Maersk's business-model transformation: Building a bridge over troubled water?

In 2016, A.P. Moller - Maersk (hereafter "Maersk") announced a strategic decision to separate its oil- and gas-related operations (sold to French Total in 2017) from the conglomerate and to concentrate on container logistics. However, instead of only focusing on sea freight, Maersk adopted a growth strategy aimed at making it an integrated logistics company offering customers end-to-end (E2E) supply chain solutions when the supply chain included containers. The strategy required substantial investments in land- and air-freight facilities as a supplement to the existing sea-freight business. Hence, Maersk embarked on a transformation of its business model from a focus on container shipping to globally integrated logistics. Under the slogan ALL THE WAY (later changed to ALL THE WAY TO ZERO to emphasize the importance of zero carbon transportation of cargo, including decarbonized shipping), the new value proposition offered to customers was to handle their entire container-related supply chain, including sea, land, and air transportation; storage; and customs clearance and other paperwork. The case provides relevant background information for a review of Maersk's E2E strategy (as per November 2023) seven years after its introduction. During the intervening years, the environment in which Maersk operated changed dramatically. Obstacles to the strategy arose and new opportunities to support it emerged. The case revolves around the question of whether Maersk should abandon its E2E strategy or continue it (possibly with some adjustments).

• Organizational transformation
• Business management