Meli Marine
Strengths
Meli Marine became profitable under David Tian through cost restructuring. The company moved towards owning only 30% of their fleet to reduce downside risk during economic turndown. In addition, the company invested in fleets with lower capacity, which provides them with greater flexibility in adjusting capacity and serving the intra-Asia market.
Meli Marine has established a strong position in the niche markets in delivering a select few perishable foods, chemicals and halal products. Their customer base is loyal to the company since Meli Marine has developed expertise in delivering these niche products.
Reasons to Enter
Growth – The Trans-Pacific route grew 48.9% from 2002 to 2007 and is projected to grow by 42.9% from 2007 – 2012. Meli-Marine customers have also expressed interest in needing services along this route. Therefore, Meli-Marine can capitalize on this growing market by buying the new ships.
Diversification – Meli-Marine is able to diversify their revenue streams and create a buffer during economic downturn in Asia.
Customer Needs – Meli-Marine will be able to provide their customers with end-to-end service, which provides their customers with more convenience and speed in delivery. Expanding from their feeder services.
Competitors – Meli Marine has the opportunity to take market share since there are only a few competitors.

Reasons not to Enter
Cost Structure – In an industry with razor-thin margins, achieving cost efficiencies is crucial for making a profit. In recent years, Meli Marine’s success can be attributed to the reshaping of their cost structure by owning only 30% of their fleet and maintaining smaller vessels. This provided Meli savings on their fixed costs and flexibility in adjusting their capacity to changes in demand. Purchasing and operating large ships will increase fixed costs and put a strain on