Keywords:
INDUSTRY, COMPANY, Aalborg Industries, SHIP, MARINE, INCREASE, MARKET, TRADE,
SHIPYARD, Aalborg Shipyard, global trade
Digest:
...Global operations at Aalborg Industries - context, configuration, and capabilities Brian
Vejrum Waehrens and Dmitrij Slepniov T he aim of this case is to describe the transitions of
Aalborg Industries from a focused company with integrated operations into a global multi-
facetted company....
...Aalborg Industries has been an example to many companies, as it has managed to
maintain a leading market position in a highly competitive and increasingly globalized
marked and has managed to successfully reconfigure its operations set-up to meet new
contextual conditions....
...The case opens with an introduction to the industrial context of Aalborg Industries,
followed by a description of the company, its history and global footprint....
...Companies took advantage of emerging global markets, while companies in some
industries were put under increasing pressure to distribute value chain activities to take
advantage of global cost and competencies structures....
...This case description will present an example of a Danish industrial company in the
marine industry, Aalborg Industries, which has gained a leading position in its core markets
partly through a first mover advantage in its industry as a global player and partly by
maintaining its technological lead in the market....
...Aalborg Industries acknowledged and took advantage of the global market opportunities
and has become efficient, by means of global sourcing, offshoring, and outsourcing....
...Its global supply chain strategy has gained an increasing strategic importance within the
company as a means to maintaining its competitive edge through efficient and effective
sourcing, but also to mobilise resources to establish new business opportunities....
...The marine industry One sector that has benefitted from the trends of increased trade
across national borders is the marine sector and the many industries comprising this sector;
the shipyard industry, the suppliers to shipyards such as Aalborg Industries, the many
shipping companies who buy and use the ships, and harbours across the globe....
...Together, these companies comprise what is called the marine industry....
...The trade and focus on the Asian countries has increased, and so has the maritime
industry....
...In previous years, the tendency within the marine industry has been to build larger vessels
in a greater number in order to cope with the increased global trade....
...The rapid growth can be explained by increased competition among the shipping
companies on the market, and the fact that demand has increased globally....
...The halt in trade has created a large overcapacity at shipping companies such as Danish
A.P....
...There is a simple connection between global trade and transportation....
...When global trade decreases, the demand for transportation decreases as well....
...The marine industry is regarded as fairly conservative, this is mainly due to the high costs
and hazards associated with accidents or breakdowns aboard a ship, which means that
historical presence and certifications make-up effective entry barriers....
...Aalborg Industries Aalborg Industries is a Danish company specializing in boiler
engineering and production, with its headquarters located in Aalborg....
...Historical context of Aalborg Industries Aalborg Industries has a long history of
engineering, manufacturing, and international service....
