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The role and importance of transportation in supply chain
The role and importance of transportation in supply chain
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“What would the competition between an air transportation and a rail transportation in Thailand be like in the future?”
Impossible to deny that you are not one of the user of a transportation even it is a public or a private. Nowaday, Thailand provides every mode of transportation which is a roadway, a waterway, a railway, an airway and a pipeline for freights and passengers except the pipeline. Transportation in Thailand is varied and confused, with no one can clearly means of transportation. Bus transport covers in Bangkok and long distances, motorbike dominate in rural area and short distances in a traffic congestion. In a city like Chiang Mai, Pattaya, Udon Thani and Ubon Ratchathani, is dominated by the tuk-tuk or sam-lor and three-wheeled
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For the freight, I separate into a domestic shipping and international shipping. A domestic freight shipment, the rail transportation will take place or have a higher market share than air transport because the rail network will be congested, easier to access especially in the centre of the country furthermore costs is much more lower compared with a large capacity of its. But for international freight shipment, 90 percentage of air cargo belongs to air transport, it can beat against rail transport because of the geography to clarify, mountain or river that hard to build a railway and connect to neighbor countries likes Myanmar (Burma), and the time savings of air transport is on demand mostly for just-in-time businesses. Anyway, it also depend on the type of its product, a product which is fragile, perishable and high-value is more suitable for air transport but rail transport will compete for agricultural products which is perishable by a cold storage rail that a cost reduction and it usually ships an industrial product. Not only competing with rail transport but also contend with Singapore Changi Airport, the top busiest AEC's busiest airports by cargo traffic. Next the passenger, I also divide into two parts, first in a centre of Thailand and less than 300 kilometres from Bangkok, second is the remote area where is more than 300 kilometres far from the capital. In a short distance (less than 300 kilometres from Bangkok) and the centre part of a country where the rail transport is the better choice to be in services because railway network is very dispersed than any parts, many stations, lower fare and time saving in operation likes transit or boarding period, moreover the government promotes a rail transport to be a centre of tourism in a region. In the
The airline industry not only transports passengers across the country and world but it also moves cargo from location to location. The largest segment for the airlines is general commercial passengers and business travelers. In 2004, there were 15 major airlines with 12 of those being mainly passenger carriers, the remaining three being cargo carriers. In addition to the large airlines (Delta, United, American, Southwest, Northwest), there are numerous low-cost regional carriers that have tapped into the larger carriers’ customer base. These smaller companies generally fly from smaller airports and serve a smaller amount of destination cities. Calling them a no-frills air carrier would not be far from the truth. Their goal is to move customers f...
Automobiles are also a form of travel that is a substitute for air travel. This is especially the case when a family is traveling as the costs are minimized and schedules coordinated on the travelers’ timetable. Threat of New Entrants Historically, entry into the market has been relatively easy for airline companies. When the economy was booming, people traveled more for leisure and companies used this opportunity to enter th... ... middle of paper ... ...
Personal transportation between major metropolitan areas is conducted through a combination of railway systems and domestic highway systems. With the efficient ability for people to move across country, there are no largely unproductive regions of the country. Modern transportation infrastructure creates efficient and rapid transportation, allowing increased economic power, but they also allow for increased military power within the state. If attacked the government can move troops and equipment overland quickly and efficiently and counter and naval based threats.
In lights of the PESTLE model, the political factors bring both opportunities and threats to Jetstar’s new proposal. Since this proposal focus on the Australia-India low price airline market, the analysis conducts involving Australia and India political environments. There are two potential opportunities in this political environment. Firstly, the Australian government has the incentive to boost the development of tourism between the two countries (Tourism Australia 2012). With the support of government, the start of the new route could be easier. For example, American government erects legislation to increase competition of the airport ‘by forcing these airports to increase the availability of scarce facilities’ (Williams 2015). Such legislations and regulations as well as financing investment or subsidies from government could directly help the airline company cut the cost. Similarly, Australian government could also have powerful intervention to influence aviation market. Thus, it is a big opportunity for Jetstar to the new route expansion if it acquires the
At one point—when cars remained extremely popular—airplane was faster yet more expensive form of travel. Yet when the United States becomes an automobile-less society this would no longer be the case. No longer could one drive an hour down the road to visit family by impulse, it would require planning for tickets and other fees. However, since plane is one of the only traveling opportunities prices surely would decrease from their once inflated
Before we discuss government intervention and its affect on an industry’s competition we must first seek to understand the five forces framework. The theory, discussed in 1979 by Micheal Porter seeks to evaluate the attractiveness of an industry. Throughout this essay I will explore the theory and then relate government action and its well-documented affects on the airline industry.
