The line shipping industry is well suited to a strategic management simulation. The theoretical concepts are articulated clearly: acquire ships, create a subsidiary in upstream or downstream, negotiate a strategic alliance, invade a new territory, and so on. Success depends on a proper reading of the environment as well as continuous monitoring of competition. The transportation industry in general is notorious for the amplitude of its cycles of boom and bust, which requires great caution in investment. Many observers underline that line shipping is a hypercompetitive industry.
In NaviSim, the primary goal of every business is to get the highest share value at the end of the simulation.
The key to achieve this is to articulate the choices available to decision makers : main strategies, competitive strategies, international strategies, innovation strategies and selecting an organizational structure consistent with the strategy.
It is also necessary to ensure a proper implementation of strategies ! The ship owners need to understand the business cycle in the industry and acquire assets at low prices during recessions. It is also possible to negotiate the purchase of ships from competitors and create alliances to defend markets.
In short, successful companies are able to secure a dominant position in some market segments and to lock this advantage to exclude competition.