Questions for Gitomer Container Leasing Company
List and discuss the advantages and disadvantages to the Gitomer firm of the first alternative on Mark’s list. Advantage: The empty container can be turned or moved to the location that is needed. May increase the number of people using containers to ship from that location, since the transportation fee is covered or lower than the market price. Disadvantage: They need to cover the cost of shipping the empty container. 2. List and discuss the advantages and disadvantages to the Gitomer firm of the second alternative.
Advantage: The empty container can be turned or moved to the location that is needed.. May increase the number of people using containers to ship from that location, since the transportation fee is covered or lower than the market price. Disadvantage: They need to cover the cost for finding new cu
...stomers. List and discuss the advantages and disadvantages to the Gitomer firm of the third alternative. How many “free” days should be allowed? Advantage: Increase the leasing container market share.
May increase the number of people using containers to ship from that location, since the transportation fee is covered or lower than the market price. Disadvantage: The problem of low-demand empty containers still there. They may need to keep purchasing new containers since the increasing demand to high-demand market and the container on the low-demand market never return. List and discuss the advantages and disadvantages to the Gitomer firm of the fourth alternative. Advantage: It can make sure no empty containers need to be shipped.
It can stop increasing the empty container in the market. Disadvantage: The empty container in the market can never be turned or
moved to the location that is needed. They will lose some of the customers since the price and the requirement is different than before. 5. List and discuss the advantages and disadvantages to the Gitomer firm of the fifth alternative Advantage: It can make sure no empty container needs to be shipped. It can stop increasing the empty container in the market. Disadvantage: The empty container in the market can never be turn or moved to the location that is needed.
They will loose some of the customers since they stop shipping containers to the low-demand area. It will lower the market share. 6. List and discuss the advantages and disadvantages to the Gitomer firm of the sixth alternative. Advantage: The empty container can be turned or moved to the location that is needed. It can lower the empty container in the market. Disadvantage: The steamship have their own container, and the container cost may not very expensive, so they may stop leasing container since the price and stuff are difference, and increase their container to increase the market share.
I may cause the company to close down. 7. No cost, demand, or revenue data have been present with this case. What kinds of numbers or values would one need to have before deciding answers to the questions posed above? The shipping cost to the high-demand area, the shipping cost to the low-demand area, the cost of a new container, the material cost of a container (they can sold the container for material to build house, cars and stuff), the revenue to ship to high-demand area, the revenue to ship to low-demand are.
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