Tired of the commoditisation of container shipping industry? Ready to break out of the same-old, same-old? Imagine feeling like you’re in control of your industry, setting the trends and standards instead of following them from behind. It’s possible to do just that, with the right approach. Read on to learn the steps for stopping commoditisation of container shipping.
1. Understanding Commoditisation in Container Shipping
Container shipping is the transport of goods in standardised containers across international boundaries. This type of shipping has become the preferred method of transporting goods since it is more efficient than traditional methods of transport. As the demand for container shipping services has increased, the cost of transporting goods has decreased. However, with this decrease in cost comes a risk of commoditisation.
Commoditisation is the process where a specific good or service becomes so standardized that it becomes difficult to differentiate it from other similar goods and services. This means that the pricing of goods becomes significantly more competitive and margins become thinner. For this reason, container shipping companies need to focus on building competitive advantages and developing innovative solutions, such as using technology to develop more efficient processes, in order to remain competitive and survive commoditisation.
2. Exploring Alternative Strategies to Avoid Commoditisation
Position Your Offering
To avoid being commoditized, it’s essential to position your offerings away from competitors. Brainstorm ways to differentiate your services by looking at the customer’s needs and reality, then find a core aspect of your company that resonates with them.
For example, look beyond price to demonstrate expertise, focus on a particular niche, or emphasize customer service. You can also offer a value-add by tailoring packages to suit customers’ goals, whether that adds convenience, cost savings or improved levels of service.
Focus on Quality
It’s also worth concentrating on quality. Aim to ensure the customer feels the difference in services, whether that’s through fast deliveries, comprehensive support, or reliable products.
Wherever possible, get feedback from customers to understand what they deem to be of high quality, and which features can be improved. By understanding customer preferences, unique features can be highlighted, and personalization elements like custom branding and packages can be tailored to suit the customer’s budget, needs and timeline.
3. Practical Tips to Stop Commoditisation in Container Shipping
Container shipping can be rather difficult for companies and organizations to keep costs low and remain competitive in order to remain profitable. Fortunately, there are a few practical tips you can employ to help stop commoditisation.
- 1. Establish long-term relationships: Establishing long-term relationships with customers and suppliers helps to secure them in the market, making them more stable and resistant to commoditisation.
- 2. Leverage benchmarking data: Keeping track of the current market’s prices, services and trends allows companies to be up-to-date on any rising competiton and changes in the market.
- 3. Invest in technology: Investing in technology such as blockchains, big data analytics and more can help companies stay current and properly respond to changes.
- 4. Focus on quality and customer service: Focusing on competitiveness, customer service and ensuring quality over quantity can improve a company’s standing in the market, improving their brand and helping to avoid commoditisation.
Providing premium, unique services is the best way to avoid commoditisation and stand out in the competitive container shipping industry. Meeting and exceeding customer needs, investing in technology, managing competitive data and building lasting relationships with customers and suppliers all provide a solid foundation for success in this industry.
4. Assessing Impact and Finding the Right Solution
It’s important to take the time to analyze the impact of an issue. Once you have an understanding of where the disruption is coming from and the areas that are suffering the biggest problems, you can begin to choose the best solution. Consider the objectives, stakeholders, and the ultimate success measurements when selecting a resolution.
Whether you’ve decided on a small-scale solution or a large-scale overhaul, stay open-minded and patient throughout the process. Always remember that you’re trying to solve a problem and be willing to adjust the strategy as needed to make it work. Talk with stakeholders, go deep with research and run tests to ensure the solution will help to reach the desired results. Your job is to identify the right steps and make an informed decision; take ownership and don’t be afraid to make a change.
- Understand the issue
- Set objectives and success measurements
- Analyze the data and research
- Choose the best solution
- Run tests and adjust as necessary
By tackling the commoditization of container shipping with the strategies outlined in this article, you can find the means to maintaining a competitive edge over other players in the market. As container shipping continues to evolve, the challenge of staving off commoditisation is ongoing. Taking up the challenge, however, is the best way to ensure your organization stands out and retains its hard-earned profits.