I
II
Executive Summary
Marine Technologies (MT) are expanding their operations in South-East Asia through a newly established sales office located in Singapore. The aim for the expansion is to gain a foothold in the market, after experiencing interest for their Dynamic Positioning and
communication systems. With the establishment of a sales office, MT aim to achieve sales for their flagship product the Bridge Mate™ Integrated Bridge System. The purpose of the thesis is to provide MT with relevant analyses and strategies to utilize in order to achieve a
successful launch of their IBS in South-East Asia.
The thesis includes primary data collected by the authors as well as extensive secondary data.
The secondary data focuses on the external analysis, where a deeper look on the selected countries and industry attractiveness was done. The paper also includes substantial information on MT, as well as the IBS product category. The primary data focused on mapping the perceptions of some of the relevant players in the market. The purpose was to map the current awareness and perceptions of MT, their IBS and its attributes, as well as general perceptions on the offshore industry. The data was collected through in-depth
interviews, as the survey created failed. Findings from the data set were very consistent from all interview subjects.
We have found that the offshore industry is attractive for MT‟s IBS, mainly due to few competitors with similar high-quality positioning focus, and the industry growth. MT should focus on Singapore in their entry strategy. Singapore is a good starting point for MT as it holds a position as an industry hub with a substantial number of both local and global decision makers. A key success factor will be to overcome the cultural differences that will occur. In order for MT to avoid the potential cultural risks, the thesis covers cultural understanding in depth.
Based on the findings from the analytical part we have crafted a strategy that will enable MT to succeed. We have ended the thesis with a recommendations section, where we present concrete measures to undertake in order to be successful in the South-East Asian offshore maritime engineering industry. The conclusion we have arrived upon is that MT has the capabilities and resources to overcome internal weaknesses and the external threats that exists in the market.
III
Acknowledgements
The group would like to express our appreciation to everyone that has generously helped us on this project. We will especially like to give our attention to some key persons.
First of all, we want to thank Mr. Frode Klepsvik, Vice President of Business Development in Marine Technologies, for giving us the opportunity to write this project, as well as the
guidance and support given to us in this period. We also want to thank other Marine
Technologies key employees, such as Ole Morten Husøy, Paal Liseth and Bill McKinnell, as well as their strategic partners, represented by Rick Abassi from Intelsat, who have helped us a great deal by sharing their knowledge.
We want to thank our interviewees who have shared their knowledge with us. They are all experts within their fields, and have provided us with valuable insight we would not been able to collect without them.
Lastly, we want to thank our supervisor, Assistant Professor Brian Tan, for his excellent guidance, supervision and patience. His input has been invaluable to us.
Singapore, April 2010
--- --- Henrik Holen Jan-Ove Hagen Røssevold
--- --- Ådne Skålid Andreas Oddane Gundersen
--- Thomas Storheill
IV
Strategic Overview
Recommendations Strategy
SWOT-Analysis Internal Analysis External Analysis
Theory Review Research Findings Research Methodology
The Maritime Industry and Marine Technologies
Introduction
V
Table of contents
Executive Summary ... II Acknowledgements ... III Strategic Overview ... IV Table of contents ... V Index of Figures and Tables ... X Acronyms ... XI
1. Introduction ... 0
1.1 Background to research ... 1
1.2 Timeline ... 2
1.3 Research Objective ... 3
1.3.1 Research Questions ... 3
1.3.2 Research Limitations ... 3
2. The Maritime Industry and Marine Technologies ... 5
2.1 Maritime Industry ... 6
2.2 Offshore industry ... 7
2.3 Edison Chouest Offshore ... 7
2.4 Marine Technologies LLC ... 8
2.5 Integrated Bridge Systems ... 10
2.5.1 Unique features of MT’s Bridge Mate™ IBS ... 14
3. Research methodology ... 18
3.1 Analysis Purpose ... 19
3.2 Research Questions ... 19
3.3 Design and Data Requirements ... 20
3.4 Data Collection ... 20
3.4.1 Secondary Data ... 20
3.4.2 Primary Data ... 21
3.4.2.1 Interview Process ... 21
3.4.2.2 Survey Process ... 22
4. Findings ... 24
4.1 Survey Analysis ... 25
4.1.1 Preliminary work ... 25
4.1.2 First deployment ... 25
4.1.3 Second deployment ... 26
4.1.4 Analysis ... 26
4.1.5 Survey evaluation and Findings ... 27
VI
4.2 Interview Findings ... 28
4.2.1 Findings from the Nanyang Technological University Library Department ... 28
4.2.2 Findings Farstad Shipping Pte. Ltd. ... 29
4.2.3 Findings Marine Technologies LLC ... 30
4.2.4 Findings Cultural Associate Professor from Nanyang Business School ... 31
4.2.5 Findings Swiber Kreuz Pte. Ltd... 32
4.2.6 Findings Jaya Holdings Ltd. ... 34
4.2.7 Findings Keppel Singmarine Ltd. ... 35
4.2.8 Findings Nordic Marine Pte. Ltd. ... 37
4.2.9 Interview process analysis ... 38
5. Theory review ... 41
5.1 Introduction ... 42
5.2 Internal analysis theories ... 42
5.2.1 VRIN - model ... 42
5.2.2 ACE – model (Attitude – Competence – Embodiment) ... 44
5.2.3 Value Chain Analysis ... 44
5.3 External analysis theories ... 45
5.3.1 PESTEL analysis ... 45
5.3.2 Cultural Theories ... 46
5.3.3 Purchase Process ... 47
5.3.4 Porter’s Five Forces... 47
5.3.5 Competitor analysis ... 48
5.4 SWOT – analysis... 48
5.5 Strategic analysis theories ... 49
5.5.1 Segmentation ... 49
5.5.2 Business level positioning strategy ... 50
5.5.3 Marketing mix ... 51
6. External analysis ... 52
6.1 The Regulation of the Maritime Industry ... 53
6.1.1 The regulatory role of the classification societies ... 53
