Totalline Transport Harvard Case Solution & Analysis

Totalline Transport Case Solution

Issue Identification:

Then main issue which the Totalline Transport company and its management facing is the late appointment fees expenses paid to Electronics International as a result of goods delivered to the warehouse of Electronics International after the scheduled time. This late delivery is due to the detention of carriers a warehouse of Electronics International, which also cause opportunity costs to Totalline Transport Company.

Environmental Analysis:

Porter five forces:

Bargaining power of the suppliers (Medium):

The suppliers of the Totalline are the drivers and other staff members. 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.

Therefore the bargaining power of suppliers of Totalline company is medium, as they can play important role in success or failure of the company.

Bargaining power of customers (High):

The bargaining power of the customer is high depends as there are many transport providers in Canada.

Threat of new Entrants (High):

The threat of new entrants is higher in the industry as there are no barriers of entry related to the finance and other operating requirements. High capacity of market of transport in terms of revenues and customer companies in Canada also attracts new logistics companies from across the world. The risk of new entrants decreases the market share of existing companies operating in the transport market such as Totalline. New entrants also affect pricing as they offer cheap services in their start in order to capture market from the existing firms.

Threat of substitutes (Low):

The substitutes of Totalline services may be that the customers of Totalline make their transportation and logistics 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.

Industry Rivalry (High):

 The increase in the rivalry will affect the revenues and earnings of Totalline as the pricing policies of the transport companies will help in acquiring new customer or to loose existing customers if the prices are increase. The market share warfare decreases the margins of the companies in the market as every company will try to capture more and more customers, this force the companies to decrease their  margins to attract new customers. Margins also decrease when the quality of the services is increased as this increase the cost of sales, thus decrease margins.....................

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