Abstract
Strategy is important in shipping because it facilitates the identification of business opportunities, gives an objective view to solve business problems, provides a framework to improve internal and external collaboration, assists in controlling business activities, minimizes negative effects when threats arise, helps make better decisions, guides effective allocation of resources, provides methods to manage changes, and nurtures consistency in the management of the shipping business. Shipping firms have a hierarchy of interrelated strategies, each formulated at a different level, which can be classified as corporate strategy, business strategy, and functional strategy. Formulating and implementing shipping strategies involve answering many interrelated decisions: What to do? When to do it? How to do it? The development of shipping strategies involves the process of strategic analysis, formulating strategies, and implementation and control of strategies. To seek business opportunities, a shipping firm needs to answer the question of how to structure the organization to sustain growth. The structural options for shipping firms include organic growth, acquisitions, joint ventures, alliances, and networks.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
A classification society is a non-government organization that certifies a ship’s seaworthiness. Such an organization inspects design drawings and specifications before construction begins, supervises construction to ensure that standards are met, and performs periodic surveys to determine continued seaworthiness of the ship.
References
Asia Pulse (2005) Northern territory region, Senator line joins the fast growing INTTRA multi-carrier network. Asia Pulse 7 March 2005
Bergantino A, Veenstra WA (2002) Interconnection and coordination: an application of network theory to liner shipping. Int J Marit Econ 4(3):231–248
Brooks M (2000) Sea change in liner shipping. Pergamon, Amsterdam
Brouthers KD, Hastenburg P, Ven J (1998) If most mergers fail why are they so popular? Long Range Plan 31(3):347–353
Dyer J, Nobeoka K (2000) Creating and managing a high-performance knowledge-sharing network: the Toyota case. Strateg Manag J 21(3):345–367
Gulati R, Gargiulo M (1999) Where do inter-organizational networks come from? Am J Sociol 14(5):1439–1493
Hankook I (2004) Hanjin shipping hits record high operating profit. Korea Times 10 November 2004
Harlaftis G, Theotokas J (2002) Maritime business during the 20th century: continuity and changes. In: The handbook of maritime economics and business. Lloyd’s of London Press, London
Jawkins J, Gray R (2000) Strategies for Asia-Pacific shipping. Plymouth studies in contemporary shipping and logistics. Ashgate, Aldershot
Kogut B (1988) A study of the life cycle of joint ventures. In: Contractor F, Lorange P (eds) Cooperative strategies in international business. Lexington Books, Lexington, pp. 169–185
Kohli AK, Jaworski BJ (1990) Market orientation: the construct, research propositions, and managerial implications. J Mark 54(2):1–18
Lai KH (2003) Market orientation in quality-oriented organizations and its impact on their performance. Int J Prod Econ 84(1):17–34
Lun YHV, Browne M (2009) Fleet mix in container shipping operations. Int J Shipp Transp Logist 1(2):103–118
Miller TO (1992) A customer definition of quality. J Bus Strat 13(1):4–7
Pepall L, Richards D, Norman G (2005) Industrial organization, contemporary theory and practice. Thomson South-Western, Cincinnati
Porter EM (1996) What is strategy? Harv Bus Rev 74(6):61–78
Porter J (2005a) Booming boxship cycle show no sign of slowing. Lloyd’s List International 58862, 2 March 2005
Porter J (2005b) IT is key to CP Ships, says Hapag-Lloyd. Lloyd’s List International 58986, 30 August 2005
Robbins SP, Coulter M (2003) Management. Prentice Hall, Upper Saddle River
SchedNet (2005a) CMA CGM launches new environment web site. Shipping News 8 March 2005
SchedNet (2005b) Kuehne & Nagel is tops in logistics: chairman. Shipping News 7 May 2005
Song DW (2003) Port co-opetition in concept and practice. Marit Policy Manage 32(1):15–30
Traffic World (2005) Bigger ships, bigger lines. Traffic World 19 December 2005
UNCTAD (2004) Review of maritime transport. United Nations Conference on Trade and Development, Geneva
Waldman DE, Jensen EJ (2006) Industrial organization. Pearson, London
Walker G, Kogut B, Shang W (1997) Social capital, structural holes and the formation of an industry network. Organ Sci 8(2):109–125
Walker OC, Boyd HW, Mullins J, Larreche JC (2003) Marketing strategy. McGraw-Hill, Boston
Rights and permissions
Copyright information
© 2010 Springer-Verlag London Limited
About this chapter
Cite this chapter
(2010). Business Strategy in Shipping. In: Shipping and Logistics Management. Springer, London. https://doi.org/10.1007/978-1-84882-997-8_5
Download citation
DOI: https://doi.org/10.1007/978-1-84882-997-8_5
Publisher Name: Springer, London
Print ISBN: 978-1-84882-996-1
Online ISBN: 978-1-84882-997-8
eBook Packages: EngineeringEngineering (R0)