Penske Porter's Five Forces
Penske At A Glance
Founded in 1969 by Roger Penske
Joint venture between Penske Corporation, Penske Automotive Group and General Electric
Over 700 locations in North America
20,000 associates
We maintain more than 200,000 heavy, medium, and light-duty vehicles
Core Values
Employee longevity – a result of our training, recognition & rewards
Culture of measurement and accountability
Growth-oriented practices and Innovative thinking
Constant focus on quality and safety
Clean and organized operations
Strength in Transportation
Transportation, Automotive, Performance, & Private Equity
Transportation Industry
The U.S. transportation network serves more than 300 million people and 7.5 million business establishments across 3.8 million square miles of land. Moving raw materials and finished goods between production and consumption centers, this freight network is a vital component of commerce in the United States (U.S. DOT 2010)
Market Structure
Oligopoly market * National * Regional * Local
Porters Five Forces
Competition
What do truck rental customers think about.
Price?
Customer Service?
Roadside assistance
Bargaining Power of Customers * Can’t pass on costs to customers * Customer expectations * Compete on price * Price Elasticity * Kinked demand curve * Utilization
Threat of Substitutes * Common Carriers
Benefits
Costs * Regional vs. Long Distance * Opportunity Costs
Bargaining Power of Suppliers
Bargaining power is in the hands of the Suppliers
Suppliers have many customers
You can focus on core business initiatives and gain insight to manage your fleet needs
GMC, Ford, Freightliner and International Trucks.
Large companies with many customers and large operations.
Business is not dependent on Penske.
Benefits
Many substitutes
Threats of New Entrants
High start-up cost
Low Margins
No diversification of product lines
Penske
Founded in 1969 by Roger Penske
Joint venture between Penske Corporation, Penske Automotive Group and General Electric
Over 700 locations in North America
20,000 associates
We maintain more than 200,000 heavy, medium, and light-duty vehicles
Core Values
Employee longevity – a result of our training, recognition & rewards
Culture of measurement and accountability
Growth-oriented practices and Innovative thinking
Constant focus on quality and safety
Clean and organized operations
Strength in Transportation
Transportation, Automotive, Performance, & Private Equity
Transportation Industry
The U.S. transportation network serves more than 300 million people and 7.5 million business establishments across 3.8 million square miles of land. Moving raw materials and finished goods between production and consumption centers, this freight network is a vital component of commerce in the United States (U.S. DOT 2010)
Market Structure
Oligopoly market * National * Regional * Local
Porters Five Forces
Competition
What do truck rental customers think about.
Price?
Customer Service?
Roadside assistance
Bargaining Power of Customers * Can’t pass on costs to customers * Customer expectations * Compete on price * Price Elasticity * Kinked demand curve * Utilization
Threat of Substitutes * Common Carriers
Benefits
Costs * Regional vs. Long Distance * Opportunity Costs
Bargaining Power of Suppliers
Bargaining power is in the hands of the Suppliers
Suppliers have many customers
You can focus on core business initiatives and gain insight to manage your fleet needs
GMC, Ford, Freightliner and International Trucks.
Large companies with many customers and large operations.
Business is not dependent on Penske.
Benefits
Many substitutes
Threats of New Entrants
High start-up cost
Low Margins
No diversification of product lines
Penske