Meli Marine Case Study Essay

Global commerce trade is primarly dependent on trans-ocean ecstasy roughly 90% of general cargo is shipped via container Based on the container expatriation value chain, there atomic number 18 several segments to expand and integrate the business and enter the market. This would provide benefit of business diversification thereof decreasing risks According to the volume of growth of shipping lanes (Exhibit 6), every lane has steadily increased during the coda years and is expected to grow further in the futureMeli Marines Strategy to vie in The Industry1) Greater flexibility in the cost structure by selling aged(a) vessels, adding smaller more efficient vessels and reducing the total fleet owned (consolidation) 2) Shifting the focus from birdfeeder to line military function (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 produc ts). Hence, investment in specialized containers such as insulated, refrigereted, etc to back-up the business (core competence)4) Meli Marine built reveal its own freight forwarder arm seam slight 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 priceMeli 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