Impact of Competitive Strategies on Corporate Performance of Selected Shipping Companies in the Gulf Cooperation Council Countries

Abstract

In globalization, manufacturing and related services industries - with their respective logistics transportation and transactional delivery chains - compete in varying competitive conditions to capture market share. The widespread maritime logistics and shipping industry which facilitates the formation of trade alliances such as the Gulf Cooperation Council (GCC) countries is a case in point. This study explores why and what is lacking in its organizations and management in the shipping industry to retain its strategic competitive edge and what the slack areas of competitive advantage are, to capitalize on available opportunities in the Gulf maritime trade, often dominated by big branded-industry players who changed their financial, administrative and operating strategies to sustain the market changes that poses a highly competitive and dynamic business environment where prediction and stipulation do not work most of the times due to fluctuating rates of chartering ships that intimidate operations and unsettled bottom-line performances. The research questions seek answers from a random sample of 210 middle and senior management employees from Oman, Kuwait, Saudi Arabia, UAE and Qatar, based on a mix method that secures 6-focus demographic variables and 4-axis 1-set phrases questions whose responses each were analysed statistically to achieve study objectives. The overall findings suggest, among others, a prevailing business gap where GCC companies should diversify their fleet portfolio towards different sectors business while maintaining moderate growth in their existing sectors to enable diversified income and revenue generation to mitigate risks of declining market sectors.