In the new situation of shipping, only to find opportunities to create opportunities to reshape the competitive advantage of enterprises, the shipping industry as soon as possible out of the plight of sustainable development
Since the outbreak of the global financial crisis, by the global economic slowdown and the impact of excess supply capacity, the international shipping market continues to over-competition and extensive expansion of capacity of the new normal. Shipping business revenue decline, operating bleak, the general lack of competitive advantage.
Competitive Advantages of Shipping Industry
Well-known manager Michael Potter attributes the competitiveness of the firm to the competitive advantage of the firm, defining the competencies of the firm as “a business contributes to its behavioral benefits.” And in the book “Competitive Strategy” The five factors that affect the competitive landscape of the industry, namely, the five-force analysis structure: the threat of new entrants, the bargaining power of the purchaser (customer), the threat of substituting (or service), the bargaining power of the supplier and the existing competitor Confrontation – Potter Five Force Model.
According to the Porter five force model, at present, the global shipping industry competitive advantage is showing a comprehensive downward trend. It is expected that the full recovery of the shipping industry will be difficult and long – the competition between the existing owners intensified, the challenge of homogenization competition is escalating; the owner and the upstream customer (supplier), and downstream customers (purchasers) (BDI) hit a record low in December 2015, BDI record a record low of 471 points, and in May 2008 compared with the historical high of 11793, fell more than nine percent of the Baltic Dry Bulk Freight Index (BDI) Into the international shipping tariffs continue to shock in the cost line; new shipbuilding prices fell sharply, the ship’s ship assets continued to depreciate. According to the Clarkson New Arrival Price Index report, the new ship price index fell to a record low of 123 points in December, falling more than 30% from the historical high of 191 in August 2008; the “Internet +” business model will gradually weaken Homogenization, easy to copy the advantages of traditional transport mode.
For a long time, China’s shipping industry by the terms of trade, market liberalization and other factors, compared with the world’s shipping power, competitive advantage is relatively inadequate. As of the end of the 12th Five-Year Plan, China has a fleet of 160 million DWT, ranking third in the world. However, while the trade in goods maintained a huge surplus and the service trade continued to rise, the trade deficit was always high, with the tourism deficit leading, followed by the transport deficit. State Administration of Foreign Exchange released statistics show that 2014-2016, China’s international balance of payments of international trade in goods trade surplus of 501.8 billion US dollars, exports and imports ratio of 1.31: 1; trade in trade deficit of 225.5 billion US dollars, revenue and expenditure Compared with 0.49: 1, of which the trade deficit of $ 50.5 billion, the income and expenditure ratio of 0.42: 1, China’s transport industry accounted for only trade services accounted for 29.7% of total trade. International shipping is the main mode of transport of China’s foreign trade, transport trade revenue and expenditure pattern continues to score big difference situation, fully reflects the Chinese shipping industry’s international competitive advantage is relatively inadequate (see Figure).
Opportunities for the development of the shipping industry
In its “Competitive Strategy”, Michael Porter points out that “corporate profitability depends on its competitive advantage, and companies can influence their competitiveness through their strategies and influence the industrial structure and even change certain competition rules and win Competitive Advantage”. In the face of the competitive situation in the shipping industry, China’s shipping industry to get rid of the difficulties, sustainable development, the only way is to find and create opportunities for development, reshape the competitive advantage.
Opportunity 1: Policy-oriented advantage
The reorganization and restructuring of the central enterprises will lay the foundation for the establishment of modern enterprise management system for shipping enterprises and the promotion of endogenous competitiveness.
The emergence of competitive advantage, first of all depends on the enterprise’s endogenous competitive advantage. Endogenous competitive advantage is the basis of comprehensive competitiveness of enterprises, is to ensure that the core competitiveness of enterprises. At present, China’s shipping enterprises and international advanced counterparts in the cost of leading, talent gathering, rapid response, efficient coordination, strategic layout, quality service and information technology, there is a large room for growth. With the merger and reorganization of Chinese shipping enterprises, the reform of the company system is successfully completed, the market-oriented operation mechanism of the state-owned shipping enterprises will be gradually improved. The large state-owned shipping enterprises will introduce the modern enterprise management system in depth, carry out the mixed ownership reform, the board of directors, Hiring and other institutional construction, these policies and measures will greatly stimulate the endogenous power of China’s large shipping companies to improve business efficiency and efficiency.
