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Clipper Navigation Transportation Company’s Services Case Study


Clipper Navigation is a transportation company that offers high-quality, low-cost services. Since it is in the transportation industry, it mainly provides services, while products fill a secondary role. However, services offered by the company extend beyond the expected necessary minimum and encompass tourism and the premium transportation segment. The former is ensured by the presence of observation areas and a sundeck aboard the ferries along with the opportunity of orca watching, while the latter is due to unprecedented speed for the industry. The products offered by the company include beverages and food served during the trip as well as likely souvenirs. Considering the offers made possible as a result of cooperation with other transportation businesses and tourist firms, it is possible to characterize the combination of products and services supplied by Clipper Navigation as of higher contingency than sufficient for its industry sector.

The horizontal partners of Clipper Navigation might provide transportation services that compete with those offered by Victoria Clipper ferries. More specifically, these can include marine transportation services, land-based transport, and air travel companies operating on the same or similar routes to those covered by Clipper Navigation. Other possible horizontal partners are tourist businesses that offer amusement trips, whale watching tours, and routes to sightseeing locations. The possible services of vertical partners are more diverse. First, these include transportation that goes beyond the capabilities of Clipper Navigation, e.g., railway companies and the aviation industry, which operate on a scale unreachable for ferries. The possibility to file a reservation for a route that aligns with the customer’s schedule is a huge advantage for the company as it increases customer satisfaction.

Next, organizations that can provide information on seasonal whale behavior (e.g., seasonal changes) and predict their presence in the area of operation might be useful partners. Any food or beverage served on board the ferry is a product that likely comes from a vertical partner. Likewise, souvenirs and memorabilia, which often accompany tourist amusement trips, might come from such a source. However, the most notable service that originates from a vertical partnership is the opportunity to book a ticket for a specific holiday tour to the mountains or a ski resort. As can be seen from the classification, the two types of services have an essential difference. Services from horizontal partners reside within the same business sector as those of Clipper Navigation, while vertical partners are either suppliers of crucial components for the business or operate in marginal fields. In other words, the latter are not in competition with the company.

Clipper Navigation’s internal characteristics that contribute most to flexibility are the speed of their ferries and the price of services. These satisfy the most basic of customer demands—the need for effective and fast transportation at low cost—and contribute to monetary flexibility. Reliability of schedules is another trait that is in high regard and, combined with the number of vessels, ensures high logistics flexibility. However, the most important feature is the company’s coordination with other transportation and tourist services, which results in product and service combination flexibility and arguably adds the most value to its services. Therefore, it requires operational activities on the part of the administrative department to ensure the precision and reliability of booking services. This segment can be improved by introducing visual aids for the customers to streamline the booking process and make it more comfortable. Since the service is in high demand among business travelers, it would also be beneficial to seek partnership with airlines that provide high-speed business-class flights to further improve the combination flexibility.

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IvyPanda. "Clipper Navigation Transportation Company's Services." November 21, 2020. https://ivypanda.com/essays/clipper-navigation-transportation-companys-services/.

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IvyPanda. 2020. "Clipper Navigation Transportation Company's Services." November 21, 2020. https://ivypanda.com/essays/clipper-navigation-transportation-companys-services/.

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IvyPanda. (2020) 'Clipper Navigation Transportation Company's Services'. 21 November.

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