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Maersk: Steering Clear of the Commodity Trap

In: Danish Shipping in the 21st Century

Author

Listed:
  • Martin Jes Iversen

    (Copenhagen Business School)

  • Jesper Buhl

    (Copenhagen Business School)

Abstract

The Danish shipping and energy conglomerate, Maersk, has been the largest and most important Danish shipping company since the Second World War. Following a bold investment in containerization in the 1970s and 1980s and followed by a wave of acquisitions in the 1990s and 2000s, the company by 2010s possessed the position as the world’s largest liner shipping company. But the segment was challenged by several factors including slower growth in the demand for ocean-going transportation and increased supply of ultra-large vessels—a combination which gradually led to lower margins and difficult market circumstances. On top of this came the digitalization, which made it possible to produce final products closer to the markets and to unveil complicated value chains. Maersk was at a crossroad. The conglomerate and all its shareholders had observed an alarming trend in its share prices as looming industry disruptions and a commodity trap were on the horizon. The strategy of cost-cutting and portfolio optimization had not returned the company to a growth trajectory, and a new strategy for the coming century was needed. This chapter is presented as a case study with real-life examples of dilemmas and opportunities faced by the top management and the company.

Suggested Citation

  • Martin Jes Iversen & Jesper Buhl, 2020. "Maersk: Steering Clear of the Commodity Trap," Palgrave Studies in Maritime Economics, in: Danish Shipping in the 21st Century, chapter 0, pages 53-65, Palgrave Macmillan.
    • Handle: RePEc:pal:psmchp:978-3-030-43324-6_4
    DOI: 10.1007/978-3-030-43324-6_4
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