A Study On Alliance Between Company C And Hanjin Shipping

With globalization and development in science and technology, few enterprises are now capable of totally rely on themselves only to survive and grow in their environment. Since 80's of last century enterprises in the western countries, especially those involved in transnational operations, have been adjusting their strategies on competition from confrontational competition to cooperative competition. One of the major approaches to such cooperative competition is alliance among former competitors. Being an innovation to the relationship among business organizations, alliance has become important means to enhance the competitiveness of an enterprise, and is dubbed as the most important innovation to organization ever since 20's of last century.In short strategic alliance is strategic cooperation among enterprises with each enterprise retaining its status as an independent legal person.In container shipping, an alliance is a joint operations agreement. For Company C, major motivations for alliance are acquisition and alliance in liner industry, economy of scales, cost cutting, prevention of excessive competition and development of new market. Alliance has brought huge benefits to Company C, and Company C has accumulated a wealth of cases of successful alliance over those years.On principle of selection of alliance partners Company C selected K LINE, Yang Ming and Hanjin Shipping as its key partners and Hanjin Shipping core partner for rationalization in year 2004 and 2005.Alliance with Hanjin Shipping help Company C absorb new capacity, cut fixed costs, extend coverage of direct service, increase sail frequency and improve schedule integrity. Company C worked out a series of measures to shot troubles in the course of implementing jointrationalization of Asia/Europe trade with Hanjin Shipping.