San Andreas Logistics deals in the general transport of goods by road, rail, and air. The company, which was established in the year 1993, operates within the South American region. It also has offices around the world. The firm uses the ticker symbol, SAL, and transports products ranging from automobiles, chemical products, machinery, steel products, and agricultural produce.
Actions of Existing Companies to Prevent Entry of New Players
The transport and logistics industry in the larger American region is highly developed, and many companies are into the business. Further, new players get into the industry making the sector to be crowded, thus increasing competition. As a result, the existing enterprises have put measures to discourage new players from getting into the business. One method that these companies apply is the introduction of strict conditions that should be met before a company starts operations. For instance, one is supposed to meet all the required legal and economic obligations such as submission of tax returns for the last ten years and a clean criminal record in the past 20 years.
Potential Countermeasures by New Players
The businesses have no other choice apart from meeting all the conditions set by the existing companies. However, a potential investor can approach the directors of the association of logistics business owners and commit to meet all the requirements progressively. However, they could be asked to sign a commitment document that would be used against them if they breach the contract.
Response to Classmates
Hi Robin,
You wrote about the Hershey Company. In essence, the chocolate business is a seasonal one as you have identified in your article. Although you failed to address the measures that already existing companies could use to discourage new entrants into the industry, your article proves that you understand about the chocolate and the general confectionery industry. Good job.
Hi Fredrick,
I would like to point out that your article is perfect as you managed to address everything that the instructor required. From the paper, it is clear that you understand what happens in the entertainment industry. Furthermore, you recognize the issues that entertainment companies face, and you were able to explain it clearly. It is a great article.
Hi Gordon
I see that you understand about business strategy and how it is significant in determining the direction of the business. I like the way you have addressed the issues concerning business strategy, organization strategy, and IS strategy. It is clear that you did your research concerning the issue very well. Particularly, I like the way you discuss the relationship between businesses, especially competition. Your paper shows that you have the concepts of information systems, organizational strategies, and business strategies and how they can be applied to a business to create better revenues. Good work.
Hi James