6.1.2 The regulatory role of the flag state ... 54
6.1.3 The International Maritime Organization ... 54
6.2 External environment in our selected countries ... 55
6.2.1 Singapore External Overview... 56
6.2.1.1 Singapore and its offshore market ... 58
6.2.2 Indonesia External Overview ... 58
6.2.2.1 Indonesia’s offshore market ... 60
6.2.3 Malaysia External Overview ... 61
6.2.3.1 Malaysia’s Offshore Markets ... 63
6.3 Cultural aspects of working in South-East Asia ... 63
6.3.1 Communication ... 64
6.3.2 Long-term and short-term focus ... 65
6.3.3 Advantages and disadvantages with being Western in a Eastern dominated culture ... 65
6.3.4 Power distance and uncertainty avoidance in South-East Asia ... 66
VII
6.3.5 The Cultural Factors of Singapore ... 67
6.3.6 The Cultural Factors of Indonesia and Malaysia ... 69
6.5.6.1 Chinese businessmen’s influence in Indonesia and Malaysia ... 69
6.3.7 The GLOBE Project ... 70
6.4 Purchase decision process ... 73
6.5 Industry Analysis ... 76
6.5.1 Introduction ... 76
6.5.2 Market growth ... 76
6.5.3 Mandatory ECDIS – The Start of a Digital Revolution? ... 77
6.5.4 Competitive Environment ... 78
6.5.5 Customers ... 80
6.5.6 Suppliers ... 81
6.5.7 Industry Attractiveness ... 82
6.6 Competitor analysis ... 84
6.6.1 L-3 Communications ... 84
6.6.2 Furuno Electric ... 85
6.6.3 Raytheon Company... 86
6.6.4 Kongsberg Maritime ... 88
7. Internal Analysis ... 90
7.1 Relevant Resources and Capabilities ... 91
7.1.1 Financial ... 91
7.1.2 Location ... 91
7.1.3. Information ... 92
7.1.4 Human Resources ... 93
7.1.5 Innovation ... 94
7.1.6 Reputation ... 95
7.1.7 The Bridge Mate™ IBS ... 96
7.2 Value Chain Analysis ... 98
7.2.1 Primary Activities ... 98
7.2.1.1 Inbound logistics ... 98
7.2.1.2 Operations ... 98
7.2.1.3 Outbound logistics ... 99
7.2.1.4 Marketing and Sales... 99
7.2.1.5 Service ... 100
7.2.2 Support Activities ... 101
7.2.2.1 Procurement ... 101
7.2.2.2 Technological Development ... 101
7.2.2.3 Human Resource Management ... 101
7.2.2.4 Firm Infrastructure ... 101
7.3 ACE - model ... 102
7.3.1 Attitudes ... 103
7.3.2 Competence ... 104
7.3.3 Embodiment ... 104
7.4 Marine Technologies’ strategic partners ... 105
7.4.1 Relationship with Intelsat ... 105
VIII
7.5 Conclusion ... 106
8. SWOT-Analysis ... 107
8.1 Strength Matrix ... 108
8.2 Weakness Matrix ... 110
8.3 Opportunity Matrix ... 112
8.4 Threat Matrix ... 113
9. Strategy ... 115
9.1 Strategic Problem Definition ... 116
9.2 Goals ... 116
9.2.1 Operative: 1-2 Years ... 116
9.2.2 Strategic: 3-5 Years ... 117
9.3 Critical success factors ... 117
9.4 Market selection ... 117
9.5 Business level positioning strategy ... 121
9.6 Marketing Mix ... 122
9.6.1 Product ... 122
9.6.2 Price ... 123
9.6.3 Promotion ... 124
9.6.4 Place ... 125
9.7 Build and maintain relations ... 125
9.7.1 Establishing and managing relationships with strategic partners ... 125
9.7.2 Establishing and managing relationships with customers ... 126
9.8 Human Resources Management (HRM) ... 127
9.8.1 Recruiting and/or training the right people ... 127
9.8.2 Motivating the employees ... 128
9.8.3 Overcoming cultural differences within the organization ... 128
9.9 Alternative Strategy ... 129
10. Recommendations ... 129
10.1 Focus on the offshore segment ... 131
10.2 Overcome cultural barriers ... 131
10.3 Promotional activities ... 132
10.4 Sales Strategies ... 132
10.5 Innovative activities ... 133
11. Bibliography ... 134
11.1 Books ... 134
11.2 Published Articles ... 135
11.3 Internet ... 135
11.4 Databases ... 142
12. Appendixes ... 144
12.1 Appendix 1 – Mailing list for survey deployment ... 144
12.2 Appendix 2 – Offshore Petroleum Market in South-East Asia Survey ... 146
12.3 Appendix 3 – Introduction mail used in survey deployment ... 150
12.4 Appendix 4 - Interview with Farstad Shipping Pte Ltd - 12.02.2010 ... 151
IX
12.5 Appendix 5 - Interview with Associate Professor Ng - 2010.18.03 ... 155
12.6 Appendix 6 – Interview with Swiber Pte Ltd - 22.03.10 ... 158
12.7 Appendix 7 - Interview with Jaya Shipyard - 22.03. 2010 ... 160
12.8 Appendix 8 - Interview with Keppel Singmarine Pte Ltd - 23.03.2010 ... 161
12.9 Appendix 9 - Interview with Nordic Maritime PTE LTD - 03.04.2010 ... 164
12.10 Appendix 10 – Geert Hofstede’s Five Cultural Dimensions ... 166
12.11 Appendix 11 – GLOBE Project Graphs ... 167
X
Index of Figures and Tables
Figures
Figure I – Timeline
Figure II – Overview of Marine Technologies Figure III – Integrated Bridge Mate Overview Figure IV – VRIO Framework
Figure V – Porter‟s Value Chain Figure VI – Porter‟s Generic Strategies Figure VII – Purchase Decision Process Figure VIII – Industry Attractiveness Figure IX – ACE-model
Figure X – Strength Matrix Figure XI – Weakness Matrix Figure XII – Opportunity Matrix Figure XIII – Threat Matrix
Figure XIV – Positioning Perceptual Map
Tables
Table I – Strength Table Table II – Weakness Table Table III – Opportunity Table Table IV – Threat Table
XI
Acronyms
AIS: Automatic Identification System ARPA: Automatic Radar Plotting Aid BM™: Bridge Mate™
BM™IBS: Bridge Mate ™ Integrated Bridge System CCTV: Closed Circuit TeleVision
DNV: Det Norske Veritas DP: Dynamic Positioning
ECDIS: Electronic Chart Display and Information System ECO: Edison Chouest Offshore
ENC: Electronic Navigational Chart
FPSO: Floating Production Storage Offloading IBS: Integrated Bridge System
ICAS: Information, Control and Alarm System IMC: International Maritime Centre
IMO: International Maritime Organization MFW: Multi functional Workstation
MPA: Marine Port Authority MT: Marine Technologies
OME: Offshore Maritime Engineering OSV: Offshore Support Vessel PSV: Platform Supply Vessel SOLAS: Safety of Life at Sea
TEU: Twenty-foot Equivalent Unit UN: United Nations
VSAT: Very Small Aperture Terminal
0
1. Introduction
1 1.1 Background to research
After being active in the Asian market through use of agents for their sales and service operations in the region, Marine Technologies has recently established their own sales office, Marine Technologies Asia Pte Ltd, in Singapore.
