Section II: Critical analysis and recommendations for strategic direction of the chosen organization.
Current situation - Company background, past performance, and current position.
Findatruckload was established in 2009 by Andrew Bishop and Walter Bishop from trucking industry. In October 2013, the organisation is graduated from SODA boost development programme. The exit was growth oriented after which their sales boosted for 16 months (Findatruckload moves, 2014). The main objective of the company is to decrease carbon emission, improving freight efficiency, and eliminate running empty trucks. At the moment, Findatruckload is operating in growth stage. The total sales revenue is $3 million and has six full time staffs, 200 carriers utilise …show more content…
The reduction of empty trucks running helps carrier companies in the term of saving fuel costs as Walter Omsby says that, “some transport companies have reduced their empty running by over 50% using Findatruckload” (Findatruckload dumps, 2010). This is also sustainable as it reduces carbon emission, and Findatruckload is even commended for New Plymouth district council environmental and sustainability awareness award (Findatruckload commended, 2011). As the firm’s action help the community to save energy which is recognised by EECA for its energy efficiency award (Findatruckload commend for innovation, 2011). This works virtually which decreases transportation cost of commuting and administrative expenses. People will be able to work from home which also maintain work-life balance (Growing site aims, 2014). Its energy efficiency is also reflected by the fact that it saves transport companies advertising and marketing cost.
Core competencies (Analyse using the VRIO framework)
The core competencies of Findatruckload are cost effectiveness, sustainability and work comfort. These will be analysed through the VRIO …show more content…
The Findatruckload has find the niche which other companies have ignored. However, the threat of substitute product is quite high because customer can always choose to use other types of carriers, such as, shipping.
Bargaining power of supplier
In the transport industry, the main suppliers would be petrol retailer. Moreover, there are only few main petrol retailers, which mean that the firm has less choices to choose the suppliers. Therefore, the bargaining of supplier is high because nowadays, there is high demand for petrol consumption.
Bargaining power of Buyer
Buyer has its own options as he has various range of other carrier providers to choose from. While dealing with each other buyer can get lesser price than in other company. Therefore, the bargaining power of buyer is high.
Intensity of competitive rivalry
Since they grab the niche which other companies ignored, they managed to start the completely new system of transporting goods, as a result, making the “bypass attack” and escaping the competition. Therefore, the intensity of competitive rivalry is low.
Threat of new
Current situation - Company background, past performance, and current position.
Findatruckload was established in 2009 by Andrew Bishop and Walter Bishop from trucking industry. In October 2013, the organisation is graduated from SODA boost development programme. The exit was growth oriented after which their sales boosted for 16 months (Findatruckload moves, 2014). The main objective of the company is to decrease carbon emission, improving freight efficiency, and eliminate running empty trucks. At the moment, Findatruckload is operating in growth stage. The total sales revenue is $3 million and has six full time staffs, 200 carriers utilise …show more content…
The reduction of empty trucks running helps carrier companies in the term of saving fuel costs as Walter Omsby says that, “some transport companies have reduced their empty running by over 50% using Findatruckload” (Findatruckload dumps, 2010). This is also sustainable as it reduces carbon emission, and Findatruckload is even commended for New Plymouth district council environmental and sustainability awareness award (Findatruckload commended, 2011). As the firm’s action help the community to save energy which is recognised by EECA for its energy efficiency award (Findatruckload commend for innovation, 2011). This works virtually which decreases transportation cost of commuting and administrative expenses. People will be able to work from home which also maintain work-life balance (Growing site aims, 2014). Its energy efficiency is also reflected by the fact that it saves transport companies advertising and marketing cost.
Core competencies (Analyse using the VRIO framework)
The core competencies of Findatruckload are cost effectiveness, sustainability and work comfort. These will be analysed through the VRIO …show more content…
The Findatruckload has find the niche which other companies have ignored. However, the threat of substitute product is quite high because customer can always choose to use other types of carriers, such as, shipping.
Bargaining power of supplier
In the transport industry, the main suppliers would be petrol retailer. Moreover, there are only few main petrol retailers, which mean that the firm has less choices to choose the suppliers. Therefore, the bargaining of supplier is high because nowadays, there is high demand for petrol consumption.
Bargaining power of Buyer
Buyer has its own options as he has various range of other carrier providers to choose from. While dealing with each other buyer can get lesser price than in other company. Therefore, the bargaining power of buyer is high.
Intensity of competitive rivalry
Since they grab the niche which other companies ignored, they managed to start the completely new system of transporting goods, as a result, making the “bypass attack” and escaping the competition. Therefore, the intensity of competitive rivalry is low.
Threat of new