The container shipping industry is essentially a service industry, based on the derived need of shippers wanting to transport their goods to buyers around the world. The industry relies on the volume of world trade and consequently is highly cyclical with its profitability being dependent, in large part, on the health of the global economy. It is also a highly capital intensive industry that requires large amount of investment in large scale fixed assets, such as ocean vessels, ports facilities, terminal equipments, global office networks and communication infrastructure.

The industry has been undergoing a period of restructuring and consolidation in the 1990s, reflected in both merger and acquisition and in the formation of global alliances. This paper will explore the literature on growth alternatives and competitive advantages of the industry. The specific case on NOL/APL growth path and its key success factors of strategy-performance relationship will also be identified. This paper will conclude by making some suggestions on longer-term strategy for the company in order to generate sustainable profitability and financial success for the NOL/APL group.

Alix, Y., Slack, B., & Comtoies, C. (1999). Alliance or acquisition? Strategies for growth in the container shipping industry, the case of CP ships. Journal of Transport Geography, 7, pp. 203-208.

Barney, J. (1991) Firm resources and sustained competitive advantage. Journal of Management, 17, pp. 99-120.

Conner, KR. (1991). A historical comparison of resource-based theory and five schools of thought within industrial organisation economics: Do we have a new theory of the firm? Journal of Management , 17, pp. 124-154.

Cullinane, K., & Khanna, M. (2000). Economies of scale in container shipping: optimal size and geographical implications. Journal of Transport Geography, 8, pp. 181-196.

Dekker, Neil. The Drewry Container Market Annual Report. (2006-2008). London, UK. Drewry Shipping Consultants.

Dierickx, I. & Cool, K. (1989). Asset stock accumulation and sustainability of competitive advantage. Management Science, 35, pp. 1504-1511.

Evangelista P & Morvillo A. (1999). Alliances in liner shipping: an instrument to gain operational efficiency or supply chain integration? International Journal of Logistics: Research and Applications, 2, pp. 21-38.

Evangelista, P. & Morvillo, A. (2000). Cooperative strategies in international and Italian liner shipping. International Journal of Maritime Economics, 2, pp. 1-16.

Foss, N. (1996). Strategy, economics and Michael Porter. Journal of Management Studies. 33, pp. 1-24.

Fossey, John (Oct. 1994). Birth of the global alliance. Containerisation International, pp. 49-55.

Fusillo, M. (2003). Excess capacity and entry deterrence: The case of ocean liner shipping markets. Maritime Economics & Logistics, 5, pp. 100–115.

Gardiner, P. (1997). The Liner Market, London : Lloyd's of London Press.

Grant, RM. (1991). The resource-based theory of competitive advantage: implications for strategy formulation. California Management Review, 33, pp. 114-135.

Hingorani, N., Moore, D., & Tornqvist, K. (2005). Setting a new course in the container shipping industry. Transportation Report. New York: IBM Corporation.

Imai, A., Nishimura, E., Papadimitriou, S. & Liu, M. (2006). The economic viability of container mega-ships. Transportation Research, E42, pp. 21-41.

Kim, S. M. (1998). Economics of scale in container shipping. Maritime Policy and Management, 25(4), pp. 361-373.

Kim, W. Chan, Mauborgne, Renee (2005). Blue Ocean Strategy : how to creat uncontested market space and make the competition irrelevant, USA: Harvard Business School Press.

Mahoney, JT & Pandian, JR. (1992). The resource-based view within the conversation of strategic management. Strategic Management Journal, 13, pp. 363-380.

McGee, J & Thomas, H. (1986). Strategic groups: theory, research, and taxonomy. Strategic Management Journal, 7, pp. 141-160.

Meersman, H., Moglia, F., & De Voore, E. V. (2000). Do mergers and alliances influence European shipping and port competition? Maritime Policy and Management, 27(4), pp. 363-373.

Midoro, R & Pitto, A. (2000). A critical evaluation of strategic alliances in liner shipping. Maritime Policy and Management, 27, pp. 31-40.

NOL Annual Reports 2001 -2008. July, 2009. http://www.nol.com/

Notteboom, T. (2004). Container shipping and ports: an overview. Review of Network Economics, 3(2), pp. 86–106.

Panayides, PhM., & Cullinane, K. (2002). Competitive advantage in liner shipping. International Journal of Maritime Economics, 4, pp. 189-209.

Panayides, PhM. & Song, D. W. (2001). Liner shipping strategic alliances as co-operative games: A conceptual framework. Proceedings of the International Association of Maritime Economists (IAME) Conference, the Hong Kong Polytechnic University, Hong Kong.

Porter, M. E. (1985). Competitive advantage: creating and sustaining superior performance, 1st ed, U.S.A.: Free Press.

Ryoo, D. K., & Thanopoulou, H. A. (1999). Liner alliances in the globalization era: A strategic tool for Asian container carriers. Maritime Policy and Management, 26(4), pp. 349-367.

Slack, B. C., & Comtois, R. M. (2002). Strategic alliances in the container shipping industry: A global perspective. Maritime Policy and Management, 29(1), pp. 65-76.

Song, D. W., Panayides, PhM., & Wang, T. F. (2001). Inter-organisational relations in liner shipping as a cooperative game. Eastern Asia Society for Transportation Studies, 3, pp. 247-262.

Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5, pp. 171-180.