COSCO: Economic Growth - Essay Example

Then in 1998 it further modified with its ‘Two transformations’ strategy which basically meant shifting from a mainly global shipping industry into a global logistics carrier and also, from a cross-border company to a multinational conglomerate (Zhang, Liu, and Lorange, p.745).

            The path that the company has taken has revolutionized the way it has achieved success but this did not come as an easy task, instead, this is most apparent in its diversity of operations that almost seem impractical. From a shipping carrier, it has verged into other allied enterprises such as international shipping, terminal operations, shipbuilding and repair, and logistics. But aside from this, they also have interests in unrelated undertakings like banking, financing, and others. This multiplicity has mostly been possible because of its characteristics as a state-owned enterprise. It would be more practicable as a measure of system integration for COSCO to delineate its focus on its core businesses in convergence with allied ventures. As it is, COSCO is standing resembling something almost near to a deck of cards with billions at stake in its numerous operations.

            To receive the optimum result, each sector must be integrated into the others by forming a network of sub-entities coming together through the core objectives that distinctly make it within the ambit of the COSCO brand. This poses somewhat difficulty in the current number of networks within the vast corporation but this is a necessity to secure the sustainability of the corporation that it will not only be able to overcome the cyclical pattern of industry one step at a time but also to create a highly sustainable customized strategy to its own benefit towards further and perpetual growth.