Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
994979 | The Asian Journal of Shipping and Logistics | 2013 | 16 Pages |
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.