Ship Purchasing: Characteristics, Empirical Evidence, and Market Attractiveness for Shipbuilders
This paper presents an analysis of the ship purchasing process and suggests to shipbuilders a methodology to identify the attractiveness of different markets in terms of location. Two analyses are carried out to identify if there is any correlation between exporting country and buyer size (e.g., are Korean exports focused on large clients?) and if the location of the production influences the purchasing decision of the ship buyer. We created a purchasing preference index (PPI) that can be computed for each type of ship and each builder-buyer country pair, and the PPI distribution over several countries is used to evaluate the entry potential for each country which, made up from market size, defines a simple market attractiveness measure. Further analysis is performed aiming to investigate company-level characteristics, such as the size of the players and loyalty in the relationship builder-buyer.