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Nils S. Andersen on Maersk’s Traditional Approach to New Markets

An Interview with the CEO

October 17, 2012
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In This Interview
Nils S. Andersen

At a Glance

Born in Denmark



Year Born: 1958

Education

Masters in economics, Aarhus Universitet

Career Highlights

2007–present, partner and group chief executive officer, A.P. Moller–Maersk Group



2001–2007, chief executive officer, Carlsberg



1999–2001, executive vice president and member of the executive board, Carlsberg



1997–1999, chief executive of the drinks division, Hero Group



1983–1997, various positions in marketing, sales, and general management including assignments in Germany and Spain, Carlsberg

Outside Activities

Member, ERT European Round Table of Industrialists



Member, EU-Russia Industrialists’ Round Table



Board Member, Inditex

 

For A.P. Moller–Maersk Group, the world has always been its market. Maersk, based in Copenhagen, has been carrying goods to the far reaches of the globe since 1904, so the shipping and oil giant is accustomed to dealing with all different kinds of customers and economies.

Nils S. Andersen, chief executive officer, says that Maersk’s global shipping heritage helps the company in today’s two-speed economy and across its varied commercial activities. While some Western companies struggle to adapt to fast-growing markets, Mærsk has never had a choice: Because its traditional ships cannot enter many ports in Africa, the company has had to change considerably to gain access to some emerging markets.

In promising markets, Maersk has cultivated people “on the ground” who know the scene, so that when the company is ready to expand in a new area, it already has a head start. In recent years, Maersk has been making moves in many such markets, building its asset-intensive ports and terminals as well as its oil-rig and oil-exploration businesses.

One of the keys to success in these markets, according to Andersen, is an intense focus on customers whose needs often differ greatly from those of customers in developed markets. Maersk generates this customer focus through a decentralized organization. Strong adherence to corporate values and culture bind the local businesses and markets together—and also give Maersk a built-in advantage as it expands. The company’s strong reputation, Andersen explains, serves as a powerful calling card when dealing with local officials in developing markets.

Andersen recently sat down for a discussion with Grant Freeland, a senior partner and managing director at The Boston Consulting Group. Edited excerpts of their conversation follow.