Case Study

Panalpina: Escaping the commodity trap (A)

7 pages
October 2003
Reference: IMD-3-1266

The case looks at Panalpina’s drive for sustainable competitive advantage to fight margin deterioration in the highly competitive European freight forwarding industry. Efficient capacity utilization, standardization of operating procedures, centralized purchasing of capacity, superior network management and effective cost controls had successfully differentiated Panalpina to date. The case considers whether this will suffice in the future, or whether the company should consider additional strategies to avoid a price war and protect their leadership position. The B case looks at the strategic implementation of the issues presented in the A case in consequent years.

Keywords
Differentiation, Price Competition, Service Marketing
Settings
Europe
1999
Type
Field Research
Copyright
© 2003
Available Languages
English
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