This book is about developing implementable strategies for shipping firms. It opens with an initial historical retrospective that highlights cases on A.P. Moller-Maersk and Leif Hoegh and Co. Here the reader is introduced to the global nature of competition in shipping, as well as the volatility of shipping markets. The book then turns to the question of how to play these markets. It looks at commodity based shipping company strategies for the bulk carrier, tanker container-ship and other segments. Here, the focus is on both going long-short, in-out, and maintaining a low cost base. Next is a discussion of operations versus asset play. The book analyzes Marsoft's forecasting methodology, with case studies on The Torvald Klaveness Group, Norden, Frontline and Teekay. The book then takes a close look at the challenge of driving one's strategy towards niches, i.e. on-commodity segments, with a spotlight on how to find a viable business opportunity and develop a defendable strength there. Examples come from I.M. Skaugen, Farstad Shipping, The Torvald Klaveness Group and Leif Hoegh and Co. Since overall corporate-wide portfolio strategies can be important in shipping, particularly if the various elements in the portfolio are relatively unrelated, the next part of the book turns to analytical approaches, citing several examples. Then follows a discussion of key organizational issues, particularly how to create and sustain more effective, predominantly network-based organizations. The penultimate subject is the important role the board of directors can play here. Finally, the role of family firms, and the future of shipping firms, is discussed, again with several rich examples.
Author(s): Peter Lorange
Year: 2005
Language: English
Pages: 212
front cover......Page 1
copyright......Page 5
table of contents......Page 6
FOREWORD......Page 10
HISTORICAL BACKGROUND 1......Page 16
TRADE- SPECIFIC IMPACTS ON THE MAJOR SHIPPING MARKETS......Page 41
TECHNOLOGICAL DEVELOPMENTS IN SHIPBUILDING AND SHIP DESIGN......Page 46
CONCLUSION 1......Page 47
MARKET VIEW......Page 48
CLASSIC SHIPPING SEGMENTS......Page 51
SHIPOWNERS' CLASSIC RESPONSES— PLAY THE MARKETS......Page 57
UNDERSTAND THE MARKET BETTER......Page 62
DOING GOOD EVEN BETTER......Page 67
BEYOND THIS—" LIVE WITH" COMMODITIZATION......Page 85
CONCLUSION 2......Page 88
INDUSTRY STRUCTURE IMPACTING THE DEMAND SIDE......Page 90
DEMANDS FOR LARGER " PACKAGES" OF SHIP SERVICES......Page 91
THE INVESTMENT SIZE PER SHIP AS A BARRIER TO ENTRY......Page 93
NON- COMMODITY BUSINESS GROWTH......Page 94
DISTINCTIVE INNOVATIVE COMPETENCES......Page 99
INDUSTRY STRUCTURE......Page 102
HIGHLY SPECIALIZED SHIPPING BUSINESSES......Page 103
FURTHER EXAMPLES OF NICHE STRATEGIES......Page 108
CONCLUSION 3......Page 122
THE CLASSIC PORTFOLIO MODEL APPLIED TO SHIPPING......Page 124
A PORTFOLIO MANAGEMENT WORK STATION......Page 131
A " NEW" PORTFOLIO MODEL BASED ON DEVELOPING SEVERAL BUSINESS PLATFORMS PROACTIVELY......Page 134
POLITICAL RISK AND THE PORTFOLIO STRATEGY......Page 139
CONCLUSION 4......Page 154
RELEVANT PREREQUISITES FOR SHIPPING ORGANIZATIONS......Page 156
NETWORK- TYPE ORGANIZATIONS......Page 163
CUSTOMER CENTRIC BUSINESS PRINCIPLES: HOW TO ACHIEVE CUSTOMER FOCUS......Page 168
A HIGH PERFORMANCE BUSINESS CULTURE......Page 172
THE NEED FOR " INTERNAL ENTREPRENEURS"......Page 176
DIVERSIFY OUT OF SHIPPING— OR NOT......Page 180
CONCLUSION 5......Page 183
UNATTRACTIVENESS FOR PUBLIC FIRMS......Page 184
FAMILY FIRMS: SUCCESSION PLANNING, PROFESSIONALISM......Page 187
FAMILY MEMBERS WITH DIFFERENT RISK PROFILES......Page 189
THE NEED FOR CAPITAL......Page 190
STRATEGIC ALLIANCES......Page 192
THE STOCK MARKET: " STEEL" VERSUS SHARES......Page 194
STABILITY......Page 195
SHAPING THE SHIPPING COMPANY OF THE FUTURE......Page 201
CONCLUSION 6......Page 202
REFERENCES......Page 206
