Competitiveness of the logistics service sector in Hungary

If a fast-growing logistics provider claiming to have a remarkable market share goes bankrupt, its former customers, when choosing the next provider, will pay more attention to company size, growth and corporate performance indicators. This article examines whether these criteria affect one another and, if so, to what extent. We explore whether there is a direct or an inverse effect. We also attempt to determine the measure of competition in the logistics service-providing sector. It has been widely discussed whether time-based competition and the consequent enhancement of market concentration has favourable or adverse effects on the profitability, productivity and efficiency of companies. Theoretical and empirical research confirms that, in markets with moderate technological development and innovation, the margin approaches zero. The correlation between the price–cost margin and profitability is demonstrated. This article also proves that productivity can be increased by raising market share, but market share cannot be sufficiently enhanced via increased productivity.