On 22nd of September 2009, one of our group members met with MT‟s Vice President of Business Development Frode Klepsvik in Singapore and sent an e-mail the following day with a proposal on whether the group could write their diploma project for MT, focused on an aspect of the company‟s involvement in the Asian market. This proposal was received
positively by MT, and after consulting with Runar Framnes at the BI Norwegian School of Management, the group was given approval to write the bachelor thesis for MT.
Backround to
research Timeline Research
Objective
2 1.2 Timeline
Figure I - Timeline
22.09.09
• Initial meeting with Marine Technologies
23.09.09
• Agreement on groupwriting of Bachelor thesis
22.01.10
• First official meeting with MT
01.02
• Meeting with staff at Lee Wee Nam Library to gather offshore data
25.01
• Problem definition established
12.02
• Interview with Farstad Shipping Pte Ltd
16.02
• Survey on the South-East Asian offshore market first deployment
20.02
• Second deployment of survey & Second interview with MT
28.02
• Situation analysis completed
18.03
• Interview with Associate Professor Ng Kok Yee
22.03
• Interview with Swiber Pte Ltd & Jaya holdings
23.03
• Interview with Keppel
24-
26.03
• Asian Pacific Maritime exhibition
03.04
• Interview with Nordic Maritime Pte Ltd
09.04
• Strategic section completed
22.04
• Thesis handed in
3 1.3 Research Objective
Based on Marine Technologies position in South-East Asia and the interests of MT`s Vice President of Business Development Mr. Frode Klepsvik, the authors have developed the following problem statement for this thesis:
“How can Marine Technologies LLC succeed in launching their Bridge Mate™ Integrated Bridge System (IBS) for the offshore segment in the South-East Asian region?”
1.3.1 Research Questions
In order to determine the aspect and goals of this diploma project it is relevant to summarize these in some fundamental research questions that should help us acquire more knowledge and information on Bridge Mate™ IBS opportunities in the South-East Asia offshore market.
Hence, the following research questions needed to be answered:
1) What are the specific characteristics/features of the offshore market in South-East Asia?
2) What is the brand awareness towards MT/Bridge Mate™ IBS amongst shipyard owners/decision makers in the South-East Asian offshore industry?
3) In terms of integrated bridge systems, what characteristics or product attributes are the most valued in the offshore industry?
4) How can MT establish a foothold and increase their market share with the new Bridge Mate™ IBS in South-East Asia?
1.3.2 Research Limitations
MT is a global company with a worldwide customer base. The focus of this thesis will
exclusively be on the South-East Asian market, with an emphasis on the offshore market. The paper will more precisely address Singapore, Malaysia and Indonesia as considerable nations within the offshore industry. This region has been chosen to facilitate MTs establishment of a sales office in Singapore, which lies roughly in the centre of South-East Asia surrounded by Malaysia and Indonesia. In addition, there were limited funds available for travelling outside the region.
4
The decision on focusing on the offshore industry was mainly due to MT`s prior knowledge of the industry. They have experienced success in the offshore industry, both in America and Europe.
In order to provide sufficient amount of sources, there was conducted both primary and secondary research. The primary research was initially based on a thorough survey in the above-mentioned countries. However, conducting these surveys proved to be very difficult, as the recipients were reluctant to answer. In addition, the team decided to use in-depth
interviews. This was initially to get a basic understanding of the industry and market, as well as provide information that had not been satisfactory answered in the survey. Due to a fairly tight budget, conducting in-depth interviews outside of Singapore‟s borders was not possible.
Thus, sufficiently expedient data was gathered in Singapore.
5
2. The Maritime Industry
and Marine Technologies
6 2.1 Maritime Industry
The objective for this part is to provide a general introduction to the maritime industry and explain which part of the industry Marine Technologies (MT) operates in.
The maritime industry is a fascinating, sophisticated and complex business. The maritime industry has enabled import and export of goods on the massive scale necessary for the global world. Approximately 90% of world trade is carried by the international shipping industry.
During the last 50 years the cost of transporting commodities by sea has fallen steadily. But even though merchant shipping is accounted for roughly a third of the total maritime activity, there are other maritime activities, which support these core activities. Martin Stopford (2009)1 divides the maritime businesses into five groups. These groups are:
Vessel operations – those directly involved with ships
Shipbuilding
Marine resources - including the businesses which are concerned with offshore oil and gas, renewable energy and minerals.
Marine fisheries – including aquaculture and seafood processing
Other marine related activities – mainly tourism and services
These five categories are interdependent. The ship owners of the merchant fleet, offshore and fishing vessels needs the shipbuilders to provide them with their ships, and the shipbuilder need the services and technology provided from suppliers in the other marine related activities category in order to meet demands from their customers. MT falls under the other marine related activities category, more specific the marine equipment industry or shipbuilding supply industry. The company‟s products supply the commercial, naval and offshore shipbuilding companies with navigation, communication and safety technology.
1 Stopford (2009) p. 48-49 Maritime
Industry
Offshore Industry
Edison Chouest
Marine Technologies
Integrated Bridge System
7 2.2 Offshore industry
As the thesis will focus on the offshore segment in South-East Asia, this section will provide basic information of the global offshore industry. To ensure the right focus on our project, this thesis has chosen the following definition of the offshore market:
“The offshore market consists of the following activities: exploration, development,
production, and the supply and maintenance of offshore oilrigs. The transportation of oilrigs to its drilling position and the process of pipe laying and anchor handling are also included because this is where the main customer base is found. This means that this report will focus on the upstream2 sector in the petroleum industry.”
The first offshore oil platform was constructed in 1897 at the end of a wharf in California.
The first platform to be built in open waters in open waters was located in the Gulf of Mexico in 1947.3 Some of today‟s notable offshore fields are found in the North Sea, the Gulf of Mexico, and Santos Basins off the coasts of Brazil. There are also significant offshore fields in South-East Asia.
Offshore oil and gas production is even more
complex and challenging than land-based oil and gas production. The reason for this is the remote and harsh environment, a specific example being the North Sea, which frequently endures inclement weather. This makes the offshore industry a very demanding industry that needs highly technological solutions, and the innovation in the offshore industry is therefore concerned with overcoming these challenges.
