A.P. Moller – Maersk SWOT and PESTLE Analysis

Strength

1. Global network of businesses: Maersk has operations in 130 countries with Maersk Line, the group’s primary transportation & logistics business having 16.3% global market share as of 2023. Its two main industries are transportation & logistics and energy. Transport & Logistics consists of Maersk Line, APM Terminals, Damco, Svitzer and Maersk Container Industry. The mission of these businesses is to enable and facilitate global supply chains and provide opportunities for customers to trade globally. In terms of energy, Maersk has divested its oil and gas business, Maersk Oil, to Total S.A. in 2018. The company's energy division now comprises of Maersk Drilling, Maersk Supply Service, and Maersk Tankers, focusing on sustainable and responsible operations in offshore drilling, supply services, and shipping. 2. Strong brand with skilled workforce: A strong brand presence is essential to the success of any firm. Maersk has the reputation of being a top player in the industry globally. It ranks first in terms of revenue when compared to its competitors. Maersk undertakes some of the most technically complex techniques to unlock new sources of energy. In order to enhance the performance of the employees, frequent competence building exercises takes place for technical, operational and support functions. More than 7,000 new employees joined A.P. Moller-Maersk in 2022, the majority joining the Technology and Logistics & Services departments. A.P. Moller - Maersk's capabilities were further enhanced by the 14,300 more colleagues who joined as a result of acquisitions and were successfully assimilated into the Group. The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Political

This section is available only in the 'Complete Report' on purchase.

Economic

This section is available only in the 'Complete Report' on purchase.

Social

This section is available only in the 'Complete Report' on purchase.

Technological

This section is available only in the 'Complete Report' on purchase.

Legal

1. Regulatory approvals delay decision making and business growth: Delay and uncertainty in regulatory approvals result in slowing down of growth and business integration. Maersk’s decision to acquire Hamburg Sud faced regulatory hurdles in Brazil, as Hamburg Süd owns Alianca Logistica, which is the dominant carrier in East Coast South America trade with 55% market share. Maersk already owns Brazilian flag carrier Mercosul Line and after Hamburg Süd’s acquisition its share would be between 75-80%. French carrier CMA CGM has entered into a deal with Maersk to acquire Mercosul Line, which will help in clearing regulatory approvals for Maersk’s acquisition of Hamburg Süd in Brazil. Additionally, A.P. Moller - Maersk and China International Marine Containers Ltd. (CIMC) have terminated an agreement for CIMC to acquire the Maersk Container Industry (MCI) due to regulatory challenges that the two companies were unable to overcome. The sale was one of many mergers and acquisitions in the cold supply chain as the industry continues to experience steady growth. The divestment was originally announced in September 2021 and was expected to close in 2022. The transaction was subject to regulatory approvals as a part of the closing process, but due to continued regulatory challenges, both parties agreed to cancel the sale.

Environmental

This section is available only in the 'Complete Report' on purchase.