Abstract
Problem statement: Market globalization increases demand and the competition between firms. Ports as basic figurative nodes cannot remain separate from this change. Technological improvements, the increased demand of marine transports, the demand for new, bigger and more specialized vessels, has increased the competition among ports. Approach: In this competitive environment business mistakes may be proved fatal and marketing strategies arise as a means for differentiation. As such, modern ports suffer both from internal and external pressures. On the one hand, they need to exhibit management competency in the pursuit of suitable strategy and in the allocation of scarce resources. On the other, they no longer enjoy the freedom of a monopoly and therefore face a completely competitive market. Results: The selection of a suitable strategy is important for ports wishing to improve their financial results. The better financial capability for a firm means investing in the constantly changing shipping market. Economic prosperity also adds value to a firm that uses suitable marketing strategies to satisfy its customers. Conclusion: The present richer examined two alternative strategies-profit maximization and revenue maximization-and explores the factors that influence the application of these two strategies in the port industry. Data from 18 European ports were examined by multiple step-wise regression. The results proved the diversity of the two applications.
Highlights
The development of global trade, combined with market globalization, has brought about significant changes in land, air and sea transports
Sea transports account for 90% of total transports and constitute a critical part of transport policies, especially in the European Union as more than 90% of the EU’s external trade and some 43% of its internal trade is transported by sea (Chlomoudis et al, 2007)
Maritime transportation literature emphasizes in this particular role of ports as transitional logistic points
Summary
The development of global trade, combined with market globalization, has brought about significant changes in land, air and sea transports. The structure and operation of ports has become adapted to the needs and demands of combined transports. These needs that focus on rapid and effective cargo management, actual port product development, adaptation to the new conditions of port production organization and the regulatory and institutional framework at an international level, have led to a complete change in port goals and character. Technological progress and increased demand for sea transport generate the need for investments and new infrastructures at ports. Ports faced with an intensive competition offer a wide range of services in terms of the quantities and varieties of cargos managed daily, the types of vessels anchored, the connection to land transports, the storage and other additional services (Roll and Hayuth, 1993) and valueadded services
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