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Case Study

Danaos Corporation: Leading the way with innovation

By Peter Lorange and Colleen Lief

7 pages

May 2008

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Reference: IMD-3-1926

Diversification and innovation are the watchwords for Danaos Corporation – diversification of ship types as well as business segments and innovation in capital markets approach and in developing a new business line by leveraging its strengths. Founded by his father in 1972, Danaos was first a dry bulk handler with a modest fleet, then moved more toward maintaining a balanced fleet. Ultimately, Danaos became a major container ship company, unusual for a Greek shipping firm. The next generation of the family, Dr. John Coustas joined his father in the business in 1987. He brought with him extensive knowledge of IT systems and put these skills to work at the company. A subsidiary was started to offer these solutions to others in the shipping industry. A 2006 IPO helped the firm gain ready access to capital. Its philosophy of reliability and risk mitigation in regard to its cash flows and financial forecasting built confidence among investors. Danaos’ future was strongly linked to world trade patterns. How the industry and the company would evolve over time was yet to be determined.

Learning Objective

How a firm uses its core competencies to advance its business goals and develop new ones. How a modern approach to a traditional industry can be fashioned. How financial and capital markets policies can be integrated into an overall successful commercial strategy.

Keywords

Shipping, Technological Innovation, Diversification, Marine Consulting

Settings

World/global, Greece
1972-2008

Type

Field Research

Available Languages

English

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Teaching note

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