Maersk’s Non-Market Strategy Towards State-Owned Chinese Rivals

After the 2008–09 financial crisis, the Chinese shipping industry grew markedly and took on a more dominant role in global shipping. As a result, it was felt by some that China’s state-driven economic model had possibly created an unequal playing field. Under the political agenda of the Belt and Road Initiative, specifically the Maritime Silk Road, Chinese state-owned enterprises acquired strategic infrastructure assets, establishing a global network of shipping infrastructure through investments in strategically important ports and terminals. The growth of China’s shipping industry raised several concerns in Europe and for AP Moller–Maersk, the largest container shipping conglomerate in the market. By late 2020, some European governments were becoming more cautious; the European Union had increased restrictions on investments by Chinese companies, and European governments had become increasingly outspoken about China’s geopolitical ambitions. How could AP Moller–Maersk use non-market strategies to better position itself relative to increasing competition from China?

This case can be used in both undergraduate- and graduate-level courses on global strategy, international business, political economy, and international relations and in specialized courses on non-market strategy, emerging-market multinationals, operations management, and China’s role in international business and politics. Students can learn about the opportunities and risks posed by tensions between China and Europe and consider various actions, including non-market strategies, international companies can take to counter challenges posed by this tension and competition.<br><br/>After working through the case and assignment questions, students will be able to<ul><li>define non-market strategies, and explain how a major international shipping company can apply such strategies to effect desired changes in the business environment;</li><li> describe the main geopolitical tensions between China and Europe, and explain how these affect the non-market environment in which international firms operate;</li><li> compare and contrast the role of government in supporting national champions in China and in Europe, identifying implications for European firms operating internationally; and</li><li>outline potential industry developments resulting from strategic asset-seeking by Chinese state-owned operations.</li></ul>

• non-market strategy
• state-owned enterprises
• geopolitics
• shipping industry
• liner industry
• strategy
• international business
• oligopolistic industry