Drivers of cost and differentiation advantage for World Alliance Freight Inc.

Date of Publication

2011

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Business Management

Subject Categories

Business Administration, Management, and Operations

College

Ramon V. Del Rosario College of Business

Department/Unit

Business Management

Abstract/Summary

Freight Forwarding is a service used by companies that import or export their goods. A freight forwarder doesn‘t always literally move the freight, but it serves as the middle man between the client and the different carriers. It is the freight forwarder‘s job to guarantee that the client‘s freight is in good condition and to be sent to the right place at the right tim. Also to relieve their clients of the burden of having to make their requirements and legalities included in their imports or exports.

In the freight forwarding business, forwarders do the exact same thing with other competing forwarders. The researchers can say that in Porter‘s Five Competitive Forces Model, the threat of substitutes of products or services is present. In this study, the researchers would like to know what factors would set a forwarder apart from its competitors. World Alliance Freight Inc., a local freight forwarder, is consistently in the top 10 of the Civil Aeronautics Board (CAB) and in the International Aeronautics

Transportation Association (IATA) competing with multinational companies. Surprisingly they are the only perishables forwarder to enter the top 10. The researchers gathered data from WAFI‘s management, employees, and top 5 clients to determine what are the factors that set WAFI apart from its competitors and is currently positioned together with multinational firms despite that WAFI is only locally established. The researchers found that WAFI has been able to lower its prices competitively because of their good relationship with their airline carrier which is Cathay Pacific. With this, WAFI would have more control over the market prices and can also become the price leader when it comes to gaining new clients.

Presumably in the market, a customer would go to the cheapest company that would offer him quality service. In WAFI‘s case, they can compete in prices but when competitors become desperate, they pull the prices so low that it can destroy the market just because they don‘t want a potential client ending up with WAFI. So instead WAFI concentrated more on differentiating its services so that when money is no object, their quality of service can be used as an advantage for clients to get or stay with WAFI.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU16716; CDTU016716

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

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