2.3 Edison Chouest Offshore
In order to provide sufficient information, the following section will provide an organizational chart, which shows an overview of Marine Technologies, and where they are placed in relation to the parent company Edison Chouest
2 (Upstream is a term which describes the exploration and production sectors within the oil and gas industry.) (http://www.offshore-technology.com/glossary/upstream.html : “Upstream”
3 http://science.howstuffworks.com/offshore-drilling.htm :“Offshore Drilling”
8 Offshore.
Edison Chouest Offshore (ECO) was founded in Galliano, Louisiana in 1960. Since 1993 the company has more than tripled its size, making it the fastest growing offshore vessel service company in the world.4 With their in-house design and building capabilities, ECO has become unique and very successful in the offshore boat service industry. Reasons for this are the company‟s ability to design, build and operate vessels at a competitive price. The company also owns and operates the largest independently owned fleet of seismic and research vessels in the world.5
As a conglomerate with over 8000 employees operating within the shipping and offshore industry, ECO‟s sphere of companies are able to offer a variety of products and services.
Examples are logistic support, staging and storage, vessel repair, tank cleaning, and vessel sharing services. It also develops control systems, dynamic positioning systems, joystick solutions, integrated bridge systems, and telephone and satellite communication solutions for offshore vessels.6 Marine Technologies LLC are the main provider of these services.
2.4 Marine Technologies LLC
As a part of Edison Chouest Offshore (ECO), Marine Technologies LLC (MT) provide the ECO fleet with up to date control and communication systems based on the latest technologies available
in the market. ECO is MTs‟ main customer, contributing approximately 40% of MTs‟ annual revenues. Established in 2002, MT started with development of control systems, especially Dynamic Positioning (DP) Systems for offshore vessels. 16 months after the company was started the first vessel with a DP-system from MT received its DPS-2 safety notation from the classification society American Bureau of Shipping.7 Today MT produces and deliver type approved DP systems of all International Maritime Organization (IMO) classes, as well as less complex DP and Joystick solutions. MT also delivers telephone and satellite
communication solutions. This is enabled through a strategic partnership with Intelsat, the world‟s biggest operator and provider of satellite communication services. MT now produces
4 http://www.louisianaeconomicdevelopment.com/opportunities/success-stories/edison-chouest-offshore.aspx :
“Edison Chouest Offshore”
5 http://www.subsea.org/company/listdetails.asp?companyid=2847 “Edison Chouest Offshore”
6 http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=4291932 “Edison Chouest Offshore, LLC”
7 http://www.marine-technologies.com/Index.aspx?PageID=97&Language=en-US : “About MT”
9
Integrated Bridge Systems (IBS) fully compliant with IMO regulations and appurtenant standards such as International Electrotechnical Commission and International Organization of Standardization. The Bridge Mate™ IBS has received the “Det Norske Veritas” (DNV) type approval of “NAUT-AW”, the most comprehensive bridge class notation in the industry today. This is a strong indication of MT‟s commitment to high quality and performance in their products.
The company‟s main office is located in Mandeville, Louisiana, focusing on the Central and North American market. Marine Technologies AS is located in Egersund, Norway and serves as the base of operations for the European market. Sales and Service in Asia is covered through Marine Technologies Asia Pte Ltd in Singapore. The company is also established in Rio de Janeiro as MT Brazil. MT Brazil is responsible for all communications services being offered in Brazilian waters and to Brazilian flagged vessels.
MT‟s vision is to be an industry reference for reliability, user friendliness and cost efficiency in Integrated Bridge, Dynamic Positioning and Communication solutions for offshore and commercial shipping worldwide. The company aim to utilize the differentiation potential in their products and services by being technologically advanced but at the same time being modular and flexible in design. This enables MT to target both the more advanced segments of the shipping market asking for technically advanced and sophisticated ship control systems because of high safety, security and functionality requirements, as well as the “commodity”
market where medium to low cost solutions are asked for. MT does not focus on the very low- cost end of the market that only installs the bare minimum as required by IMO regulations.
Figure II – Overview of Marine Technologies Marine
Technologies LLC, (USA)
Marine Technologies AS,
(Norway)
Marine Technologies Asia Pte Ltd (Singapore)
MT Brazil Edison Chouest
Offshore
10
As a part of ECO, MT originates from the offshore market, which still constitutes the main market for all of the company‟s products and services. Other market segments for MT are:
The merchant ship fleet trading internationally
The international fishing fleet
The domestic fleets or merchant and fishing vessels
The world leisure “fleet”
2.5 Integrated Bridge Systems
The thesis is focused on the market potential for the Bridge Mate™ Integrated Bridge Systems (IBS) in the South-East Asian market. This section will describe the product in depth, as well as the unique attributes of the Bridge Mate™ IBS.
The International Maritime Organization (IMO) defines IBS as: “[...] a combination of systems which are interconnected in order to allow centralized access to sensor information or command/control from workstations, with the aim of increasing safe and efficient ship's management by suitably qualified personnel.” 8
The idea behind the IBS is to make the bridge more streamlined and easier to operate. Prior to the IBS, the bridge on a tanker or containership could consist of as many as 12-16 screens and controls over a length of 10-12 meters. The IBS makes it possible to reduce this to 3-4
screens, which contains all navigational information and other relevant information.
IBS are meant for reducing the complexity of the bridge controls and to make it more efficient. This eases the operation of the vessels, because of the reduction in screens and analogue gauges. The IBS also improves safety and fuel consumption because route planning is made much easier and more effective. IBS can contain the bare basics, which IMO and/or classification societies demand as a minimum or it can be much more complex. This depends on the customer needs and the nature of the business the vessel is designed for. A standard IMO layout for IBS is shown in Figure III.
8 www.imo.org Performance standards for integrated bridge systems were adopted by IMO in 1996 (Resolution MSC.64(67))
11 The following sections will describe
the basic functions of an IBS.
An Electronic Chart Display and Information System (ECDIS) is an electronic map of the sea, as well as depth and current information. This system has audio and/or visual alarms when the vessel is in proximity to
navigational hazards, like other vessels or shallow water.
The system is connected through satellite internet- connection, which makes it possible to download new maps as well as keep track of position.
Automatic Radar Plotting Aid (ARPA) works together with the Automatic Identification System (AIS), this makes it possible to track and adjust course compared to other ships in the vicinity. This system can handle 100 different radar plottings at the same time, showing information such as ship name, course and speed.
