The digitalization of transactions as strategic measure for cost reduction in the breakbulk liner shipping industry

Alexander Bröhldick

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The objective of this Master s Thesis was to review and evaluate the different strategic options for breakbulk liner shipping com...

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The objective of this Master s Thesis was to review and evaluate the different strategic options for breakbulk liner shipping companies in terms of their potential to increase a company s ability to compete in the highly competitive market for containerizeable breakbulk cargos. The identification of such a strategy required for a detailed assessment of the prevailing market forces and an analysis of the internal strength and weaknesses of such companies from a resource-based and market-based-view. The evaluation of the different strategic options has been based on the Chinese-Polish Joint Stock Shipping Company as a primary example of a breakbulk liner shipping company. A cost/price leadership strategy has been identified as economically most promising strategy. In an exemplary case study it has been tested if measures of digitalization can be applied to support such a strategy and help breakbulk liners to improve their competitiveness. The case study has illustrated that particularly the digitalization of transactions offers significant potential for savings in terms of working time and costs not only for breakbulk liners but also their customers. This Master s Thesis is addressed to any reader with particular interest in strategic management in the breakbulk liner shipping industry and to readers who are interested in the application of concepts for digitalization in the transport industry.