DALJIR has an opportunity to enrich its competitive position in the regional transportation construction logistics market by selectively focusing its target market in the food industry. The company has already had experience in servicing such clients and it believes that there is growing demand for reliable transportation solutions in this customer segment.
There are several potential customer segments that we will provide our transportation services to major customer segments include the food industry, pc and semiconductor manufacturers, and retailers. The table below outlines the current market size and growth estimates for these customer segments in Mogadishu, Nairobi and Dubai.
Large established companies in the afore -mentioned segments (especially in the food industry) have their own truck fleets. While smaller players outsource the transportation functions. The later vary in the scale of their operation, but have a steady demand for reliable transportations solutions.We will actively solicit such customers.
DALJIR will focus its marketing budget on selected industry niche. A narrow-served market focus will help strengthen the company’s reputation of a reliable transportation services provider and will generate favourable referrals. The major customer segment the company is focusing on the food industry. Companies in this segment have varying needs, and Daljir has already gained valuable experience serving such customers. The company management believes that by increasing it’s truck fleet it can capture additional clients and provide better service to existing client.
Industry concentration risk: The company is mainly focussed on food industry business in the African region. This position is favourable since the industry is fairly stable. Any slow down in the food production would have negative repercussions for Daljir. To mitigate this risk the company is looking at diversifying it’s air trucking and shipping business to include other industries as well.
Operational risk:Daljir recognizes the fact that there is an inherent risk in transporting cargo due to problem of insecurity in Mogadishu and Kenya sea. Any damage to cargo may undermine the profitable of the company. To reduce this risk, the company maintains all necessary insurance. Therefore in all their dealings there are no asterisks tucked away in communication, no grey areas where business processes are concerned, neither there are hidden clauses or agendas in their legal documentations.
The strategy of Daljir is to consolidate its good customer and client service by making timely deliveries, hiring the best drivers and having competitive pricing structure. The company’s goal in the next year is to become an independently-run business entity without having any contracted services. We would likely to manage our tracking operation, from hiring drivers to sourcing business. The company’s goal within the next five years is to operate a full- service trucking business with a fleet of trucks,“hot- shot” trucks and mini float loads. Daljir would like to be able to handle any job available at this stage.
Our major competitive advantage is the vast industry experience and solid reputation of its owners. This company is also well known among its clients for going that extra mile in the customer-service department, be it a small, medium or high, because we believe that building trust and good relationships would go a long way in making business successful.