IMD-3-1934 © 2008
Peter; Lorange, Lily; Zhang, Gary, Liu
In 1998, COSCO’s President and CEO Wei Jiafu started a “2 improvement” technique at COSCO: change from an international shipping provider to an international logistics operator based upon the shipping company, and from a cross-border company gamer to an international corporation.
To perform the improvement from a provider to a logistics operator, COSCO prepared to extend the market value chain and move into logistics, terminal operations, ship repair service and shipbuilding companies. This case follows COSCO’s improvement and advancement through to 2007 and takes a look at the difficulties ahead.
Subjects: Strategy; Transformation; International shipping; Innovation; General management
Settings: Shipping; China; World’s 2nd largest shipping company; By 2007, 80,000 employees; US$17 billion corporation; 1998- 2007