Meli Marine Case Study Solution
Meli Marine is a Singapore-based firm operating in the cargo shipping industry. At that time, Meli Marine was at a leading position of all carrier companies in the Intra-Asian market, however, it had not yet divided into the global market. There is an opportunity for Meli Marine to acquire 16 vessels from Teeh Sah Holding, which is an indirect competitor and had decided to exit the vessel operations business. At present, David Tian, the CEO of Meli Marine decided to enter the Asia-North America market as Meli is the only company who did not offer this global service in Asia. I have five questions for the CEO.
1. Is slow speed a good choice for the company to cut down …show more content…
Cost is one of the most significant sectors when the company operates a business should take into consideration. Lower cost means high profit. But how to cut costs? As for Jonathan Moss, “the measures which can cut costs such as reducing staff numbers, reducing working hours, or less training may cause risks, especially may lead to a shipping accident.” (Gregory,2015). Meli has invested in specialized containers, if crews lack of training that how to deal with the emergency, the company may lose a large number of profits. Furthermore, this may also make customers shift from Meli to other companies. So, it is important for Meli to think about how to keep safe while cutting down costs. On 12 August 2015, the explosion occurred at one of a container storage station located at the Port of Tianjin. The container was full of chemical materials. A spokesman for fire department announced that firemen had used water to quench the fire, as a result, the water had been sprayed on calcium carbide. This may lead to a bigger explosion (Rishi, 2015). The fireman lacks the knowledge that how to deal with such emergency.
5. According to Ducreut (2012), the final objective of the market analyzed is not only analysis the potential need for a new shipping lane or service, but also about the geographical and seasonality aspects. All these aspects will affect the potential earning ability of offering a new service in a new market. When the company determines the potential of a new service, the company can make the right decision about what kind of service should be offered to the