Case study Essay Example | Topics and Well Written Essays - 2000 words - 2

Case study - Essay Example On this end, much depends on how Maersk Line implements business strategy that would ensure efficient use of resources at their disposal to effect a sustainable change (Ferrulli 2005, p.26). The new business model that Maersk Line intends to implement is appropriate in terms of the company’s position as a leader in the shipping business. Compared to competitors, Maersk Line is in ideal position to capitalize on its stature as a world leader in container shipping to increase its clientele. In addition, the company deals in the shipment of various goods and this provides a competitive edge compared to other companies that specializes in the shipment of goods from one line. The company also boasts of an edge over competitors in regard to its extensive network globally and essential in improving the company’s sales across the globe. In terms of modernization, the company boasts of modern vessels compared to competitor’s vessels and this is important in enhancing the shipment of sensitive cargo. The strategy of focusing on long term contracts is essential in terms of maintaining a significant number of clients that deals in large shipment globally such as Nike and Walmart. The existence of extra add-value services as offered by Maersk Line is very essential in terms enhancing customer satisfaction, often disappointed with delays in the delivery of goods. In this sense, despite Maersk Line improving its competitiveness in container shipping, the challenges that still exist in the container shipping business require the company to adopt other business strategies significant in resolving the identified challenges (Slack & Fremont 2009, p.23). Differentiation as a business strategy is important in terms of improving a company’s advantage over competitors in the same line of business. This is important in attracting and maintaining previous customers or clients that a company serves, and the main features of differentiating involves reviewing a company’s available human skill, the techniques used to provide services to customers and brand name incapable of duplication by competitors, without incurring extra costs and risks. In addition, differentiation as a strategy entails setting out predetermined measures ideal in producing or delivering services to customers in a way that customers view as different (Slack & Fremont 2009, p.26). As a result, the strategies that Maersk Line intends to implement should target unique needs of the customers and in a way that provides Maersk Line a competitive edge. The current trend in container shipping business is hyper-competitive and adopting a formidable business strategy in terms of differentiation is necessary. Companies often compete by either adopting a low price strategy or implementing an efficient differentiation strategy that improves sales. In essence, differentiation as a marketing tool is important for any company’s survival in a competitive global market. W hile Maersk Line intends to address the challenges, it has identified in the container shipping industry to improve its competitiveness, it is also important to look at issues such as performance gap, as felt by customers in the