Strategic Analysis of CMA-CGM: Market Scenario and Strategies

Running head: CMA-CGM
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CMA-CGM
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1CMA-CGM
Introduction
The global competitive environment has become quite dynamic in nature and with
respect to this, it has become considerably important for the different firms to ensure that they
are successfully able to form strategies which will assist in the long term goal achievement of the
firm (Cma-cgm 2019). The given report aims at providing the strategic analysis of the firm by
discussing its market scenario and strategies as adopted by the firm.
About the company
The CMA CGM is a French Container transportation company which is involved in
shipping operations as well. The business can be considered to be a worldwide leading group
which makes use of 200 shipping routes between 420 ports in around 150 countries (Cma-cgm
2019). The company ranks fourth in order of the major giants as present in the field of container
and shipping behind the brands like Maersk, MSC and Cosco. The headquarters of the firm are
located in France and the current CEO of the company is Rodolphe Saade. The company was
found by Jacques Saade. The Parent organization of the firm is Merit Corporation. When
measured in capacity the company is third in line with a TEU of 2554264.In the year 2018, the
company earned a revenue of $21.1 billion and has around 750+ offices globally. There are
approximately 30000 employees working for the company. The name of the company is an
acronym for Maritime Freighting Company – General Maritime Company.

2CMA-CGM
Figure 1: Important Statistics
(Source: Cma-cgm 2019)
Current market scenario
The current market has been increasing considerably and at present the cargo volumes are
increasing by 4-4.5% as compared to the container fleet which is growing by 3.9% per annum.
Hence, with respect to the container segment, it can be stated that the balance between the
demand and supply can be stated to be particularly stable. However, trends in the Port Utilization
state that, the vessels are getting bigger in size, and this tends to place additional pressure on the
different ports and the remaining terminals (Pearce, Robinson and Subramanian 2000). In
addition to this, it can be mentioned that, the new markets have been emerging and the
importance of China as a market has evolved considerably. In lieu of this, the company has been
making considerate plans to expand its operations into the field of India in order to ensure
success. The current market scenario appears to be good for the container firms and there will
exist a considerable demand for the containers in the future.