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Monday, 13 April 2009

Message to all Somali pirates

Go and read Michael Porter on Competitive Strategy.

You have been operating in a low risk industry with high margins. With little investment cost and ongoing expenses paid to middlemen only due on success, this looked a good short term business proposition.

Entirely predictably, that has led to a significant number of new entrants, but has also an adverse reaction from responsible governments, with retaliatory action now taking place. With low barriers to entry and a greater threat of governmental retaliation, things are not looking good for current industry participants.

On a more serious note, to all pirates, if you are 300 miles out to sea in a covered life boat holding, when you are surrounded by the US Navy do the sensible thing and give yourself up.

Don't get them riled by asking for a $2 million ransom. If you are lucky they will laugh at you, but they might angry.

All things considered you pirates don't have a strong hand:

  • The US Navy can wait for as long as it takes. You only have whatever food and water is on the lifeboat.
  • The US Navy have unlimited backup. You have a few guys who need to sleep from time to time. The US Navy can keep you awake with loud music.
  • The US Navy will shoot you if you go out on deck, but you can only shoot them if they come in through the main hatch. The US Navy on the other hand probably have all sorts of gizmos that tell them where you are in the lifeboat and unlike you, they suffer no downside from shooting at you through the side of your plastic boat.

Abject poverty sucks, but it beats dying at sea. Come on guys. Face the facts. The odds are stacked against you. The smart money will pack it in now.

2 comments:

harmonyfuture said...

With the time lag your prescience is staggering. Excellent job!

Alex said...

Arr, me hearty, The Financial Crimes be the only place ye Landlubbers e'er need to go lookin' to know all ther is to be know'd 'bowt Somali Buccaneers!