The Business Model Analysis Essay Example

iveries, with provisions included should late or lost deliveries occur. By separating the two businesses and creating a relational contract between warehouse operators and couriers, the warehouse operation can focus on its core business and avoid diversifying into delivery. Owning and operating a fleet of trucks incurs costs such as driver salaries, insurance, and vehicle maintenance, offset by complete control over the delivery process and management of associated expenditures. A contract between warehouse operators and a trucking company benefits both parties: warehouse operators evade additional costs and responsibilities, while the delivery company concentrates on their own business without worrying about competition from the new warehouse-operated company.