Tuesday, October 17, 2006

Verticle integration

FT on the story of Maersk:
"Eivind Kolding, joint chief executive of Maersk Line, says sharing an owner with many of the companies with which it does business helps the line to control its own destiny. Maersk Line has far more flexibility in how it modifies its services to meet changing conditions than other shipping lines, which are not so vertically integrated and therefore must always negotiate with partner lines, port operators and logistics companies."

This is also a study in corporate governance and globalisation.

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