Teekay Shipping Corporation case analysis

Abstract

Purpose – The competitive pressures of the past several years and the ongoing financial meltdown has driven most tanker owners and operators to rethink their business strategy. In addition, new green technologies are providing opportunities to reduce the environmental impact of the shipping industry. Given the parameters of the situation, this paper analyzes the case of Teekay Shipping, one of the market leaders. In particular, this paper addresses Teekay's specific advantages and their sustainability under rapidly changing competitive conditions. Design/methodology/approach – This paper utilizes a series of analytical methods to provide an exploratory understanding of Teekay's strategic positions. Teekay's business model will be analyzed in the context of social, technological, economic, environmental and political trends and SWOT analysis is also explored. Findings – The gaps in Teekay's business model in relation to growth opportunities and inconsistencies in its strategic efforts are revealed along with recommendations and conclusions. This paper contributes to a greater understanding of the complex and changing factors that shape the shipping industry, and should therefore lead to more effective nautical management. Originality/value – With the use of the discussed strategic management tools in this paper, which have proven successful in other industries, it can be expected to enhance Teekay's management of its business, proving another success for the cross-fertilization of ideas.