Conning display with track information is a customised screen, which shows general information during long haul sailing. The different
information is chosen by the Captain or whoever is responsible on the bridge. The user can create a personal layout, and quickly retrieve it in case of an emergency. The purpose of the Conning display is to feed the person responsible on the bridge with the most relevant information, and avoid overload of information.
Route Management enables smart route planning aided by the ECDIS, weather and current information. Route Management makes fuel and time savings possible.
Heading control system provides the user with information on the course, speed, direction, and Estimated Time of Arrival.
Figure III – Standard IMO IBS
12
Wind information provides the direction and speed of the wind and Gyro compass values determines the direction of the ship‟s bow in relation to the geographic true north.9
All this information can be gathered in three or four screens, with a customized layout done by the people who are responsible for handling of the ship. On long haul freights or time- consuming operations there are several people working in shifts on the bridge. MT‟s IBS has the opportunity to save several different layouts so each person could find his own customized layout within a few seconds. This function will be useful in an emergency situation, because the captain would quickly be able to find his layout, which he is familiar working with.
Most of the companies who provide IBS use 5-6 screens, where two are used for ECDIS. This is due to the lack of integration between the screens, and one screen could be used for backup.
The most common layout is: ECDIS, Radar, Conning, Radar, and ECDIS. The AIS is
designed to show its information on the ECDIS charts. A multipurpose chair is placed next to these controls. These chairs have usually some controls on the armrests, such as steering of the vessel or other functions such as cranes etc. The complexity of these chairs is of course related to the complexity of the IBS and the needs of the captain.
It is also possible to customize the screen for different operations. This gives the Captain an opportunity to customize the screen layout in terms of what he needs to control when docking, such as thruster and propulsion control. This feature makes it easier because all unnecessary information is removed, avoiding information overload.
This multi functional workstation (MFW) provides the captain with information from many different sources to a single workstation. Available on all MFW you will find:
o ECDIS o ARPA radar o Conning Display o Autopilot
o Thruster controls o ICAS
o CCTV
o Window wiper, washer, heating o Deck, navigation & search lights
9 http://www.tc.gc.ca/marinesafety/TP/Tp3668/6Standard.htm :“Standards for gyro-compasses”
13
The following features can also be offered on the MFW:
Information, control & alarm system (ICAS) consists of several alarm systems. There are a vast number of sensors onboard such as; smoke detectors, gas detectors, infrared and heat detectors. These advanced sensors are mainly found in the engine room, but smoke and gas sensors can be found all over the ship.
The Cameras makes it possible for the captain to switch to the Closed Circuit Television (CCTV), and get live feed from operations or the engine room. This is useful in certain high- risk operations such as handling of goods/ supply, pipeline laying, or handling of anchor operations offshore.
The thruster/ propulsion control helps large vessels to dock and to increase rate of turn. The thrusters are located in the front and middle of the ships, dependent on the ship size.
Thrusters make it possible to manoeuvre the ships sideways. On larger ships this is made possible with a tunnel thruster that makes it feasible to manoeuvre sideways both starboard (right) and Port- side (left). Turning the ship is now possible with a much smaller radius.
Propulsion control makes it possible to control the main engine torque and the thruster from one station.
Dynamic Positioning (DP) enables the Captain to hold the ship at the exact position within centimetres, which is absolutely necessary in pipeline laying and supply operations. During such operations the ship is a few meters from the oilrig, and a crash would be a
catastrophe. DP systems are separated into 3 different classifications (1-3), depending on the complexity and the safety necessity. DP 1 is the simplest system with one closed circuit and no redundancy if the computer fails. DP2 contains a backup computer or one individual computer at starboard and one at port side. This gives the system a higher level of security. The highest level of DP is the DP3, most
commonly found on Offshore Construction Vessels (OCV). These vessels are in charge of drilling a hole, which can be several hundred meters under water. This makes it extremely important that the drilling vessel is located at the exact position during the operation.
Therefore they use the DP3, which consists of the same equipment as a DP2. In addition, there is a third system located at another place on the vessel with a fireproof wall between them. The third DP operates as the DP1, separated from the two on the bridge. This is used if
Bridge Mate™ DPS
14
there would be an emergency on the bridge or if the two other crashes. Typical vessels demanding DP include:
Drill ships
Crane vessels
Diving support vessels
Floating Production Storage Offloading
Pipe laying vessels
Platform supply vessels
Supply vessels10
These systems have to be approved by the international maritime organization (IMO) because of the hazard of hacking and unwanted “entry” (via internet) of the bridge system on a ship, which could lead to severe accidents. Therefore these systems are specially designed to ensure that only authorized personnel could remotely enter and alter the system. Since the ECDIS and a few other systems could be remotely updated they need an Internet connection onboard.
2.5.1 Unique features of MT’s Bridge Mate™ IBS
MT‟s system uses a normal Windows based computer, which has been stripped down to the bare essentials in order to run the IBS system. These computers have no moving parts such as fans or hard disc. The reason for this is the high frequent vibrations and rough sea on board ships, and this would give a normal computer a lifetime of 5-6 months maximum before they would crash.
MT uses Ethernet cables in their installation of their system, this because such an installation would not require that each sensor and application would need their own cable. The result is
10http://www.km.kongsberg.com/ks/web/nokbg0240.nsf/AllWeb/14E17775E088ADC2C1256A4700319B04?O penDocument :”Dynamic Positioning, DP-systems”
Bridge Mate™ IBS
15
reduced installation time and the amount of cables on the boat, reducing costs and time used for malfunction searching.
By using Ethernet cables it is also possible to use all the screens for all applications as well, reducing the risk of malfunctions. This is a huge advantage compared to other suppliers were the bridge is not as integrated as the Bridge Mate™ IBS. Many of these suppliers use normal cabling and require a lot more cables, which complicates the installation.
MT is able to integrate 3rd party supplies such as CCTV, echo sonar, sonar, main propulsion, and thrusters. This is a big advantage compared to other suppliers who are using other platforms such as Linux, because it reduces the compatibility with other systems. MT‟s Brigde Mate™ is very flexible in terms of integrating 3rd party products and services. Many of the competitors are delivering IBS that contains a fixed set of applications. If a customer requires additional applications, these would not be able to be integrated. These would therefore be “stand alone” system on the IBS itself, making it deferred to faults and malfunctions.
The different modules on the Bridge Mate™ are not wider than 60 cm (23,62 inches) so that the modules can easily be transported to the bridge. This also eases the installation since these systems are normally installed late in the process of building. Some of the other suppliers deliver their IBS in one or two modules, making it necessary to remove windows and doors to get them inside the bridge and installed.
