• Logistics industry comprises of warehousing, courier, shipping,

road, rail and air cargo.

• Collaboration of Supply Chain, Product Management and

Distribution.

• Numerous application of logistics industry like media,

entertainment, banking, retail, information technology and
manufacturing sector.
 Porter’s Five Forces Analysis
 Power of Suppliers
 Suppliers have less bargaining power .
 Suppliers are the automobile industry who provide light weight
vehicles, forklift to trucks and cranes.
 These suppliers are found in abundance in the market.

 Power of Buyers
 Consumers expect to get the shipment faster, more flexibility,
transparency along with less cost.
 Minimum differentiation factor and low switching costs gives a lot of
bargaining power to the buyers
 Porter’s Five Forces Analysis
 Competition in the Industry
 Internal competition (Unorganised transporters) along with intense
rivalry in the industry is too high.
 Due to low differentiation, the companies are competing with their
prices and quality of services.
 Also presence of international players and low entry barriers
increases the competition.
 Competition is mainly based on price and quality of services.

 Potential of new entrants

 Technology has provided platforms to new business models.
 Offer interactive benchmarking of the rates of the existing air and
shipment companies and match them in their available capacities.
 Ubercargo in Hongkong.
 Porter’s Five Forces Analysis
 Threat of Substitute Product
 The only substitutes are offered for transportation but comes with
extra cost attached to them. Hence customers don’t have much of
alternate options for the services provided by the logistic industry.

Globalisation and reduction of trade barriers have really boosted up the growth of Logistic Industry.
In addition to that, the advancement of technology in transaction, communication and product
development have been beneficial along with the use of e-commerce and GPS has helped the
companies to improve up on their outreach.