Puutavaran kuljetusyritysten menestymisen strategiat.

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Acta Forestalia Fennica. 1993. 238: 1-83.

Title: Puutavaran kuljetusyritysten menestymisen strategiat.
Alternative title: Strategies used by timber truck transport companies to ensure business success.
Author: Mäkinen, Pekka
Publisher: The Society of Forestry in Finland - The Finnish Forest Research Institute
Date: 1993
Language: fi
ISSN: 0001-5636
URI: http://hdl.handle.net/1975/9344
Abstract: The general aim of the study was to determine how timber truck transport business succeeds in the competition within its sector. Particular attention was paid to the structure of the sector, and the effect it has on profitability in the sector. Furthermore, strategic groups were looked at in depth, as well as the competitive strategies of the most successful companies and groups of companies. The theoretical competitive strategy was operationalized. A total of 53 timber truck transport entrepreneurs were interviewed. The average age of the entrepreneurs was 51 years. Of the businesses, 35 % were partnership companies, 6 % were open companies and 59 % were self-employed. The businesses owned an average of 1.5 trucks, and at the time of interviewing their average age was four years. The entrepreneurs had little schooling or short-term training suitable for the line of business. Nearly nine out of ten entrepreneurs had no schooling for the line of business, and four out of five had no short term training. The attitude of the timber truckers toward their activities was more like that of self-employed persons than that of entrepreneurs. A total of 61.5 % of the entrepreneurs reported that they carried on entrepreneurship simply to assure themselves of a job. The operational profitability of the sector has been good in the years 1984 to 1990, and the business profitability fairly good. The median equity ratio in the sector has remained at about 20 % and the ratio of debts to turnover about 40 %. The sector has been more profitable than forest machine contracting primarily due to the barriers to entry into the sector. Cluster analysis, using Ward's method, was used for seeking out strategic groups. The length of the customer relationships proved a significant barrier to mobility. The most successful businesses used the competitive strategy of cost weighted focussing. This was done through optimization of the capasity utilization rate and through choice of correct customers.The strategic position for the most successful businesses was judged to be good in the future. Success in the future will require above all activeness and innovation ability.
Subject: planning, policy, transport, trucks, timber truck transportation, profitability, strategic group, competitive strategy, mobility barriers

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