Meli Marine Case Study Essay

†¢ Global commerce trade is primarly dependent on trans-ocean shipping; roughly 90% of general cargo is shipped via container Based on the container shipping value chain, there are several segments to expand and integrate the business and enter the market. This would provide benefit of business diversification hence decreasing risks According to the volume of growth of shipping lanes (Exhibit 6), every lane has steadily increased during the last years and is expected to grow further in the future Meli Marine’s Strategy to Compete in The Industry 1) Greater flexibility in the cost structure by selling older vessels, adding smaller more efficient vessels and reducing the total fleet owned (consolidation) 2) Shifting the focus from feeder to line services (intra-Asia). This brought the advantage to also cover spoke-to-spoke lanes and not only hub-to-spoke 3) Priorization: a narrower set of costumers and shipping products (commodities and perishable products). Hence, investment in specialized containers such as insulated, refrigereted, etc†¦ to back-up the business (core competence) 4) Meli Marine built out its own freight forwarder arm: seamless door-to-door service using an integrated chain service with other transportation systems, achieving a more complete service to the costumers 5) The previous strategies, in particular from 2 to 4, allowed Meli Marine to create its own industry standard that became an added value. In fact, costumers did not switch eventhough the competitors offered the same services to a cheaper price Meli Marine Performance Compared to Key Competitors †¢ Meli Marine is the smallest player in the market in terms of revenues and capital, mainly due to concentration on the intra-Asia lanes. Indeed, constant revenue growth (67%) indicates that there is less opportunities for expansion and growth in Revenues the intra-Asia†¦