Totalline Transport Harvard Case Solution & Analysis

Issues Identification:

Totalline paid $7000 in last month against the late appointment fees and has lost significant opportunity cost related to the detention of the carriers and as result of this the drivers of the trucks, which can be used elsewhere.

Ecock has presented three alternative options, which may be helpful to sought out the problems. The first option is to ask electronics international to build two dedicated doors in the warehouse of the company so that the trucks of Totalline can deliver the goods easily, bypassing the existing queues and to go directly to those doors.

Second option is to apply the stickers given by Electronics International by the workers of Totalline Company.This will help drivers to just drop the goods and come back without any detention.

The third option is to deliver the goods of electronics International directly to the 33 electronics locations located in Ontario as 60% of electronics international shipments were destined to Ontario.

Environmental Analysis:

Porter five forces:

Bargaining power of the suppliers (Low):

The suppliers of the Totallineare the drivers and other staff. In general, the business image of the Totalline depends on the behavior and performance of the truck drivers and not only the business of Totalline but also the business of its customers as the products are delivered to the consumers of the products belong to Totalline’s customer.If the end consumer is not satisfied with the behavior of the workers of Totalline,then sales of the Totalline’s customer will be suffered.

The bargaining power of the suppliers also increases if the product of the suppliers contains any type of uniqueness, which would help the supplier to charge higher prices.On the other hand, there is no any uniqueness in the suppliers of the Totalline.

Bargaining power of customers (High):

The bargaining power of the customer depends on the number of customer as compared to the number of the supplier of the service and goods. If the numbers of suppliers are more in the market, then the competition between the suppliers will increase, which will help customers to increase their bargaining power.

There are many transport providers in Canada as about 100 competitors are operating in the industry; this has increased the bargaining power of the customers of the Totalline.The power also increases due to high risk of switching customers towards different company,which is the competitor of the Totalline. This risk will increase the possibility of the company to lose the market share and in declining revenues and earnings of the company.

Threat of new Entrants (High):

The threat of new entrants is higher in this type of industry as there are no barriers of entry related to the finance and other operating requirements. High level of market of transport in Canada also attracts new entrants from across the world. The risk of new entrants decreases the market share of existing companies operating in the market such as Total line. New entrants also affect pricing as they offer cheap services in order to capture market from the existing firms.

The threat of new entrants also increases due to lenient rules and regulations of the governments, as this will also attract the international transport companies to expand their operation in foreign countries like Canada.

Threat of substitutes (Low):

The substitutes of Total line’s services could be that its customers make the transportation services in house, which may be not easy as the cost related to this will be very high as compare to the outsourcing costs of this service.The transport service providers have economies of scales in this service, which allows the companies to get the service outsourced cheaply...........................

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