Analysis of porter maersk

These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. Based on Fern Fort University extensive research — some of the strengths of Maersk are — Superb Performance in New Markets — Maersk has built expertise at entering new markets and making success of them.

Analysis of porter maersk

The same commitment can be read in the following statement: One could argue that this leaves room for transfer pricing optimization, where by APMM could optimize its overall profit, however, this has not historically been pursued.

The industry analysis will uncover the unique value drivers in the offshore drilling industry and identify the forces that impact the profitability of the industry. Below, the framework for performing the strategic analysis can be seen: Own processing, Framework for strategic analysis, source: The external conditions are mostly factors that cannot be changed by Maersk Drilling, so their future profitability depends on how well they adapt to these conditions.

The factors to be analyzed are reflected in figure 10 above and are political, economic, sociological, technological, legal and environmental factors.

See industry value chain below: Industry value chain, source: Please see overview of Analysis of porter maersk market drivers in the offshore rig market below: Offshore rig market drivers, source: Likewise, the oil price is, in turn, the primary driver for the demand in the offshore drilling industry, thus, there is a clear link between the oil price and the offshore drilling activity, which is illustrated below: Own processing, Oil price vs.

By controlling approximately 3 quarters of the world hydrocarbons, OPEC can influence the price of oil by increasing or decreasing their production of oil. In addition to being the country in the world with the greatest oil resources, Saudi Arabia also has significant lower lifting cost of approximately USD 20 per barrel compared to more than USD per barrel for highly complicated deepwater and shale oil production in other parts of the world [21].

This allows Saudi Arabia to stay profitable even at low oil prices. The recent collapse in the oil price is a highly complicated matter which is driven by a number of aspects.

Historically, OPEC has in similar situations been the balancing factor by lowering production, however, this time OPEC decided not to balance the market and basically is producing more than what the markets can balance.

Instability, challenging regulatory environment, nationalization of property, terrorism, civil conflicts, strikes and acts of war, can all cause investments and operations to be put on hold or cancelled. Also, political decisions to drive cleaner sources of energy due to climate changes are impacting the industry.

Basically, the higher the barriers to extraction, this could be deepwater, harsh environment or a compartmentalized field, the more risk is added to the project. These unconventional types of extraction usually cost more than a traditional extraction in shallow benign waters or onshore.

Often, these projects cannot easily be shut down and then restarted. Please see below illustrated the historical developments in the oil price and the forecasted oil price by the World Bank: Own processing, Oil price and oil price forecast, source: This is corresponding to a compound annual growth rate of 6.

Analysis of porter maersk

Demand for energy is, therefore, largely driven by economic growth and rising population [23]. Please see graph below: Own processing, World GDP vs.

World Oil Consumption, source: Energy Information Administration [25] demand for liquids will increase with 1. Please see illustration below: Own processing, required increase in oil production capacity, source: Despite that fact that demand for energy is increasing, the share of oil contributing to satisfy world energy demand is decreasing while other sources like natural gas, coal, nuclear and renewables are increasing.

Maybe the most remarkably is the raise of renewable energy sources; however, it is important to remember that by the end oftotal renewable energy was only contributing with 2. In other words, it seems highly unlikely that renewable energy is going to replace the demand for oil and gas in the short to medium term.

But, in general, people have started to put more value to healthy living and are more concerned about the environment and this cultural change is likely to be the new norm.

As a result, there will certainly be a continued focus on the environment, social considerations and responsibility of societies and governments; resulting in increased focus on alternative energies wind, solar energy, biofuels, hydro, etc.

As new and more environmental friendly energy sources are developed and the cost of their production is reduced, the picture is going to get less favorable for oil producers. The time horizon for this to impact is, nonetheless, considered outside the scope of this thesis.This free Business essay on Essay: APMM and Maersk Drilling is Maersk Drilling is working in Michael Porter across Maersk Strategic analysis.

Analysis of Porter’s Five Forces for Shipping Industry Porter’s five forces is a framework for analysis of industry and development of business strategy, it also determines the competitive intensity and attractiveness of a market.

Porter five forces analysis From Wikipedia, the free encyclopedia A graphical representation of Porter's Five Forces Porter five forces analysis is a framework for industry analysis and business strategy development.

It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and.

Analysis of porter maersk

What Is Value Chain Analysis? Porter’s Concept of Value Chain Analysis. Value chain analysis focuses on analyzing the internal activities of a business in an effort to understand costs, locate the activities that add the most value, and differentiate from the competition.

Shipping Industry Analysis: A.P Mollar-Maersk. Print As a managing consultant of "A P Mollar-Maersk" shipping company Analysis of Porter's Five Forces for. Analysis of Porter’s Five Forces Porter’s five forces is a framework for analysis of industry and development of business strategy, it also determines the competitive intensity and attractiveness of .

Essay: APMM and Maersk Drilling - Essay UK Free Essay Database