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Transformative Outcomes

Shane Evans • November 25, 2024

A Case Study Approach

"We have two lives, and the second begins when we realize we only have one" -Confucius


Storytelling, analogy, and use of empirical examples can often help clarify complex or nuanced ideas. Let's explore how a subtle but strategic shift in how a business packages, delivers, or markets its offering can lead to transformative outcomes and unlock a second life. We made the case for shipmanagers becoming strategic asset managers, and here are three examples highlighting the power of innovative thinking:


The Apple Example: From Computers to Ecosystem


Apple Inc. in the early 2000s was primarily known as a computer company, with its hardware often competing in a commoditized market. The introduction of the iPod, iTunes, and later the iPhone marked a strategic shift from selling products to creating an ecosystem. The iPod wasn’t just a music player—it was bundled with iTunes, a seamless software solution that integrated with other Apple products. This ecosystem approach differentiated Apple from competitors and allowed the company to charge a premium for its products, despite others selling similar devices at lower prices.


Key takeaway for shipmanagers: By rethinking their role as ecosystem managers of ships (not just operators), they can emphasize the holistic, value-driven management they offer. Instead of charging piecemeal fees, they could reposition their expertise as a bundled service—more like managing an ecosystem of assets rather than individual components.



The Gillette Model: Selling Experiences, Not Just Razors


Gillette’s original business was focused on selling razors, a commoditized product. However, its shift to a subscription-based model with recurring income through razor blade sales transformed its business model. Gillette no longer marketed itself as just selling shaving tools but as providing a seamless shaving experience. By emphasizing the lifecycle experience—ease of delivery, superior technology, and guaranteed quality—they could charge more for their products.


Key takeaway for shipmanagers: Like Gillette, ship managers could reframe their offerings as a lifecycle partnership where the management fee isn’t about day-to-day operations but a seamless, optimized ownership experience that delivers superior value over the life of the vessel.



The Starbucks Example: From Commodity Coffee to Lifestyle Brand


Before Starbucks, coffee was often treated as a commodity, sold at a low price with little differentiation. Starbucks transformed this market by redefining coffee as an experience—creating a “third place” between home and work. This allowed them to charge significantly more than traditional coffee vendors, not for the coffee itself but for the perceived value of the experience.


Key takeaway for shipmanagers: By repositioning ship management as a comprehensive asset lifecycle experience, they can differentiate themselves from competitors who focus only on transactional operations. They’re not just offering a service but helping shipowners achieve long-term operational excellence and financial returns.



Applying This to Shipmanagement

These examples demonstrate the potential of bundling expertise and services into a cohesive value proposition, moving beyond a transactional mindset. Here’s how ship managers can adapt:


  1. Reposition the Service: Emphasize the long-term strategic benefits rather than daily operations. For example, “We don’t just manage ships; we manage their lifecycles for optimal profitability and operational success.”
  2. Monetize Expertise: Like Apple or Gillette, ship managers can package consulting, analytics, and lifecycle management into a premium offering, rather than giving them away for free alongside operations.
  3. Build a Brand Around Experience: Use the Starbucks model to turn ship management into a valued experience of confidence and success for the shipowner, not just a maintenance cost.


This approach helps ship managers see that while they may already offer elements of lifecycle management, rebranding and repackaging them as a strategic service—separate from basic operations—can significantly enhance perceived value and justify higher prices.



Thought Experiment: Is your business today more like a caterpillar or butterfly? Do you need to transform in order to achieve your full potential and reach new heights?


If so, let's talk.


Let's Talk
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