A transportation market analysis is an act of enquiring into the workings of the transportation sector, and whether there is adequate space for a new entrant into this field. Every transportation company during its pre-establishment period will conduct a transportation market analysis in order to assess the potential reception and profitability of the company. This is best done through a transportation market analysis where the conclusions obtained can be then represented in the form of a report.
Sample Transportation Market Analysis:
Transportation market analysis conducted by: Jay’s Transportation Service Pvt. Ltd.
Date of report submission: 23rd June 2011
Transportation market analysis conducted by: Simon and Schuster Sons Pvt. Ltd.
Date of launching of new transportation company: 1st January 2012
Considerations incorporated in the analysis:
- To evaluate the competition which the new company shall face once it has been launched, particularly from goods trucks and heavy weight vehicles which operate along the same routes.
- To incorporate changes in policy, finance structure, route mapping, vehicle distribution, and employee assignment as a result of the transportation market analysis.
- To assess the potential five year profit plan of the transportation company, with the first two years being required to break even.
Method of analyzing the transportation market: Both linear programming and simulation have been used by our team of professionals to arrive at the following conclusions.
- The transportation company will require more than two years to break even as competition in the channels chosen by it is stiff.
- The number of vehicles to be deployed on the road must not be more than 5; otherwise the vehicle maintenance cost shall deplete the net income.