For any online transmission, like update of charts, the computer easily connects to MT Headquarters. In the event of any fault of the system, MT can conduct a remote search of the system which demands that the Captain and MT exchange codes. In addition to exchanging codes, the Captain has to physically switch two keys to allow access to the IBS. These remote fault searches enable MT to do an exact diagnosis of the entire system and find which part of the system has failed. Many other systems do not offer this service, so they have to send a technician to the ship and search the system and then get the part ordered. This would require significantly more time and the opportunity cost to the owner of the ship will be great.
MT‟s IBS has multiple redundancies on the entire system, which means that if one part of the system fails, the system will announce this on the IBS screen. This will lead to the multiple redundancies getting activated, which will enable the system to continue to work as usual.
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MT has made their system so the service and replacement of essential equipment such as screens/ monitors are easy to replace, even at sea. This is essential to maintain the safety at sea, because the screens can be changed in few minutes, as long as they have spare parts onboard. The screens that MT uses costs about 1000 US$, making it quite affordable to have a few in stock onboard each ship to ensure a contingency of sailing even after a system failure.
Even if there are no spare parts on board, the system is designed so that all screens have the capability to display any information. This ensures that safety is always maintained, even if some screens crashes.
Human/machine interfacing is a key subject in order to safeguard stress free working conditions. To ensure a one-man-operation of the aft, MT supplies a unique aft control system. The system contains a MFW with a specialized operator chair, and a MFW for the operation of the DP in backup. Each armrest includes a 15-inch TFT Touch screen monitor for DP, CCTV, conning, radar or other selectable functions. This simultaneously enables the operator to keep track of all the navigational
equipment such as ECDIS, radar/ARPA, and main Conning display. The chair is mounted on rails allowing the operator to electronically move the chair back and forth; this ensures that the operator can keep control of multiple MFW‟s. The chair is also fully adjustable to ensure ergonomically fit and comfort.
MT has designed the entire product to ensure that it does not take up much space. Some of the competitors have their screens 30-50 cm in front of the windows, whereas MT has their screens in an angle in front of the windows, which gives an increased view angle. This is made possible by reducing the number of analogue switches and gauges in front of the screens. The increased view angle is a great advantage if any work should take place on the bow of the boat.
The ClearPoint Weather is an extra service from MT, which delivers an accurate weather forecast in high quality. It is also the only commercial weather service certified by the Det
Marine Technologies Operating Chair
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Norske Veritas AS (DNV).11 The service is possible to customize for each customer, and they have 24 different modes on their forecast to choose from. The service ranges from normal forecasts containing wind, air temp, waves, currents, and fronts to more advanced forecasts containing all relevant information to assess the current and forecasted situation.
11 http://www.clearpointweather.com/products/commercial-marine/commercial-marine/ : “Commercial Marine”
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3. Research methodology
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This section explains the purpose of the study, and how the group collected the data set necessary to answer the projects research questions. The following four steps are used to describe this process, based on a research model by Gripsrud, Olsson and Silkoset (2007)12:
The conclusions of this process can be found in the next section “Findings”.
3.1 Analysis Purpose
The purpose of this research is to provide market insight for Marine Technologies LLC of the offshore petroleum industry in Indonesia, Malaysia and Singapore, focused on their Bridge Mate™ IBS. Based on this information the authors will suggest a strategy MT should apply in order to take advantage of the opportunities in these markets.
3.2 Research Questions
The research questions are very useful to guide the researcher through the research process, and help acquire more knowledge and information in order to fulfil the research purpose. The group decided upon these four following research question for the research study:
1) What are the specific characteristics/features of the offshore market in Singapore, Malaysia and Indonesia?
2) What is the brand awareness towards MT/ Bridge Mate™ IBS amongst decision makers in the Singaporean, Malaysian and Indonesian offshore industry?
3) In terms of integrated bridge systems, what characteristics or product attributes are the most valued in the offshore industry?
4) How can MT establish foothold and increase their market share with the newly introduced Bridge Mate™ IBS in Singapore, Malaysia and Indonesia?
12Gripsrud,Olsson & Silkoset (2007) p. 53 Analysis Purpose Research
Questions
Design and Data requirements
Data Collection
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The group decided upon a few subjects that would give the information needed to fulfil the research purpose, and the research questions cover these subjects. The questions narrow down the scope of the project, yet they are still open enough to give the project the depth it needs to be useful to MT. The answers to these questions will:
Explain the market situation of the offshore market in the region (RQ1)
Clarify the markets current perception of MT (RQ2)
Explore the possibilities for MTs current product portfolio in the industry (RQ3)
Recommend strategies for successful market entry (RQ4)
3.3 Design and Data Requirements
To answer our research questions we initially adopted an exploratory approach, which allowed us to get a better understand of the industry. This exploratory stage was relevant as we had little or no prior knowledge or experience in this industry or market, and findings would answer RQ1. This stage consisted of interviews with relevant people within the research area and data collection from secondary sources like web pages and books. This is explained in detail in the following section.
Once we completed the exploratory stage and had gathered enough knowledge on the offshore industry, we moved to the second stage which focused on the collection of qualitative, as well as quantitative data, in order to answer our remaining research questions (RQ2-4).
3.4 Data Collection
Our data consists of two types of data: secondary data and primary data.
3.4.1 Secondary Data
During our exploratory stage, we realized that we needed to look at relevant external sources of data. This would provide an objective point of reference and allow us to triangulate any data we collected ourselves. This would facilitate the quality of our analysis later on, by enhancing the quality and type of data analyzed. Our external data sources were Internet data bases made available through NTU including official secondary sources such as The Maritime and Port Authority of Singapore, books such as Strategic Asian Marketing and other
independent internet sources such as Datamonitor. We also received some internal secondary data from MT, such as product specification documents created for potential customers.
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In order to better understand the offshore petroleum industry in Singapore, Malaysia and Indonesia, we realized that secondary data sources like internet, books or company brochures did not give sufficiently accurate or at times relevant information. One main problem with these secondary sources was that the data was collected for other purposes13, or it was not very objective. As such we decided to conduct our own primary data set in addition to the secondary data collection. In addition, since there were no secondary data available to answer research questions two to four, we had to create a data set which would enable us to answer these questions.
3.4.2 Primary Data
Our primary data set consists of interviews of people who were able to help answer some or all the research questions, and a survey which was given to relevant businesses within the industry (the list of companies can be found in appendix 1).
