Case Study: Melli Marine Is An International Business

984 Words 4 Pages
Introduction
The cargo shipping industry is an international business commerce. It is included four main segments: container shipping, roll-on and roll-off, bulk shipping and tanker shipping. The top 15 success industries focus their business on Asia-Europe and Asia-North America shipping lanes, which accounted for approximately 80% (‘Case Study: Meli Marine’ 2015). Meli Marine, another shipping industry in Singapore, has already been attracted to expand their international business into the Asia-North America. According to Meli Marine background and global trend, the following section will provide five main critical questions for CEO David Tian and then justify these questions. After that, the paper will end with a brief conclusion.
Critical
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As an experienced CEO in the shipping market, David Tian is responsible for the company operation. It is possible for the CEO falling into decision-making trap. The primary decision-making trap is the confirming-evidence trap. Hammond (1998) illustrates the bias of confirming-evidence would lead us to believe existing information, which have already received to mind while avoiding contradicts information. For example, imagining you are an America Manufactory Company’s CEO considering whether cancelling a planned offshore production. You are worried about the transportation cost and currency risk. Before you make the decision, you ask another similar company chief’s former action. He provides a strong reason to show the currency fluctuation. After that, you might fall into confirming-evidence bias. The reason you believe without a doubt is the existing information is vivid. Based on the competitor Teeh-Sah open their market in Asia-North America lane, it will attract Meli Marine to imitate and the success evidence depth influences Tian’s decision. Thus, the CEO should consider the decision-making trap to avoid …show more content…
Porter states pressure of existing competitors has strength power to limit the profitability of a company (Porter 2008). The common phenomenon is price competition. Base on the few changing cost for customers, competitors will cut down the price to win new customers (Porter 2008). In addition, the price war involves the power of buyers and suppliers. It is obviously for the price sensitive products. If customers could find equivalent container shipping industry in a lower price, they tend to choose other supplier and then capture more value (Porter 2008). Besides, the new entrants bring new capacity that puts pressure on the existing companies, especially the new entrants are diversifying. Another threaten is the substitute products, it provides diversity choice for customers. Rail, road, air and shipping are common transportation for cargo transport. Customers will compare them and choose the less cost and most efficient tool. Therefore, under such existing competitors and pressure, Tian need to find the methods to obtain

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