The competitive environment of a service industry: the examples of the U.K.-Continent passenger sea ferry services

The paper examines an international service sector (passenger sea ferry services between the U.K. and continental Europe) from the perspective of its competitive environment. Porter's five forces model forms the basis of the analysis of the market illustrated by recent develoments. Within this context the barriers to entry into and exit from the market are considered in detail. Recently, there have been many changes in market structure, and with increased competition, including that from the Channel Tunnel, it may be necessary to pool services. This will improve ferry competition with other forms of transport, but will require the brand awareness of ferries to shift from the ferry company to the ferry service offer. The service offer will need to be more clearly defined.