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 combine the business and enter the market. This would provide benefit of business diversification indeed decreasing risks According to the volume of crop of shipping avenues (Exhibit 6), every lane has steadily increased during the last years and is expected to grow notwithstanding in the futureMeli Marines Strategy to Compete in The Industry1) Greater flexibility in the cost structure by selling older vessels, adding smaller more efficient vessels and reducing the agree fleet owned (consolidation) 2) Shifting the focus from feeder to line operate (intra-Asia). This brought the advantage to also cover spoke-to-spoke lanes and not only hub-to-spoke 3) Priorization a narrower get 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 fortify seamless door-to-door supporter using an integrated chain service with other transportation systems, achieving a more complete service to the costumers 5) The preliminary strategies, in particular from 2 to 4, allowed Meli Marine to create its own application 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