Assignment 4: Final Business Plan
Running head: BUSINESS PLAN 1
BUSINESS PLAN 5
18 Wheelers Business Plan
Yvonne Winn
Dr. Talil Abrhiem
October 25, 2020
Assignment 1: Business Models
The selection of an ideal business model is essential during business planning. The business model defines how the startup or developing company plans to create value, capture the market, and make profits. It helps in identifying products and services that the company plans to offer in the market. The business model also helps new companies adopt the appropriate go-to-market strategy, target market, and determining business expenses. Some of the business models that can be applied by 18 Wheelers Trucking Company include distributor, manufacturing, and transportation
The distributor business model involves the distribution of goods from one point to another. Generally, the distributor business model consists of producers, wholesalers, and retailers who assist in moving the product from production to consumption. A manufacturing business model describes the use of raw materials to produce products for sale (MU, 2020). On the other hand, the transportation model facilitates the movement of goods and services from the producer to the consumer.
The best business model for 18 Wheelers Trucking Company is a transportation service, particularly trucking. This model consists of some of the fastest-growing industries in the world that are ideal for investment. Transportation and logistics are one of the largest and competitive industries in the United States. As of 2018, the industry was approximated to be worth $1.6 trillion, the trucking subsector accounting for $700 billion alone (Select USA, 2020). The trucking industry has also realized volatile profitability and revenue growth over the last five years. The trucking industry's robustness indicates that the freight transportation business model is the best approach for the 18 Wheelers Trucking Company.
Reference
MU. (2020). Traditional Types of Business Models. Retrieved from https://online.maryville.edu/business-degrees/traditional-types-business-models/#:~:text=Manufacturer,create%20a%20product%20to%20sell.&text=A%20manufacturing%20business%20can%20sell,business%2Dto%2Dconsumer%20model.