The Strategies Meli Marine Uses for Competing - Essay Example

The cost of fixed costs was a factor affecting the attractiveness since it was more than the average total cost of the structure. It was due to expensive financing and maintenance, and any excess space wasted also resulted in a buildup of the fixed costs. An imbalance in global trade also created challenges in the container carriers (New Bioactive Alkyl Sulfates from Mediterranean Tunicates, 2012).

 Task 2

The strategies Meli Marine used for competing included increasing competitive intensity this was by container carriers supporting prices. For instance, if demand for containers went down, then vessels could be activated, so that fixed costs could be minimized. Another strategy was to have bigger cascading and ships this was to reduce the cost and to increase the resulting profits. Having larger ships could result in a “cascading effect”. The final strategy was the overcapacity threat. In the early years, overcapacity was an issue, but later it was implemented as the industries added capacity, faster than global trade could absorb it (New Bioactive Alkyl Sulfates from Mediterranean Tunicates 2012).

Task 4

Other key competitors performed differently from Meli Marine the likes of Evergreen Marine. It was leading to the market capacity with more TEUs than those of Meli Marine. The evergreen was recognized as being the best shipping line for several years. Wan Hai Lines was concerned with diversifying its client’s base and becoming a world carrier. It operated its terminals and competed in container and vessel leasing. Yang Ming Marine managed the vessel and container leasing, logistic unit and also had its terminal (New Bioactive Alkyl Sulfates from Mediterranean Tunicates, 2012).