Research On Alliance Improvement Scheme Of M Shipping Company

Container transportation with its long history,large volume and low cost,is the main transportation method in international trade.Nowadays,with the deepening integration of world economy,international shipping logistics becomes more mature,and the competition of shipping markets becomes fiercer.In addition,in recent years the European and US economy increase slowed down,the oil and ship construction cost keep climbing,which makes the international container transportation market cool down.Facing the difficulty of the market,the need of change strategy becomes pressing for shipping companies.Now comes the time of big alliances,over 20 shipping companies around the world begin to seek partners to assemble strategic alliance,such as CKYE,G6,2M,O3.M is a global container company,rank top 10 in the world.In such background,it also faces the numeral difficulties as to improve company operation and to increase profits.This article will first introduce current status of container transportation market,shipping alliances as well as alliances mode developments.Then,it will introduce company M's business status and characteristics,especially the operation issues it faces and some of the improvement measures it took and the results.Considering company M's own characteristics,current container transportation markets development and trend,this essay will research the competitive environment of company M,use analysis of SWOT and Potter five forces,to disentangle the company's advantage and disadvantage and then introduce improving measures.Then it will form the conclusion that company M should adopt the strategy to join Alliances to further development.The article will also demonstrate how to choose alliances,how to proceed alliance and by analyzing alliances operations and performance to conclude that to establish alliances is effective for current shipping industry.Although the alliances has its own limitations,needs constant improving,this will be the basis for company M to make further development steps in the future.