Strategic Marketing & Financial Management: COSCO & Evergreen Case

This report provides a detailed analysis of the marketing and financial management strategies employed by COSCO Shipping Corporation and Evergreen Marine Corporation. It begins by outlining COSCO's core business, highlighting key marketing efforts such as investments in the Piraeus Port of Greece and the acquisition of Orient Overseas International. The report includes a SWOT analysis of COSCO, identifying its strengths, weaknesses, opportunities, and threats. It further discusses marketing sins committed by COSCO, particularly concerning its focus on the UK market and handling of oil spill incidents. The analysis then shifts to Evergreen Marine Corporation, detailing its effective marketing campaigns and application of the Stanford Matrix Model. A SWOT analysis of Evergreen is also presented, followed by future sustainable strategies the company plans to implement. The report concludes with a reference list, providing sources for further research. Desklib offers a wealth of similar solved assignments and past papers for students.

Running head: MARKETING & FINANCIAL MANAGEMENT
Marketing & Financial Management
Student’s Name
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Author’s Note

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Table of Contents
1. Answer 1................................................................................................................................3
1.1 Description of the core business of the company.............................................................3
1.2 5 Best Marketing efforts...................................................................................................3
2. Answer 2................................................................................................................................3
2.1 Description of SWOT analysis.........................................................................................4
2.2 Importance of SWOT analysis in Strategic marketing.....................................................4
2.3 SWOT analysis of the company.......................................................................................4
2.3.1 Strengths....................................................................................................................4
2.3.2 Weaknesses................................................................................................................4
2.3.3 Opportunities.............................................................................................................4
2.3.4 Threats.......................................................................................................................5
3. Answer 3................................................................................................................................5
3.1 Marketing Sins..................................................................................................................5
4. Answer 4................................................................................................................................5
4.1 Brief description of the Company....................................................................................5
4.3 Stanford Matrix Model.....................................................................................................6
4.4 SWOT analysis of Evergreen...........................................................................................6
4.5 Future sustainable strategies.............................................................................................6
Reference List............................................................................................................................7

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1. Answer 1
1.1 Description of the core business of the company
Cosco Shipping Corporation limited is a business conglomerate from China who is
involved in multiple business sectors like integrated shipping, logistics, financial services as
well as manufacturing of equipment. However the core business cluster of the company at
present is container, dry bulk and across oceans, petroleum transport services.
1.2 5 Best Marketing efforts
in the initial half of the year 2019, the Shanghai-London Stock connect would
facilitate the Chinese corporations to raise money afresh on LSE through the issuing of GDR
which could give ample momentum to the foreign business, particularly for companies that
operates with London as one of the most important business hubs. As an outcome, in order to
make the best outcome of this business opportunity, COSCO is attempting to raise capital on
the London Stock Exchange.
The company has also acquired 51 percent stake in the Piraeus Port of Greece also
(Guo 2016). This is one important marketing stunt that would help the company in fostering
trade between UK and China. In fact, the Shipping Minister of UK also commented that
investments in the marine industry from places other than only UK or Europe would be
highly entertained.
Cosco China recently acquired the Orient Overseas International. As experts like Guo,
Jia and Li (2018), comment. This is an essential marketing strategy that is undertaken by the
company. This acquisition enabled the company to emerge in the third place from the fourth
place in the global list of holdings. This market acquisition helped to enhance the market
share of the company by 11.6%.

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2. Answer 2
2.1 Description of SWOT analysis
SWOT analysis can be defined at the framework that is developed for the evaluation
of the competitive position of a company by means of identifying the strengths, weaknesses,
opportunities and threats of the organisation in the current business market where they are
operating.
2.2 Importance of SWOT analysis in Strategic marketing
SWOT analysis takes in to account what is possible for the company to do as well as
analyse any potentially favourable or any unfavourable condition associated with the
products or services of the company.
2.3 SWOT analysis of the company
2.3.1 Strengths
 China Cosco Holding is the global leader in dry bulk cargo fleet
 It has the biggest container manufacturing facilities in the world
 Alongside being the leader in the domestic market, the company has significant
presence in the international markets like Europe and especially UK.
2.3.2 Weaknesses
 The operating profits for China Cosco Holdings is going down day by day
 There have been repetitive oil spilling incidents that has hampered the corporate
image of the company and this is going to have a long term impact on the consumer
acquisition rate
2.3.3 Opportunities

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 The optimisation of shipping routes and speedy expansion in the international markets
 The company’s attempts to excel in premier and customer driven services is going to
increase the customer loyalty towards the brand
2.3.4 Threats
 Use of cheaper technology by market rivals might make impact the operating cost
 The economic slowdown in the international market
 Rising Fuel prices
3. Answer 3
3.1 Marketing Sins
The extensive focus on the UK based market by China Cosco Holdings made them
lose their feat in the domestic business and owing to this divergence they have accounted a
7% loss in domestic business share even after a profit warning from the shareholders’ end.
Experts’ advice that Jiang Lijun during whose tenure the company suffered
consecutive losses and a distinct drop down in the mar jet share should have been made to
step down. However, the inefficiency of the higher management allowed him to stay in
governance so long.
The Marketing budget was supposed to be invested by the company after their oil spill
to brighten their corporate image so that the incident could not affect their customer loyalty.
However, internal managerial conflict did not allow the company any scope to give grave
attention to the spilling scam and as an outcome, there would be long terms and sustained
impact on the customer pool of the company.
4. Answer 4.
4.1 Brief description of the Company

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Evergreen Marine Corporation is one of the leading Taiwanese container
transportation as well as a shipping company.
4.2 Effective marketing campaigns of Evergreen Group
Evergreen reported a post-tax profit of NT$1,695,419,000 recently. Figures show that this is
already 35% higher than the maximum recorded profit during the 2000s. This is because of
the rigorous internal cost cutting strategy as well as the strategy of pursuing higher revenue
cargoes and also alleviating the service standards of the company.
4.3 Stanford Matrix Model
On 1st September 1981, the company had a one vessel named Central Trust. From that
position the company started service to the US which helped them to acquire business capital
and since then they started to include several other companies to establish a might holdings
company (Tng et al. 2017).
4.4 SWOT analysis of Evergreen
Strength-Extensively high growth rate
Weaknesses-Highly competitive market
Opportunities-Handsome venture Capital
Threats-Financial capacity is running low
4.5 Future sustainable strategies
In order to ensure future sustenance, the company is planning to establish safeguards
for a better and healthier working environment (Yang 2017). They are also innovating policy
for prevention of spillage and illegal oil discharge too.

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Reference List
Guo, Y., Jia, Y. and Li, Z., 2018, June. Analysis on container fleet competitiveness after
COSCO and China shipping reorganization based on multi-attribute decision making. In
2018 Chinese Control And Decision Conference (CCDC) (pp. 1020-1024). IEEE.
Guo, A., 2016. COSCO Shipping Acquisition as A Success Model for Greece-China
Cooperation. China's Foreign Trade, 4, p.014.
Tng, N.Y.W., Tay, E.Y.F., Chua, H.S., Ong, S.Q. and Foo, Y.J., 2017. Impact of new
alliances on transhipment port in Singapore, Tanjung Pelepas and Port Klang (West Port).
Yang, Y.C., 2017. Operating strategies of CO2 reduction for a container terminal based on
carbon footprint perspective. Journal of cleaner production, 141, pp.472-480.