The Current Reality - It's a Competitive Industry
Case Study
In the logistics industry, there is a low barrier to entry for a new competitor starting up. There are often new entrants, frequently led by ex-employees of larger firms, who think they can do it better. International firms can easily set up shop, and there are many small firms that start up.
Within the industry, larger firms gain advantages from investments in automations that smaller firms cannot afford. These larger firms have figured out how to be profitable with a high cost base and low margins, while offering a competitive rate at the same time. These firms establish a reputational advantage that holds existing clients and attracts new clients.
Small, growing firms fight hard to get seen and frequently rely on strong personal relationships to ‘poach’ and hold clients. In these firms, there is usually a person with strong sales skill or a compelling personality driving the growth.
Finally, there are many small firms operating with tight cash flows and looking for an opportunity to expand and grow.
