PTP planned to complete an expansion by 2004 to attract more shipping customers away from its competitor PSA. While existing PSA customers may not switch due to existing contracts, new customers or those with expiring contracts could choose PTP if it offers similarly competitive factors but lower prices. To succeed, PTP should keep prices below PSA's without price wars, expand capacity and infrastructure, emphasize connectivity, and leverage strengths in land operations and warehouse space.
PTP planned to complete an expansion by 2004 to attract more shipping customers away from its competitor PSA. While existing PSA customers may not switch due to existing contracts, new customers or those with expiring contracts could choose PTP if it offers similarly competitive factors but lower prices. To succeed, PTP should keep prices below PSA's without price wars, expand capacity and infrastructure, emphasize connectivity, and leverage strengths in land operations and warehouse space.
PTP planned to complete an expansion by 2004 to attract more shipping customers away from its competitor PSA. While existing PSA customers may not switch due to existing contracts, new customers or those with expiring contracts could choose PTP if it offers similarly competitive factors but lower prices. To succeed, PTP should keep prices below PSA's without price wars, expand capacity and infrastructure, emphasize connectivity, and leverage strengths in land operations and warehouse space.
What would happen post 2004 when PTP completes its expansion plan and goes offensive for more customers? The customers who have already renewed the contracts with PSA might not go for PTP. But some of the customers whose contracts expire then or newer customers looking at costs if other factors are similarly provided by PTP and PSA could think of going for PTP. So the customers for PTP should increase immediately after it is done with expansion. PTP should do the following things to attract and retain more customers:
Keep lower prices than PSA, without starting a price war
Continue building capacity and infrastructure Emphasize increased connectivity Utilize strengths in form of lad for land intensive operations such as car carriers and warehouse space