Alliance or acquisition? Strategies for growth in the container shipping industry, the case of CP ships

Abstract The global shipping industry is undergoing a transformation through the establishment of strategic alliances involving nearly all the major carriers. The near universality of the phenomenon would lead one to believe that being part of a global alliance is the only means of survival today. The case of CP Ships, the maritime arm of Canadian Pacific, provides a radically different model. CP Ships began as a small market player, but through direct acquisition has grown in size to be comparable with many of the large global carriers. It has remained focused as a niche player, venturing to confront the mainline carriers only peripherally. This paper explores the bases for CP Ship's success, highlighting the fact that alliances need not be the only path to survival in a global industry.