| Summary: | === The container shipping industry is essentially a service industry, based on the derived need of shippers wanting to transport their goods to buyers around the world. The industry relies on the volume of world trade and consequently is highly cyclical with its profitability being dependent, in large part, on the health of the global economy. It is also a highly capital intensive industry that requires large amount of investment in large scale fixed assets, such as ocean vessels, ports facilities, terminal equipments, global office networks and communication infrastructure.
The industry has been undergoing a period of restructuring and consolidation in the 1990s, reflected in both merger and acquisition and in the formation of global alliances. This paper will explore the literature on growth alternatives and competitive advantages of the industry. The specific case on NOL/APL growth path and its key success factors of strategy-performance relationship will also be identified. This paper will conclude by making some suggestions on longer-term strategy for the company in order to generate sustainable profitability and financial success for the NOL/APL group.
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