preview

Corporate Strategy – Meli Marine case study

Better Essays

Giovanni Costa Corporate Strategy - Individual Assignment 7th International MBA Part Time 1 Corporate Strategy - Meli Marine case study Giovanni Costa Giovanni Costa Corporate Strategy - Individual Assignment 7th International MBA Part Time 2 1) Container shipping industry has consolidated over last years from over 100 carriers to just 15 global players accounting today for roughly 80% of volume, mostly concentrated in Asia-Europe and Asia-North America shipping lanes (see exhibit 1 for details about volume growth over 2002-2012 decade). Entering trans-oceanic container shipping market for a regional established company relatively small compared to its main competitors (e.g. Meli Marine with respect to competition, …show more content…

All major players are already well established after industry consolidation and eager to increase their market share to reduce their per- container fixed costs. They are also shifting from pure vessels operations to other more profitable areas of the industry values chain (e.g. freight forwarder and container operations). Lastly, they are trying to build a mixed customers base (e.g. offering commodities and specialized services) in an attempt to mitigate seasonality and trade imbalance effects. Giovanni Costa Corporate Strategy - Individual Assignment 7th International MBA Part Time 4 To complement above analysis of external factors a couple of further considerations can be made about social and economic environment. From a social demographic perspective: Western countries population is aging in spite of Asian and emerging countries population still growing and well balanced in terms of age distribution. This trend, expected to last over next decade at least, will most probably exacerbate the tendency of Western manufactures to shift their production in Eastern countries, to enlarge from one side their market share in fast growing markets and reduce on the other side their production costs. As final result, volumes shipments imbalance over transoceanic shipping lanes is estimated to grow further

Get Access