Major global logistic companies are focusing on establishment of logistics network and expansion of their services in order to satisfy the logistics demand required by global business customers.
In addition, while overseas expansion of super-large logistics companies is in acceleration, investment patterns have been diversified into direct investment, joint investment, affiliation and M&A.
Compared to advanced global logistics companies, domestic logistics companies are absolute inferior in overseas branch and network.
Especially, logistics companies in Korea are evaluated to have vulnerabilities in internationalization and informatization, it must be improved to reinforce the international competitiveness.
In order to overcome the limitations of domestic logistics market, actively cope with changes in the global logistics environment and enter the emerging markets, it is essential for our logistics companies to reinforce their global service capabilities.
Accordingly, the aim of this study is to examine the current overseas expansion status of international freight forwarders in Korea and latest trend of global logistics market.
Also in the midst of rapidly changing logistics circumstances, an effective strategy for overseas market expansion of international freight forwarders to grow into global companies and secure international competitiveness will be suggested.
The purpose of this study is as follows.
First, overseas expansion strategy of international freight forwarders in Korea are to be analyzed by examining the meaning and characteristics of international logistics business and by understanding the current status of their overseas expansion.
Second, overseas partner network status of international freight forwarders and determinants considered during the establishment of overseas branch are to be discussed.
Third, strategic methods for overseas expansion of international freight forwarders are to be suggested.
Strategy to bring successful overseas expansion of international freight forwarders include specialization of logistics service, construction of a collaboration system among small and medium logistics companies, securement and cultivation of professional human resources on international logistics, and simultaneous expansion of customers and logistics companies.
In order to make overseas expansion of an international freight forwarders successful, it is necessary to accommodate for the needs of customers through specialization of service and to maximize the preemptive effect based on professionalization of logistic service areas, regions of service and transport modes.
Small and medium logistics companies that intend to expand into the global market must form a collaboration system in order to overcome low service capability, capital power and brand awareness compared to major companies.
Global capability is necessary, as well as securement and cultivation of human resources appropriate for localization.
Since human resources with creative ideas, communication ability and global mind-set are essential to cope with quickly changing and particular needs of global logistics service, global and local activities of logistics companies must be supported by nurturing professional manpower for local and international logistics.
Joint overseas expansion program for customers-logistics companies promoted by the government and relevant institutions must be actively utilized in order to secure logistics volume, which is the core factor of managing risks and increasing possibility of success in overseas market entry.