Introduction
The directional policy matrix is a good indicator of the health of the market the offshore access companies supply to. The results can give estimation on where the companies’ money is best spent.
Market Factors
The most important market segment, offshore oil and gas, has a growing production of more than 30% since 1991, and will drive expenditures up to $275 Bill in 2011. The offshore wind had a growth rate of 54% in 2009. The clients are relatively insensitive to price, provided that the offshore access solution is safe. The position of the providers of differentiated offshore access solutions like Uptime Alliance within the market was calculated 1.7%, 1% of the offshore wind market in Europe and 0.7% of the oil and gas market in the North Sea.
Competition
The market share participants have in this market develops slowly. Differentiated systems, although they are safer still have a small share of 4% of the market. Conservatism of the market and the many types of competition causes low attractiveness. The most appealing aspects of these companies for the market are the high capability and the promise of safety. In comparison to other differentiated systems, the differentiated system guarantees the highest uptime and is installed in 8 hours. Moreover the companies have already entered segments of the offshore oil and gas market such as Europe and Asia/Australia. Therefore the position of these companies compared to the competitors is strong.
Financial and Economic Factors
Supplying this market is costly; the cheapest way to enter the offshore access industry is buying a helicopter where the cheapest aircraft will be around € 200,000. Around 1-2 million Euros have to be paid for a differentiated system. Moreover experience is crucial in this innovative and technical market. Clients in this market request offshore safety rather than cheap operations. The consequence is that the market has low attractiveness in the financial and economical perspective.
Technological Factors
Since the offshore market is very technical, it is a complex environment to operate. Experienced and qualified personnel are needed to guarantee safe offshore transfer. Mainly because of this advanced technological environment, the market seems to have low attractiveness.
Socio-Political Factors
One major danger of the market is the threat of stricter regulations. This can consequently reduce offshore operations and demand declines. Without accidents, such as Deep Water Horizon, the threat of stricter regulations and public opposition will be small. Regulations in the offshore oil and gas industry can either be a threat or opportunity for these companies. Providers of differentiated offshore access systems can always focus on the offshore wind market. The companies have excellent relationships with their employees. Therefore, they have a strong socio-political position.
Conclusion
The high expenditures of the market in combination with the technical environment, huge capital needs and the strong competition conclude the market is medium attractive.