Can a Last-Mile Platform Earn Attractive Margins?
Identify the pivotal structural force and recommend a position that improves exposure.
22 minutes
Scenario
RelayNow is evaluating a software-enabled marketplace connecting retailers with local delivery fleets. Demand is growing, but current platforms report weak margins.
- Your role
- Corporate strategy manager
- Method
- Porter’s Five Forces
Evidence pack
Buyers
The ten largest retailers represent 58% of addressable volume and run annual tenders.
Suppliers
Thousands of fleets exist, but only 12 meet national service and insurance requirements.
Entrants
Basic marketplace software is inexpensive; fleet density and retailer integration take years.
Substitutes
Retailers can build captive fleets or use parcel carriers with slower service.
Rivalry
Four scaled platforms compete on price; unused driver capacity is high outside peak periods.
Economics
Retailer-specific integrations add 3–6 percentage points to service cost.
Constraints
- RelayNow will not own vehicles.
- The recommendation must identify a profit mechanism.
- A force rating without driver evidence earns no credit.
Case steps
Work through each prompt using the evidence pack. Answers and rubric weights stay protected in the interactive flow.
Define the industry boundary by customer need, product scope and geography.
Rate all five forces and cite at least one driver for each.
Choose the pivotal force and explain its driver → behaviour → economic effect chain.
Recommend one strategic position or structural response and name the assumption it depends on.