Analysis of Shipping Industry

Contents

|Question No. | |Page |
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|1 |Critically assess the key drivers of the Shipping Industry. |1 |
| | | |
|2 |To what extent are firms in the Shipping Industry likely to achieve what Hitt et al., |6 |
| |describes as above average returns? | |
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Introduction

Shipping is the primary means of international transportation of any essential raw material or finished goods. There are three main segments consisting of bulk carrriers, specialised cargo shipping as well as container shipping. This industry is fundamental to trade, globalisation and economic growth of a country.

In this case, we will be looking at the key drivers of the Shipping Industry and what are the factors that will influence this industry. After that, we shall look at how shipping firms going to achieve an above average returns and lastly we will critically evaluate the prospect of this industry.

(1)

General Environment Analysis

Key drivers are the key forces that will drive and shape changes of the industry in relation to the policy area or aspects of the future. While some key drivers cannot be influenced by human means, it will be more important to prepare and respond to the forces. With this in mind,