3.4.2.1 Interview Process
In the early stage of the project, the group had a meeting with the VP of Business
Development of MT who was our contact person, Mr. Frode Klepsvik, so we could better understand their current situation and define our project. This meeting took over three hours, and the group received a very thorough brief of MTs‟ activities, specifically concerning the Bridge Mate™ IBS. This allowed us to define the scope of our project.
As a part of the primary data collection, and we decided to conduct several short, semi- structured interviews with relevant people in the industry to get a more accurate and updated image of the industry. Such interviews are easy to arrange for both parties, and there was more room for in-depth details and “loose talk”. Our group members conducted the interviews on the subjects listed below:
Mr. Akbar Hakim bin Haji Harun and Mr. Lim Kong Meng, Nanyang Technological University Library Department.
Mr. Henrik Fitinghoff, General Manager, Farstad Shipping Pte. Ltd.
Mr. Frode Klepsvik, VP Business Development, Marine Technologies LLC.
Mrs. Kok-Yee Ng, Associate Professor in Organizational Behavior and Human Resource Management in the Division of Strategy, Management & Organization at Nanyang Business School.
Mr. Steve Ho, Senior Manager, Swiber Kreuz International Pte. Ltd.
13 Gripsrud,Olsson & Silkoset (2007) p. 78
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Mr. Koh Kin Siah, Project Manager, Keppel Singmarine Pte. Ltd.
Mr. William Chou, Shipyard Manager, Jaya Holdings Ltd.
Mr. Markus Kvaerneng, Marketing and Chartering, Nordic Maritime Pte. Ltd.
The interviews were semi-structured, meaning we had chosen a few areas we wanted to cover and just a few specific questions prepared for the respondent. All interviews were with
relevant people within the study area, and all meetings were pre-booked. We will discuss the findings from these interviews later.
In addition, the group spent three days attending the Asian Pacific Maritime 2010 trade fair14, which we received invites to from MT. At this expo we met three other MT employees, and a few important strategic partners of MT. The group spent many hours talking loosely with these, and learned many things we did not know of, such as a few competitive advantages of the BM™ IBS. The learning from observing MTs‟ sales people in action was also very valuable. We seized this opportunity to learn as much we could about MT, their employees and partners, many of their competitors who also attended, customers who visited MTs stand and get a general feeling of the maritime environment in the Asian pacific region. As this was an invited occasion, we had no opportunity to take quotes or establish all the findings, but some of the information in this paper was gathered at the expo.
3.4.2.2 Survey Process
For our quantitative data collection a survey was created to answer all our four research questions. A great deal of time was spent on constructing this survey, as we felt it was a crucial one-chance opportunity to collect the data necessary for our study conclusions. We used internet sources like The Maritime and Port Authority of Singapore15 to locate potential respondents within the offshore industry in Singapore, Malaysia and Indonesia. The goal was to map the perceptions of these respondents in their dealing with offshore vessels, whether they bought/ sold/ leased/ built or used them. We used software called Confirmit16 to design and deploy the survey using the mail addresses collected from company websites. A complete list of all companies who received the survey can be found in appendix 1. The survey had 28 questions, most of them based on statements were the respondent answered how much he
14 http://www.apmaritime.com :”Asia Pacific Maritime 2010”
15 http://www.mpa.gov.sg/ ”The Maritime and Port Authority of Singapore”
16 See http://www.confirmit.com/ for more information
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would agree with such a statement from 1-7, and three open ended questions. The complete survey can be found in appendix 2. The findings of the survey will be addressed and discussed in the next section of the paper.
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4. Findings
25 4.1 Survey Analysis
This section will explain how the survey was created and describe the process of finding respondents and deploying the survey. The section will conclude with an evaluation of findings.
4.1.1 Preliminary work
The better part of two weeks were spent on finding relevant respondents for the survey using Internet databases, in order to ensure that relevant people, who were able and interested in completing the survey, were reached. 91 unique e-mail addresses of companies and
employees who fulfilled our responded criteria‟s were collected. The criteria‟s were that they would buy/ sell/ lease/ build or use offshore vessels, and the company had a base in
Singapore, Malaysia or Indonesia. Some of these companies were Norwegian companies with offices in the region. It would have been preferable to find more, but it proved hard as the biggest databases of addresses became depleted. A draft of the survey was sent as a test survey to our supervisor for review and asked for any advice. A checklist of things that could be changed was received, and complied with all these. After this the completed survey was sent to a few other independent test subjects to ensure the feasibility of the test. They all understood the language and statements in the survey, even though they were not familiar with the offshore business.
4.1.2 First deployment
The final version of the survey was deployed on the 16th of February using a Gmail account created specifically for this project.17 The introduction mail text can be found in appendix 3.
Immediately problems occurred, as instant replies informed that some of the addresses had blocked the incoming mail. This was most likely because the companies were afraid of virus infections and a Gmail account, which is not known for its security, was used. Viruses are one of the biggest weaknesses of using a web-based survey.18 Despite the fact that 73 of the e-
18 Gripsrud,Olsson & Silkoset (2007) p. 166
Survey Analysis Interview Findings
26
mails reached their destination, only five people actually pressed the survey link sent to them, and none of them completed the survey.
4.1.3 Second deployment
It was decided to use another mail account. Instead of a Gmail account, Confirmit‟s own deployment system was used, as it would be easier to send reminders as well. This way one of our group members‟ BI mail 19 was used. The intention was to make the mail look more credible to the receiver. The survey was deployed to the same respondents on the 20th of February, but the result was the same: no respondents. One invite was included to one of the group members to ensure nothing was technically wrong with the survey, but the survey worked perfectly. A reminder was also sent to all respondents on the 26th of February, but still no one completed the survey.
4.1.4 Analysis
In retrospect we have identified what went wrong, and why we did not get a single reply.
Our respondents were all active in the petroleum offshore industry, so the survey is within their area of interest. A few of the companies were also of Norwegian origin; something we believed would work in our favor. As the respondent can choose the time and place for completing the web-based survey themselves, one would believe this was something positive.
However, research shows that the respondent often delay doing the survey, and ultimately ignores it completely20. This is something that may have happened in our case, as we deployed the mails during regular office hours. The fact that our mail address was from a gmail account and later a student account may have caused the e-mails to be blocked because of potential viruses.
