Strategic development related to the Europeanization of UK logistics and distribution service suppliers

Although barriers to free trade across the European Union (EU) have been dismantled since the Single European Act was signed, some still remain which are likely to hinder UK distribution operators′ strategic developments in Europe. UK distribution operators have moved towards closer integration of Continental European operations with UK activities. Some groups are focusing on the European market to the exclusion of all other international markets, implementing the strategic lessons of Porter of cost leadership, differentiation and focus. Within the European market, UK logistics suppliers are tending to concentrate on the provision of the higher value‐added services of distribution to targeted markets, primarily those in northern Europe, located within the favoured “golden” band of countries. For the future, the EU is planning to integrate European road and rail networks. It is to be anticipated that this improvement in infrastructure will have positive effects on the European distribution industry. However, the trend towards protecting domestic industry will constrain the development of integrated markets in logistics services.