MARKET DOMINANCE TO CREDIBLE COMMITMENTS: SHIPPERS' STRATEGIES IN A DEREGULATED TRUCKING ENVIRONMENT

An attempt is made to shed light on the credible-commitment strategy as it evolved between shippers and carriers in the post-deregulation era. Based on the study of major Minneapolis/St. Paul shippers, it is hypothesized that shippers with rising sales moving perishable and mass merchandise items to commercial and retail outlets are likely to adopt a strategy of credible commitments, On the other hand, shippers with declining sales moving bulk foods and other raw materials to manufacturers are likely to adhere to market dominance. The two generic strategies that shippers can pursue in a deregulated trucking environment, namely market dominance and credible commitments are discussed. A number of strategies are derived regarding the evolution of shipper strategies: shippers with rising sales and declining or flat transportation costs are likely to make long-term credible commitments; the need to establish credible commitments is greater for businesses transporting to commercial and retail outlets; market domination is likely to be associated with declining sales, lower prices for the goods offered, and rising transportation costs as a percentage of sales; an emphasis on price and market domination is appropriate for bulk movers of food and other raw materials where stockpiling in the anticipation of future price increases occurs and on-time delivery is not as impoortant.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/1588960
• Corporate Authors:

  American Society of Transportation and Logistics

  1816 Norris Place
  Louisville, KY  United States  40205
• Authors:
  • MARCUS, A A
• Publication Date: 1987

Media Info

• Features: Figures; References; Tables;
• Pagination: p. 4-155
• Serial:
  • Transportation Journal
  • Volume: 26
  • Issue Number: 4
  • Publisher: American Society of Transportation and Logistics
  • ISSN: 0041-1612
  • Serial URL: https://scholarlypublishingcollective.org/psup/transportation-journal

Subject/Index Terms

• TRT Terms: Deregulation; Freight transportation; Markets; Motor carriers; Perishables; Raw materials; Trucking
• Subject Areas: Freight Transportation; Highways; Motor Carriers; Planning and Forecasting; Society; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 00474723
• Record Type: Publication
• Files: TRIS
• Created Date: Oct 31 1987 12:00AM