The state introduced a series of support policies, will help shipping logistics enterprises cost reduction, strategic transformation.
In order to help the shipping industry out of the woods, the Ministry of Transport issued four major measures to support China’s shipping industry, intended to promote the strategic reorganization of shipping companies, enterprises will do strong and stronger; encourage shipping companies and upstream and downstream industries to implement strategic cooperation, To promote the further implementation of large-scale cooperation in the shipping business of differentiated business strategy to meet the needs of large customers personalized service to achieve the industry chain resources, services, benefit sharing vision.
In July, the State Council held a standing meeting to determine the tax cuts to reduce logistics costs, as well as to strengthen the national logistics hub and the important node collection and transportation facilities, five major initiatives. These initiatives will effectively reduce the logistics industry, including the shipping industry, including operating costs; at the same time, also for China to carry out third-party logistics to provide a good environment for the development of the shipping industry to modern logistics transformation, the formation of online and offline, transport, warehousing, loading and unloading , Distribution and distribution of information such as a complete supply chain service system.
Opportunity two: trade development advantages
The rise of China not only changed the world maritime trade pattern, but also for the rapid development of China’s shipping industry laid the basic supply.
China’s GDP in 2008 for the first time more than Japan to become the world’s second largest economy, and in 2014 for the first time exceeded 10 trillion US dollars mark, and the United States as the world’s only two breakthrough 10 trillion US dollars of the economy. Last year, China’s foreign trade import and export business continued to maintain the world’s largest export of goods and the second largest importer of goods trade status; over the same period, China’s port cargo throughput of more than 11.83 billion tons, foreign trade cargo throughput of 3.76 billion tons, Container throughput of 218 million TEU, for many years ranked first in the world.
In the Chinese government on the shipping logistics industry attaches great importance to the shipping logistics industry operating costs will be rigid, the cost advantage will be significantly improved; China’s foreign trade laws and regulations, management systems and trade terms will also be with the national trade status Get perfect. It is expected that the rapid development of China’s foreign trade in goods and the continuous trade deficit of transport trade will become the development advantages of China’s shipping industry. The trade deficit of China will also be fundamentally improved.
Opportunity three: the development of strategic advantages
The implementation of the “The Belt and Road Initiative” strategy will further release international trade and shipping needs and provide a broader range of development space for China’s shipping industry.
China’s “building the 21st century Maritime Silk Road” and along the infrastructure construction, as well as “docking national policy and development strategy” initiative, will greatly stimulate the East Asia, South Asia, West Asia, Africa, Europe and other countries of the economic vitality, Asia-Africa trade in the rapid development of China’s shipping industry has also created a good opportunity to expand the market in Asia and Africa. National Bureau of Statistics data show that last year, China and “The Belt and Road Initiative” along the country’s total import and export trade 62517 billion yuan, accounting for 25.7% of the total import and export trade.
The design blueprint for Xiong’an New District, Taiwan District and Urbanization will provide a broader and lasting market power for China’s shipping industry.
The establishment of the Xiong’an New District, the construction of the Taiwan area and the urbanization is the innovation of China’s economic development model. It will promote the rise of the Central Plains region, optimize the urban and rural structure, expand the consumption, form the economic zone of cross-administrative integration and promote economic structure, Promote the sustainable development of China’s economic and trade.
In the economic globalization, information electronic, trading network today, “change” has become the subject of the same market. In the development and change of things, the internal cause is the source of the development of things, determines the direction of the development of things; external factors are the conditions for the development of things, under certain conditions, the development of things have a significant impact. External factors must be internal and internal role.
The advantages of national policy guidance, resource environment and other opportunities are the external causes of the development of shipping industry. The endogenous competitive advantage of shipping enterprises is the internal factor, which is the key to determine the success or failure of enterprise strategy transformation. China’s shipping companies to seize the current development opportunities, and better play the role of the main business and national environmental advantages, the establishment of modern enterprise management system, in the talent, strategy, business model and other breakthroughs to improve business efficiency and efficiency, , To adapt to the development of the times to ensure the sustained and healthy development of enterprises.