Question: Do pestle analysis from given data. Strengths - Newco has a wide customer base. From the case it seen that it has customers in the

Do pestle analysis from given data.

Strengths - Newco has a wide customer base. From the case it seen that it has customers in the three major countries in North America namely, the USA, Canada, and Mexico. This clearly shows that it has a strong customer base and it can help in expanding its network. It has loyal customers who can also help in strengthening their hold in the market. Newco uses three different modes of transportation to ship out the products. They are namely Waterways, Railways and Roadways. This gives customer a choice as to their shipment transportation which is great. Railways will have the most profit as it can take lots of goods and can travel greater distances faster than the other two. It is also cheaper than Waterways. Newco is a company which has 2 decades of valuable experience. This speaks for itself. Due to this they can handle tough situations and make the best of problems. Newco is a 4PL company. This shows that Newco finds the best solutions for the supply chain problems. Newco is also popular among its customers as it has good problem-solving skills. The customers believe that Newco can circumvent any problem which they face.

Weaknesses - As Newco wants to increase its grasp on the market and expand, they will have to start shelling out way more than they used to. This will put them in a tight spot. Every now and then Newco customer face issues related to late deliveries, damaged goods, and lack of use of technology as they don't use tracking devices. Newco is a budding company and is still in its developing stages. When we compare it to the market leaders, they outshine Newco. It is also not well recognized. The transportation mode with the greatest risk would be roadways. As there are many factors involved while transporting shipment through roadways like traffic in highways, accidents, weather conditions, Vehicle repairs, roadways can only take medium loads etc. These unpredictable factors make it very risky.

Opportunities - Due to the loyal customer base and its strengths, Newco can expand its business to other countries. This is increasing their profits and help them to function in a larger scale. Since it is in its budding stage, Newco can look for other companies like it and forma partnership. Due to this there will be mutual gains. This can increase the standard and stature of Newco in the market. Newco can invest in technology like IOT, Big Data Analytics, tracking systems to ensure that they get their forecasting right and this will result in lesser delays in orders. Newco can form Asset based Partnership as it will strengthen their hold over the market and increase their reputation as well.

Threats - Since there are some problems related to the deliveries of the shipments and the quality of the products which are being shipped, the customers might be unhappy and can shift to other providers. This will result in a huge loss for them. As the company is dealing in 3 different countries, the rules and regulations will change with respect to the countries. In the USA, there are different laws for different states as well. This will greatly affect the transportation of the shipments, the shipment size, and the shipment itself. As the fossil fuel are an exhaustible resource, the prices of Petrol, Diesel, Natural gas will certainly increase. This poses a threat as the net cost of the transportation would rise. The competitors of Newco are other Logistics firms which have been doing this for a long time. They want to maintain their grip over the market and don't want to lose it. This will ensure that they will do everything in their power to overcome Newco and maintain their position.

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