An Integrated Strategy Perspective on The Green Transition: A Case Study of Maersk as a First Mover in the Container Shipping Industry

Abstract

Moving towards 2050, container shipping companies face the strategic challenge of transitioning to zero- emission business models. Existing literature has established how companies entering new markets early can attain first mover advantages (FMAs). This thesis contributes by investigating how integrating market and non-market strategies can enhance the effectiveness of a first mover strategy in the green transition. Based on a qualitative case study, the paper investigates the market and non-market activities of Maersk’s first mover strategy as they attempt to decarbonize by 2040. The thesis finds that Maersk’s first mover market strategy provides them with potential FMAs due to securing green fuel supply, gaining branding effects, and benefitting from green financing. Using scenario planning, based on seven semi-structured expert interviews and secondary data, regulation and green fuel availability are identified as the key critical uncertainties determining to which extent the FMAs materialize. This paper finds that the payoff of Maersk’s first mover market strategy is dependent on timely, effective, and fair regulation due to the current price-cost-gap between fossil and green fuels and the freeriding of late moving competitors. To enhance their market strategy, Maersk utilizes a proactive non-market strategy, using political strategies to shape regulation towards an emission tax, compliance requirements, and a regulatory framework for fuel standards. The thesis finds that there are synergy effects between the market and non-market components of Maersk’s strategy. Appropriate regulation materializes first mover advantages and a first mover strategy provides information and legitimacy which enhances a proactive non-market strategy shaping regulation. Therefore, owing to the synergies between market and non-market components, an integrated strategy will enhance the performance of a first mover in the green transition. The findings imply the importance of including the non-market context in strategic management, since even a non- viable market strategy can succeed if combined with a suitable non-market strategy. Furthermore, the findings imply the importance of regulation in enabling the green transition and determining the payoffs of different transition timings.