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These unions also set up strikes which cripple companies who use union workers as their main labor force. These unions have high power since the companies are dependent on their workers. With truck manufacturing, the companies usually get little to no discounts on the trucks so their power is relatively low. Fuel, on the other hand, has a high impact on this industry. If the cost of fuel rises significantly, the profits of the LTL companies would shrivel up because of the necessity to pay for fuel at any cost.
Power of Buyers – High
The customers are highly price and service sensitive. They will seek other alternatives for their shipping needs when not given the right price and service...
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