NONSTOP YACHT, S.L.

Group 1
SAJV Case Presentation

CASE BACKGROUND

NonStop Yacht S.L. is a Web site that provides instantaneous access to current product
information to the mega-yacht industry.
NSY sells products from suppliers world wide arranging for local delivery whenever possible,
as well as provide information and act as an independent method of information exchange
between similar service/product providers.
Founded by Paul Metcalf and based in Barcelona Spain NSY was originally launched solely
as an internet business.
1st year operations achieved sales of US$200000 whereas 2 nd year operations fell below the
expectations and struggling for breakeven results.
Mega-Yacht industry estimated at US$1035 million($383 from new builds and $652 from repair
business)

PROBLEM STATEMENT
Financial results were poor(Sales and Profits for 2 nd year not meeting expectations)
Success with this business model is proving elusive and investors are growing restless as
performance continues to fall short of the business plan.

EXTERNAL ANALYSIS

Economic activity in the mega yacht industry was estimated at $1,035 million world wide of
which $383 million was attributed to new builds and the remaining $652 million attributed to the
maintenance, refitting, and repair sectors.

Economic impacts of the mega yacht industry included purchases of goods and services, as well
as maintenance, repairs, refittings and docking fees from local marinas and boatyards

INTERNAL ANALYSIS - SWOT

Strengths

Weaknesses

One stop shop for information and instant access to parts and
services
High potential for growth
Ease of providing access to
specialty and rare parts
Large network of suppliers
Efficient buying and shipping process
Opportunities

Low direct/walkin customer base

Sales forecast set too high
Failure to achieve projected breakeven
Low cash flow
No brand recognition
Unattractive website
Threats

Investors may pull out if expectations arent met

Competition may obtain majority of direct/walkin
Consolidation with Palmer Johnson or National Marine
customer base
Growth through repair and refit yards and E-Commerce competition intensity could increase
dealing direct to yachts
Expenses incurred when
Marketing to customers directly providing a opening new stores
higher profit margin
Vertical integration by major yacht builders into the market
Marketing strategy to build image and knowledge of
Increase in standardization and
website for customers
consolidation of suppliers

POTENTIAL CAUSES FOR POOR

PERFORMANCE
By focusing on the web/online customers leaves the direct/walk-in customers available to the
competition
There are not available locations to gain a sufficient direct/walk-in customer base

OPTION 3 ORGANIC GROWTH THROUGH

OPENING MULTIPLE LOCATIONS
The company will have a good exposure
This would generate more walk in traffics for the company.
More small offices of Non-Stop Yacht in each port where sales happen will possibly generate more sales for
them.
This will also make yacht crews familiar with the company.