A Study on the Competitive Strategy of a Shipbuilding Nation from Shipowner’s Perspective 1)

A Study on the Competitive Strategy of a Shipbuilding Nation from Shipowner’s Perspective 1)

This paper reviews the recognition of shipping companies about the competitive factors of a shipbuilding nation. The recognition was measured by Analytic Hierarchy Process (AHP). The highly regarded factors could be competitive factors of shipbuilding industry for a shipbuilding nation. In selecting a shipbuilding nation for new orders, the shipping companies with strong financial status and market presence (Tier I companies) regard the competence of shipbuilder much higher (weight 0.669) than financing factors, i.e., commercial shipping finance (0.107) and ECA finance (0.224). As for the sub-criteria of shipbuilder, Tier I companies put emphasis on technology & quality of vessels (0.288) followed by contract price (0.194) and delivery (0.187). For competitiveness of a shipbuilding nation, a competition strategy should be a differentiation strategy focused on technology development and process innovation for the shipping companies with strong financial status and market presence. The differentiation strategy should be combined with cost leadership. ECA financing of a shipbuilding nation is to be a good supplementary factor to push its national shipbuilders a head of those in the competing shipbuilding nations.