Nippon Express Competition
Now Viewing Nippon Express's competition in: Freight Shipping Services (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Who are the company's key customers? - Typical customers are shippers and receivers that need to move cargo within the US or internationally.
Does the company specialize in a specific type of cargo? - Service providers often specialize in particular industries with special shipping needs, like produce, electronics, chemicals, or clothing.
How does the company market its services? - Major types of marketing include online advertising and rate quotes, telemarketing, and face-to-face visits with potential customers.
How does the company generate sales? - Some firms have a full-time sales force, but branch managers are often responsible for generating new accounts.
Who are the main competitors? - Barriers to entry are low; competition can be local or large logistics solution providers.
How does the company use the Internet to facilitate sales? - Internet sales are common, especially for less-than-truckload (LTL) cargo.
Does the company have any long-term contracts? - Long-term relationships are usual, but long-term contracts are few.
Competitive Landscape
Demand is driven by domestic manufacturing output and levels of international trade. The profitability of individual companies depends on efficient operations, extensive relationships in shipper and carrier networks, and industry expertise. Large companies have advantages in account relationships and access to advanced logistics technologies. Small operations can compete effectively by serving a local market, specializing in cargo transfer with specific countries, and facilitating the transport of unusual goods. Average annual revenue per employee is $170,000.
Business Challenges
CRITICAL ISSUES
Demand Tied to Economic Cycles - Freight shipping services depend highly on the volume of domestic and international trade. Economic slowdowns or a drop in consumer confidence typically results in less products being manufactured and shipped; thus, less business for companies that specialize in the efficient transfer of cargo. Shipping volume falls faster than manufacturing activity during an economic slowdown, as distributors and retailers have less inventory turnover.
Dependence on Free Trade - Forwarders and customs brokers are highly dependent on the free flow of goods among nations. Embargoes, protectionist policies, and trade sanctions can limit or completely halt commerce among nations. Customs brokers that specialize in specific nations can see opportunities shut off entirely when free trade is blocked. Too much free trade can also harm the industry: the free flow of goods with limited customs barriers can reduce the need for experts to deftly navigate customs, tariffs, and filings.
Industries Where Nippon Express Competes
- Transportation Services
- Freight Forwarding Services(primary)
- Automotive & Transport
- Container Leasing
- Consumer Services
- Energy & Utilities
