Research on Strategy Management of P Shipping Company in the Financial Crisis

Abstract

The global financial crisis in 2008, unexpectedly, has given a serious strike on the world financial system and the economic entities, which are still suffering heavily from its side effects. The shipping industry is one of the hardest hit fields. Many shipping companies have closed down because the relatively excessive shipping capacity and the dropped-down freight in the shipping market had caused the broken of the cash flow strand, and many others are still struggling for survival. It was even rumoring that the ‘survived’ shipping companies in the crisis would be the leading companies in the shipping industry. P Shipping Company has unavoidably encountered some difficulties during the financial crisis. But being benefited from the persistent company policies in risk control and timely adjustment of the strategy direction and operational tactics, the Company has achieved profitable 2008 and 2009 in total, stemming against the main stream of lose. Further more, it has successfully expanded the size of the fleet. In this paper, the remarkable mode against the financial crisis by the P Shipping Company is taken here for an example. The operational character of the shipping companies is considered. The relevant data and cases are analyzed. According to the current internal and external economic environment, the risk control practice in the high-risk shipping industry and the strategic direction to improve the competitive superiority of a shipping company are brought forward. After qualitatively analyzing on the important factors affecting the strategy management of a shipping company, the possible strategy projects are to be provided to the shipping companies.