1 Business model of NLM and its evolution 3.
2 Market Segmentation - NLM's business strategy 4.
National Logistics Management is a non-asset based premium freight management company serving the automotive industry. It uses Expedited Management System - a proprietary software online/offline application to speed products to the destination, while providing quote-bid and service ranking expedite support. The web-based applications also offer shippers, consignees and the carrier network with web-based tools to plan, track and report on premium freight. While it is highly profitable, the growth is slow and the competition is immense. The owner has to decide whether to accept outside funding to speed up growth or to sell the company.
2. Problem statement.
NLM has the same dilemma that many small, owner-operated firms face as they attempt to create a global presence. Due to severe competition in the logistics industry NLM is forced to consider one of these options -.
1) Continuing to have slow, steady and organic growth by reinvesting profits.
2) Finding a venture capitalist and leveraging NLM's existing infrastructure, promoting rapid growth.
3) Going public and getting substantial capital for investment.
4) Partnering with a larger logistic company and complementing their business.
5) Selling the company.
Any of these directions can have a drastic affect on the long-term profitability and survival of the company. Although this is the major concern of NLM, there is also a problem relating to the lack of management depth.
3. Analysis of Problem.
3.1 Business model of NLM and its evolution.
NLM classifies as an Infrastructure service provider. It provides online/offline services to support logistics. Main source of revenue is the transaction fee; costs include the maintenance and development of IT infrastructure. Scott Taylor, president of NLM extended his business by entering the premium freight management business through the launch of NLM.