The team included several incentives for the respondent, including the offer to share the data (not the findings) collected, and the fact that Marine Technologies would receive a list over the respondents and “look favourably” on those who participated. This was suggested by Marine Technologies themselves. We introduced ourselves as students working with a project within the respondent‟s industry and geographical area, which should create some sort of goodwill. It was informed that the survey would only take between 6-8 minutes, something we did not consider to be an unreasonable amount of time. A wish was also included for the respondent to relay the survey link to anyone he/she thought were relevant, in order to help us collect more data, and at the same time showing trust towards the respondents judgment. We
20 Gripsrud,Olsson & Silkoset (2007) p. 167
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believed that if a person received an invitation from a colleague, this might make him/her more likely to answer the survey. The perceived risk of any coverage errors was thought to be acceptable in this case, considering the benefits of more respondents. For the reminder we even changed the subject of the mail, removing the word survey and including diploma project, in order to lure the respondent to read the mail.
4.1.5 Survey evaluation and Findings
As we did not manage to collect data from the survey, there will not be an analysis of the survey itself. However, this survey experience has given us some useful perspective and findings.
At the start of the project we were told by our supervisor that using web-based survey had some obvious limitations, and that we would need people to relay the survey to other people.
We misinterpreted this advice, and thought that if we just include a request for relays, we would increase our respond rate. In retrospect, we realized that we should in fact take the advice more literary; relationships are of high importance in Asia. We should have gathered a few contacts, maybe through MT/NTU/Norwegian embassy/Innovation Norway to mention a few options. These could have helped us deploy the survey to relevant people within their network, creating a snowball effect.
Another issue was that our status as students was much lower than the managers we
approached here in Asia, whereas in Norway people would be more open minded and helpful.
Once again our cultural background clouded our judgment. We should have added some
“seniority evidence” in our e-mails, like school logos, recommendations or letters from NTU/BI professors or senior MT employees etc. as evidence for our genuineness. Gathering this would not be a problem, and it would definitely have increased our credibility, and in turn the responsiveness. We found that the middle management we contacted was afraid to say something their boss may not approve of, so they did not say anything at all. They were also afraid to give out “sensitive” information they believed would harm the company, even though we did not request any such thing. We also realized how substantial the limitations of web-based surveys really are; people rarely find time to participate without proper rewards.
Although these findings revolve around a survey, they can be used as a learning example for MT. It really demonstrates how important network, seniority and cultural understanding are in this region and industry.
28 4.2 Interview Findings
This section will present the findings from eight interviews and analyze the interview process.
The interviews are presented chronologically.
4.2.1 Findings from the Nanyang Technological University Library Department The first of February, at the start of our project, the team booked a meeting with two
employees from Nanyang Technological University‟s‟ library department. The purpose was to seek help for the secondary data collection, as the team believed the amount of data on the offshore industry to be significant, and we wanted to find the most relevant information as early as possible in the research process. One of the employees was Mr. Akbar Hakim bin Haji Harun, Head, Business Library & Senior Assistant Director. Mr. Akbar has a deep knowledge of the research services available at the library, and the team hoped he could help us find relevant secondary sources for our research. The other employee was Mr. Lim Kong Meng, Head, Engineering Library & Senior Assistant Director, Engineering Librarian (Civil
& Maritime Studies). Mr. Lim is an educated civil engineer, and has worked many years in the maritime industry in Singapore, as well as a researcher for the library. Our hope was that Mr. Lim could give us some information on the maritime offshore industry in Singapore, as well as suggest good secondary sources for further studies within this industry.
The group received a short brief on the maritime industry and different vessels operating within it from Mr. Lim. He told us that Singapore was a very important participant in the global offshore industry, and gave some hard facts to support this statement: 60% of all new build oilrigs are built in Singapore making Singapore the number one rig builder in the world.
Singapore is also the world‟s third largest oil refinery nation, as well as the busiest port in the world in terms of total shipping tonnage. In addition, Singapore is the fifth largest owner of ships in the maritime industry. These were all facts that supported our impression of
Singapore as a global marine, offshore and shipping hub.
They suggested big Singaporean companies we could contact ourselves, like Keppel and Jaya Holdings, which later proved helpful. We received many examples of useful internet data bases we had access to from NTU library portal, such as Factiva, Fairplay24 and
Datamonitor, governmental sites such as The Maritime and Port Authority of Singapore, and book such as “Of hearts and minds”. This was especially helpful to our research process, because it gave us a starting point for data collection.
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Some general advice was also given, such as to identify main players in the industry which in turn would help us to define the industry. It was important not to confuse the offshore
maritime segment with the offshore banking segment (which is very big in Singapore), and to read up on the different types of offshore vessels.
4.2.2 Findings Farstad Shipping Pte. Ltd.
Farstad Shipping ASA is a major international supplier of large, modern offshore support vessels. The company's fleet consists of 30 anchor handling tug supply vessel, 24 platform supply vessels and 3 subsea vessels. Farstad has its headquarters in Norway, and an office in Singapore (Farstad Shipping Pte. Ltd.) whose purpose is to further strengthen their position in the Far East region.21The aim for the interview was to collect information about the offshore industry in South-East Asia. As Farstad supplies ships to the offshore segment, the team wanted to get an impression of Farstad’s attitudes towards IBS. Another aspect was to get an idea of the differences between western companies and Asian companies. The interview was conducted with Henrik Fitinghoff, General Manager of Farstad Shipping Pte. Ltd.
located in Singapore. The actual interview can be found in appendix 4.
Our interview with Mr. Fitinghoff was started with questions regarding the South-East Asian Offshore Market. Farstad currently has an office in Melbourne, Australia. He provided us with three factors that were decisive for the decision to set up an office in Singapore: 1. Tax Benefits 2. Singapore‟s position as a shipping hub 3. Using Singapore as a base for operations in Asia. Farstad does not operate in Indonesia or Malaysia at this time, but have been involved in these markets in the past. Mr. Fitinghoff gave three main reasons for this: 1. The
competitive environment in these markets, 2. The fact that these markets are dominated by more “shallow-water offshore activities” while Farstad‟s ships are created for “deep-water offshore activities” due to Farstad‟s position as a supplier of high-end technically
sophisticated ship services. In “shallow-water offshore” there is less need for the latest
technological ship solutions. 3. Only 10% of Farstad‟s fleet is currently employed in Asia, and they have found other markets where these ships are more applicable. Mr. Fitinghoff used Vietnam and the Philippines as examples of markets they are currently involved in. Fitinghoff continued by stating that Farstad‟s main market nowadays is Australia (nearly 50% of
Farstad‟s total revenue), which has quite recently discovered large fields containing natural gas.
21 http://www.farstad.no/default.asp ”Farstad Inngangsider”
