Competitive Strategies and Government Policies

Competitive Strategies and Government Policies

The shipping industry is an industry consisting in the delivery of objects from one place to another and trace back to the old days when no technology was available, but is able to evolve immensely because of the newer technology and innovations to update its services. Back in the days it would take weeks to deliver an object, now where objects reach their destination in one day because of the different methods in place. Some of the methods reside in automobiles, airplanes, ships, and trains, which facilitate the delivery of objects. Throughout its radical history other important changes concerning the shipping industry are evolving such as the invention of stamps, depending on the package a person must put a number of stamps to mail it, as well as the type of goods a consumer can ship since in the past there was a limit to the types of goods one could ship now the range of items has grown. Another important change is the communication from a shipping industry to its consumers, an industry has the capability to let is consumers track their packages to know where they are and an estimate of the time it will take for them to reach their destination. These changes have lead to changes in the shipping industry through offering better services and experience of the industry.

While new companies are entering the market on pricing and the sustainability of profits, the shipping industry is part of an oligopolistic market structure. This means a new company trying to enter this industry will offer similar yet different services. The industry is hard to enter with few firms already in the market. With this, a new company entering the shipping industry will create more competition and opportunities to improve the company. The hardest part for the new company is to develop their brand and customer loyalty. Because of the company’s existing brand and reputation the new company will not affect current practices but the existing...