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Hapag Lloyd's Fit with Porter's Generic Strategy: Differentiation for High-Value Customers

This case study analyzes Hapag Lloyd's fit with Porter's Generic Strategy in the shipping industry post-financial crisis. It explores their decision to adopt a differentiation strategy to satisfy high-value customers and meet market demands for innovation and unique products.

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Hapag Lloyd's Fit with Porter's Generic Strategy: Differentiation for High-Value Customers

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  1. Case Study: „HowDoesYour Company Fit WithPorter‘sGenericStrategy?“

  2. The Scenario • ShippingIndustry in 2010-2011 • Post-Financial CrisisOf 2008 • Insecure Market Situation; Low Freight Rates Hapag Lloyd ForcedToDevelop A New Strategy!

  3. Porter‘sGenericStrategy • Cost Leadership: Low Prices, Broad Market With Large Demand • Differentiation: CreatingUniquelyDesirable Products (USP) For A Broad Market • Cost Focus: Low Prices, Narrow Market WithDistinct Demand • Differentiation Focus: CreatingUniquelyDesirable Products (USP) For A Narrow Market

  4. Conclusion • Out Of The PreviousAnalysesWe Can Conclude: -> Broad Market Environment -> Customers Demand For Quality / Innovation -> Cost Efficiency Versus Service Standard DIFFERENTIATION

  5. Closing The Case: „HowDoesYour Company Fit WithPorter‘sGenericStrategy?“ • Hapag Lloyd Fits The Differentiation StrategyBecauseIt -> Satisfies High Value Customers -> Demands New InnovationsAnd Products -> Settles The Insecure MarketFitting Solution On Implementing The StrategyProperly: VIP Containers

  6. Einleitung: Situationsbeschreibung (Imagineyouare a shippingline in a situation….) HL vor der Entscheidung, welche Strategie in Zukunft zu befolgen ist Hat zudem neues Produkt vorzustellen (VIP Customers werden nicht gerollt) Strategien vorstellen = Porters GenericStrategy Welche Strategie ist die Beste für unsere Firma? SWOT Analyse = Welche Stärken/Schwächen/externen Einflüsse hat HL? Five Forces = In welcher Industrie befindet sich Hapag? Vergleich, Vorstellung der Strategie

  7. Porter‘sGenericStrategy • Cost Leadership = decreasing internal costsasmuchaspossible • Differentiation = creatinguniquelydesirableproducts / services • Focus = offering a specializedservice in a nichemarket • Cost Focus • Differentiation Focus

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