Strategic profile
CFMF is the largest provider of consolidated Freightways services. Started in 1929 when Leland James convinced a few friends to invest in the recently started company. The company started to offer motor transportation services. Its services are better due to the use of advanced technology in their operation. The company is able to do better due to its quality services that it provides and its many branches that increase its availability. To counter the competition from its competitors, the company fairly prices its services so as to attract more customers. Its team of management is also highly skilled and very ready to take advantage of any business opportunity that they come across. It is due to these facts that it performed better than LTL.
CFMF was performing poorly in 1992 due to its inability to compete effectively. In 1991, its management was expecting its revenues and profit to increase but that did not happen. The strict regulations from the federal also contributed to the companies difficulties to compete. The market structure enabled the FCMF to take control of the market. LTL which was a close competitor of CFMF experienced some difficulties which led to the division of its markets into regional and national market. CFMF ventured into the regional market which was doing great as compared to the national market. Equipment, customer service, labor and attention of the consumers were things that all the companies were highly competing for.
Situation analysis
CFMF was able to compete by striving to offer quality services and also be merging with other small service providers so that it could beat its close competitors such as LTL. The federal interfered with its business activities by instituting strong measures to control pricing. However, some laws that barred new firms from entering into the industry were to its advantage. CFMF had a highly skilled labor team that ensured its customers get access to quality services. This made to the growth of its brand name and its customer base grew immensely. It also has best technologies that enables it serve its customers faster and efficiently. Its management should strive to acquire more companies through merging and also expand its services to make it a world class company (Porter 2006). However, its huge human resources expenses should be cut to enable it provide quality services at a fairy price and therefore compete effectively. This will enable it to counter any move by the competitors. Its diversified services have also enabled it to meet the needs, preferences and tastes of the consumers thereby taking a large share of the market. However, the company should strive to ensure that it is at the forefront when it comes to application of modern technology.
References
David, B. Y . (2009). Havard business school. CF motor freight 1992
Porter, M. E. (2006). Competitive strategy: techniques for analyzing industries and competitors.
