COMPETITIVENESS AND BUSINESS STRATEGIES OF SHIPPING COMPANIES

Abstract

Maritime transport, transport of people and freight by sea and the activities of shipping specifically are an important factor in the development of world and national economy. This thesis presents the way in which the shipping market functions, and an analysis is given regarding the importance of maritime shipping in the development of the world market and economy. Ship businesses operate in an extremely dynamic and complex market which is powered by several competitive forces. This paper gives an outline of competitive forces and factors which enable the shipping market and have an effect on the competitiveness of the shipping businesses, all of which stems from the way how the shipping business operates on the international market. In order to subsist on the turbulent market, ship businesses use different strategical tools with the aim of evaluating the market risks, opportunities and threats according to which they shape their strategies and business politics. A further analysis of the factors which have an effect on the choice of business strategies is given, along with other strategies that companies use as to gain a better position on the market. The empirical part of this thesis analyses the business operations of the largest Croatian shipping company “Tankerska plovidba d.d.” and one of the largest companies on a global scale “Royal Dutch Shell”. Using the interview method with the management members of the shipping enterprise “Tankerska plovidba d.d.” and the analysis of financial and business reports of the company “Royal Dutch Shell”, a research has been conducted regarding the strategies which both of the companies use in the market competition, based on which a general conclusion of the dynamics and laws of the ship industry has been drawn.