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.

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.

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