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A Comparative study on Korean and Japanese logistics industries' market structures : Focusing on subsidiary and third-party logistics companies

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  • A Comparative study on Korean and Japanese logistics industries' market structures
  • AHN,Woo-chul; ISHII,Shinichi; AHN,Seung-bum
  • Elsevier


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Title A Comparative study on Korean and Japanese logistics industries' market structures
Similar Titles
Sub Title

Focusing on subsidiary and third-party logistics companies

Material Type Article
Author(English)

AHN,Woo-chul; ISHII,Shinichi; AHN,Seung-bum

Publisher

[Amsterdam,Nederland] : Elsevier

Date 2013-12
Journal Title; Vol./Issue The Asian Journal of Shipping and Logistics:vol.29(Issue.3)
Pages 16
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Industry and Technology < General
Territorial Development < Transport/Logistics
Holding ScienceDirect
License

Abstract

The logistics industries of Korea and Japan have very similar growth patterns. In this study, we aimed to determine how market structures are changing in Korea and Japan for the past 10 years. We divided logistics market structures into logistics subsidiaries (2PL) and 3PL companies, and we analyzed whether performances such as turnover, profit, or their growth rate between the 2PL and 3PL markets are significantly different. Korea's market concentration ratio for the logistics industry indicates the rapid turn to a competitive, low-concentration market structure, whereas the comparable market structure in Japan has already entered a perfectly competitive market. The results show that rapid expansion in a subsidiary logistics market depends on a captive market that does not affect 3PL market size and profitability. In fact, that rapid expansion directly reduces the growth in the Korean or Japanese 3PL markets.