The main opportunities that the scheduled air transportation will have in the next five years are the possible decrease of TSA agents at airports, technology increasing the safety and comfort of the flights for the passengers and the more availability of flights for the consumers to choose from limited airlines.... ... middle of paper ... ... Dixit, A. (2000).
Finding ways to move goods from one point to another at a reasonable cost and within an acceptable time frame is a growing challenge for global businesses today. The costs and risks associated with transportation are increasing with the advent of globalization and low-cost-country sourcing. Even for companies with local operations only, they have to supply their products to various parts of a country which increases the costs and risks. Since the cost of gasoline has been on an upward trend, high level of efficiency in transportation is required to lower the costs involved and the risks associated with the costs. Costs concepts in transportation include economic, social and accounting costs. The risks and costs involved increases if the various modes of transport are used. There has been concern over many businesses failure to strategically think when they employ multimodal transportation services. Many businesses prefer the least expensive multimodal model instead of choosing the most effective; this trade-off is very expensive with hidden costs and risks increasing significantly (Molenaar, Anderson, Schexnayder, National Research Council (U.S.)., National Cooperative Highway Research Program., American Association of State Highway and Transportation Officials., & United States, 2010).
Air travel has grown in the past decade. Travel grew strongly for both leisure and business purposes. India will have nearly 800 to 1000 airplanes by 2023, it was estimated by Airbus. In spite of growth between 30 to 50 per cent in Indian aviation industry, losses of approximately 2200 crore is estimated for the current year.
To buttress the implication of the model, Porter explained why the airline industry is the least profitable amongst industries owing to the high threat of the competitive forces. The airline industry players compete heavily on price. Most custom...
Most of cities that people live are sequentially growing, daily routine of many people are also adapted for surrounding in the present. A lot of people have to spend most of their time with travelling though long distances to get from one place to another for connecting their businesses or other purposes by transportation. Most people use public transportation such as BTS and MRT to go each places while many people are using their own cars to travel. Thereby, both transportations have the same destination that is taking and moving people. People can choose vehicles from alter reasons depend on how people are responded to their needs by public transportation and private car that are different in convenience of travelling, expenditure of money and security of travel.
Tourism is an industry, with air transport becoming an indispensable factor. One major growing trend in airline industry is market globalization. People travel to other countries for both business and leisure purposes, leading to 7% increment in air travel per year. As a market is globalized, those involved will evolve into global customers who go in search of suppliers running on global base. This leads to a growth in business travel due to the global involvement of companies in terms of investments, production chain, supply and customers. Thus, the participation of air transport in facilitating the world trade is prodigious. Aviation implements another economic benefit of the air transport by providing consumer welfare to individuals while considering the environmental brunt such as the air quality, congestion and noise in the proximity of airports. Air transport being highly demanding has doubled the passenger numbers since the 1980s and over the last decade, it has increased by 45%. The huge growth and development of the aviation field has benefitted in heaps regarding
Land transportation is the dominant form of transportation in the world. People can move about land under their own power, either by walking or by other forms of human-powered transportation such as the bicycle. People also use domestic animals as a means of transportation, both for riding and for pulling wheeled wagons or carts.
We all use vehicles for transportation. People usually go to their desired destination either by driving their own cars or traveling in public transportation. Actually, it might be tough to choose that which one is the best selection for people to travel. Many people choose one of them according to their comfort while traveling and both of them have advantages and disadvantages in different conditions. Public transportation and driving own car both shares differences and similarities in many aspects, such as facility, cost, and comfort as well as traffic jam and accident occurrence.
It is considered a holistic approach that might be involved some factors providing an overall speed of journey (Mannering, Walter, and Scott, 2004). Wyatt (1997) states that the rail transportation has been made the urban areas to develop the transport network places with producing a good network to be placed over location with a poor network. For example in European Union (EU), the rail company had been employing around 570,000 people across passenger and freight operations in year 2012. From here, the rail transport is critical by the EU strategy to improve their economic condition. This rail sector had been makes a large contribution in oversea country.