of those limitations are the following. Specifically, in case of any
change in the environmental regulations, the one and only way not to be
considered as a threat for Danaos Corporation is to capitalize of the situation
for its advantage. To wit, it can examine the occurrence and produce
commodities suitable and sooner than the competitors’, assuming, of course,
that this alteration play in equal or, at any case, favorable for Danaos limits
of rivalry. In the SWOT matrix, are executed proposed tactics, in which
assessment window is given, while it should have been based upon an
implementation plan of any competitiveness of Danaos Corporation. Remarkable to
mention that the latinic term of status quo, meaning statistic evaluation,
provides future modifications, such as circumstances, capabilities, threats and
strategies change and the dynamics of competitive environment. During the
configuration of strategies, internal or, and, external factors interact.
Nevertheless, SWOT’s matrix does not point on those or on the discretion of
expediency success towards competitors’.

WEIGHTED
SWOT ANALYSIS OF DANAOS CORPORATION

 

According to the above, for that
ameliorative limitations of SWOT analysis-matrix, the company’s managers have
decided to evaluate the internal and external strengths and weaknesses of
Danaos Corporation and the possibility of facts, as well as their supposed
impacts to company’s potentials. This is the limitation of Weighted SWOT
analysis, as a better and more upgraded version of the old, simple SWOT method;
the administrators of corporation manage and aim in crucial matters efficiently.
Its unique disadvantage: the centralization of factors in their single form and
not how they influence Danaos company collectively and holistically.

 

 

 

 

 

DANAOS CORPORATION PESTEL

 &

ENVIRONMENT ANALYSIS

 

By PESTEL
analysis, Danaos Corporation has the ability to examine the macro-environment
of the company. Not to mention that PESTEL means Political, Economic, Social,
Technological, Environmental and Legal factors that can interact at any kind of
organization. Shipping can be affected by macro-environment elements,
especially in the setup of strategic profitability and advantageous
competitiveness. Thus, shipping organizations are unable to face
macro-environmental factors, in case political trouble shows up. For this
reason, Danaos Corporation should be kept up to a consistent ascension the
financial years following.

 

POLITICAL FACTORS THAT IMPACT DANAOS CORPORATION

 

Danaos
Corporation does business in a global shipping market, specifically in more
than ten countries around. Its basic threat;facing the political system and its
environment. Up to recent times, Danaos has achieved great accomplishments
among other companies around the globe in shipping industry, aiming to enter
various markets and gain big profits, examining their risks and background of
governmental regulations. The criteria to be thought and scrutinized are:

 

·        
Political stability and
importance of Shipping sector in the country’s economy.

·        
Risk of military invasion

·        
Level of corruption –
especially levels of regulation in Services sector.

·        
Bureaucracy and interference
in Shipping industry by government.

·        
Legal framework for contract enforcement

·        
Intellectual property protection

·        
Trade regulations &
tariffs related to Services

·        
Favored trading partners

·        
Anti-trust laws related to
Shipping

·        
Pricing regulations – Are
there any pricing regulatory mechanism for Services

·        
Taxation – tax rates and incentives

·        
Wage legislation – minimum
wage and overtime

·        
Work week regulations in Shipping

·        
Mandatory employee benefits

·        
Industrial safety regulations
in the Services sector.

·        
Product labeling and other
requirements in Shipping

 

 

ECONOMIC FACTORS THAT
IMPACT DANAOS CORPORATION

 

As of now, we have met the macro-environment factors that influence in general
the advantageous competitiveness, while the macro-economic ones affect the
inflation, saving, interest and foreign exchange rate and economic cycle as
well. The macro-economic factors define the percentages in demand and supply of
the industry and Danaos has shown interest in raising rates and inflation via
customer’s consumption. Although, these wishes are in need of governmental
shipping economic rules and that advance happens forecasting:

·        
Type of economic system in
countries of operation – what type of economic system there is and how stable
it is.

Government intervention
in the free market and related Services
Exchange rates &
stability of host country currency.
Efficiency of financial
markets – Does Danaos Corporation needs to raise capital in local market?
Infrastructure quality in Shipping industry
Comparative advantages of
host country and Services sector in the particular country.  
Skill level of workforce
in Shipping industry.
Education level in the economy
Labor costs and
productivity in the economy
Business cycle stage
(e.g. prosperity, recession, recovery)
Economic growth rate
Discretionary income
Unemployment rate
Inflation rate
Interest rates

 

 

SOCIAL FACTORS THAT IMPACT
DANAOS CORPORATION

 

Danaos
Corporation is known for the appearance of understanding and the marketing
PESTEL planning for their clients. Danaos has achieved comprehension of culture
and society and confronts PESTEL as the tool to affect the company’s
environment for its benefit. Danaos leads at:

·        
Demographics and skill level
of the population

·        
Class structure, hierarchy and
power structure in the society.

·        
Education level as well as
education standard in the Danaos Corporation ‘s industry

·        
Culture (gender roles, social conventions etc.)

·        
Entrepreneurial spirit and
broader nature of the society. Some societies encourage entrepreneurship while
some don’t.

·        
Attitudes (health,
environmental consciousness, etc.)

·        
Leisure interests

TECHNOLOGICAL FACTORS THAT
IMPACT DANAOS CORPORATION

 

In recent
years, the technological industry has been transformed and formed magically at
a rapid pace, without giving the chance to the consumer to espouse the new
media and move forward with them. For instance, it happens in the everyday
life; till the time they decide which mobile to buy, the next model comes out.
Not to mention the automotive sector with the automation, making its own
revolution. As long as technology disturbs various fields rapidly, Danaos
should keep up with these technological means faster than its competitors, so
as to gain earnings and solve any kind of situation in the quickest possible
way.

·        
Recent technological
developments by Danaos Corporation competitors

·        
Technology’s impact on product offering

·        
Impact on cost structure in
Shipping industry

·        
Impact on value chain
structure in Services sector

·        
Rate of technological diffusion

 

 

ENVIRONMENTAL FACTORS THAT
IMPACT DANAOS CORPORATION

 

PESTEL has categorized
the environment as well. Each country has its own environmental and taxation
regulations and these should be considered before investing to any of them. Renewable
sectors, based upon health, are way too different field, and that is why overtaxation
is added. Danaos Corporation plays among various markets globally and as each
country has its templates; PESTEL helps the company to evaluate environmental
factors. These are:

·        
Weather

Climate
change
Laws
regulating environment pollution
Air and water pollution regulations in Shipping
industry
Recycling
Waste
management in Services sector
Attitudes toward “green” or ecological products
Endangered
species
Attitudes toward and support for renewable energy

 

 

LEGAL FACTORS THAT IMPACT
DANAOS CORPORATION

 

What is a
company without its legal department? Noteworthy to say, any shipping organization
needs expansion, and so does Danaos in practice. Danaos, by PESTEL, examines
the any legal rules among diversed fields, so as the company safely invests on
them. Proper intellectual rights need to be concerned when wishing to pad the
market. Naming a few:

·        
Anti-trust law in Shipping
industry and overall in the country.

Discrimination
law
Copyright,
patents / Intellectual property law
Consumer
protection and e-commerce
Employment
law
Health
and safety law
Data
Protection

 

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