Trucking Industry Faces Rough Road - Assignment Example

1. Weaknesses

However, there are still weaknesses that G&P has to face as well. There is a driver shortage because drivers have moved to construction and warehousing jobs. This is because drivers that are employed are required to put in a long hour which results in them spending more time on the job than they get to spend at home or otherwise in leisure activities. 14 hours of duty is required in a day’s work of which 11 are driving hours.

• Opportunities

G&P faces opportunities from the external environment in the form of room for growth in the trucking and freight business. Since there is a lot of demand for reliable freight companies that actually provide the quality service that they claim to provide in this globalized world, G&P has great potential for further growth and success.

1. Threats

Threats from the external environment include rising fuel costs. There is a base rate for fuel that is almost always non-negotiable. Trucks average 5 miles per gallon and there is no compensation for fuel costs for any empty miles driven or when the drivers stop to rest. There are also hurdles associated with government and agency regulations which sometimes make it difficult for a trucking company like G&P to operate by erecting bureaucratic barriers which slow operations down.  (Trucking-How Hard Can It Be?).

2. Environmental Analysis
3. External Environmental Factors

When conducting an analysis of the external environment we look at the competitors to G&P. There is Atlantic Trucking Co, Inc. and F & I Trucking Corp. Between the two of them, Atlantic Trucking Co poses a bigger threat of competition to G&P Trucking because they have been operating for roughly the same number of years in the same industry, with experience and results almost at par with each other. However, ATC’s operations may be considered more expansive in terms of the types of service provided.  

1. Current State of Business Target Markets

According to an article in USA Today, the trucking industry is facing some difficulties, mostly because of the driver shortage. The U.S government has predicted an increase of 31% in the amount of haulage sent by road from 2005 to 2117 and with a shortage of drivers, the trucking industry will find it hard for this increased workload to cope with. (Glen Creno and Dennis Wagner, 2008).

• Evaluation of current Marketing Objectives and Performance

The trucking industry should join the herd of business entities using the internet and social media to promote and market themselves. Websites and social media websites can be used to more effectively reach out to prospective customers and employees alike.

Many trucking companies have improved their current performance by improving their operating costs. G&P trucking needs to further align this area to changes in prices and trends so that it may remain profitable in the long run despite increases in fuel costs.

3. Marketing Objectives

G&P has been providing people with quality trucking service for the last 75 years.

Company Strategy as published on G&P’s official website:

“Our strategy is to have a focused approach to serving specific customers who need exceptional service to their target markets. This approach allows us to provide outstanding value for our customers and to be a preferred place to work for professional truck drivers.
The best people. The best value. The best service."  (G&P Trucking Company, Inc.).

In line with this company strategy, G&P strives to ensure that it provides its customers with the level and quality of service that they require to meet their needs and expectations and often surpass them. (Platinum Power Group).

4. Marketing Strategies
5. Product

The range of services that G&P provides should be increased to include rail and shipping to provide full-service coverage for customers.

1. Distribution

To increase the distribution, G&P can increase the number of terminals they load and off-load at. Also, the number or capacity of warehouses in operation should be increased so that distribution can be increased in turn.

• Promotion

Enhanced usage of websites, blogs, and other social media should be put into effect so that G&P can reach deeper into the market segments and so that a greater extent of communication and contact is possible between the company and its prospective employees and customers.

1. Price

Price should be set at a competitive level where G&P still manages to make a profit according to its rate of miles per gallon and with increasing fuel costs, while still remaining competitive enough with their prices to be able to attract and retain a loyal customer base.