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Alfred Cheung 2011J all rights reserved
Decision Process for containerized reefer business
• Decision process• What business do we want• What business generates the highest profit• Where is our competitive edges
• Business selection components• Route components• Rate components• Cost components
Profit optimization
RouteRateCost
Biz selection
Start
No
Yes
Marketing & sales
Alfred Cheung 2011J all rights reserved
Market segmentation – one product to sellPrice
Quantity
Customer surplusSaving achieved by customersbuying product at price lowerthan their willingness to pay
The gross revenue is determined by the area
Alfred Cheung 2011J all rights reserved
Market segmentation – Multiple market segments to sellPrice
Quantity
Yield of multiple market SegmentsIs bigger than just one market segment / product to sell
ExamplesRefrigerated / CA cargoes
Hazardous cargoesBulk cargoes deploying special equipments
Inter-modal transportationCargo consolidation and x-docking
The gross revenue is determined by the areas
Alfred Cheung 2011J all rights reserved
Market segmentation comparison
Alfred Cheung 2011J all rights reserved
Disclaimer
This presentation contains theories and forward looking statements which reflect writer’s current forecast and estimates. The forward looking statements involve risks and uncertainties that could cause actual result to be different from those described in the forward statements. Potential risks and uncertainties include change of economic conditions, fluctuation in foreign exchange, new technology applications, market competition and regulatory developments. The writer assumes no responsibility for errors, omissions, or damages caused by or from the use of the information herein.
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Alfred CheungEmail: [email protected] / [email protected] ID: alfredcheungshuwing
