ArcBest Corporation

Company report, featuring a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and SWOT analysis

Introduction

This study on ArcBest Corporation is part of our coverage of the 10,000 largest companies in the world. We produce and update it on an expedited timeline to make sure the content is as up-to-date as possible.

Only Premium members have access to the full study on ArcBest Corporation, including the SWOT analysis, PESTLE, 5C analysis, CATWOE, Porters Five Forces, MOST analysis and a myriad of additional high value sections.

We identify potential new products and services, forecast future market trends, and prognosticate synergies between ArcBest Corporation and other organisations, all separate from the analysis-driven sections.

Company Description

ArcBest Corporation is a leading logistics provider headquartered in Fort Smith, Arkansas that was founded in 1923. The company provides a full suite of integrated transportation and logistics solutions, including less-than-truckload, truckload, expedited, and logistics services. ArcBest serves a wide range of markets, including automotive, consumer goods, healthcare, industrial, and retail.

Industry Overview

ArcBest Corporation operates in the transportation and logistics industry, which is estimated to be worth around $1.3 trillion in the United States alone. This industry employs over 4 million people in the US, Canada and Mexico, with the majority of employees being based in the US. Additionally, the industry is expected to grow at an average rate of 2.6% each year over the next five years.

Industry Classification

In terms of formal classification, Platform Executive has tagged ArcBest Corporation as a business operating within the Transport and Logistics industry.

1. Introduction
2. Company Description
3. Industry Overview
    3.1 Industry Classification
4. Intellectual Property
5. Major Products and Services
6. Key Competitors
7. Stakeholders
8. Value Proposition
9. Customers and Cohorts
10. Competitive Advantages
11. Market Trends
12. Key Performance Indicators
13. Financials (BETA)
    13.1 Highlights
    13.2. Board members
    13.3 Share Performance
    13.4 Income Statement
14. PESTLE Analysis
15. Potential Products/Services
16. Potential Synergies
17. Porter's Five Forces
18. CATWOE Analysis
19. SWOT Analysis
    19.1 Strengths
    19.2 Weaknesses
    19.3 Opportunities
    19.4 Threats
20. 5C Analysis
21. MOST Analysis
22. Innovation Scorecard
23. Appendices

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Intellectual Property

Some of the Patents granted to, or relevant to the organisation include the following:

Patent Title: Systems and methods for trailer tracking
Patent ID: 10,743,619
Date: 2020-08-04

Patent Title: Systems and methods for complex optimisation
Patent ID: 10,743,176
Date: 2020-08-04

Patent Title: System and method to display a graphical user interface overlay over a map
Patent ID: 10,742,521
Date: 2020-08-04

Patent Title: System and method for providing an attribute-based access control system
Patent ID: 10,739,968
Date: 2020-07-28

Patent Title: System for managing user access to a computer system
Patent ID: 10,739,967
Date: 2020-07-28

Patent Title: System and method for providing a dynamic user interface
Patent ID: 10,739,923
Date: 2020-07-28

Patent Title: System and method for providing an automated vehicle tracking system
Patent ID: 10,739,917
Date: 2020-07-28

Patent Title: System and method for providing an automated vehicle tracking system
Patent ID: 10,739,844
Date: 2020-07-28

Patent Title: System and method for providing a fleet management system
Patent ID: 10,739,843
Date: 2020-07-28

Patent Title: System and method for providing an improved asset tracking system
Patent ID: 10,739,842
Date: 2020-07-28

Major Products & Services

The main products and/or services commercialised by this business include the following:

LTL Freight Shipping
Truckload Shipping
International Shipping
Logistics Solutions
Asset-Based Trucking Services
Port Drayage Services
Warehousing and Distribution Services
Specialized Transportation Services
Intermodal Solutions
Freight Brokerage Services
Technology Solutions

Key Competitors

We have identified the following organisations as being key competitors:

YRC Worldwide Inc
Schneider National
XPO Logistics
FedEx Corporation
UPS Inc
Hub Group
Old Dominion Freight Line
Saia Inc
Con-way Inc
Roadrunner Transportation Systems Inc

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Key Stakeholders

Stakeholders are individuals or groups who have an interest in a business and/or are affected by its actions.

These stakeholders can have different requirements and expectations from the business, which must be taken into account when making decisions.

By understanding their stakeholders’ requirements, a business can make informed decisions that benefit all involved.

Below is the list of internal and external stakeholders we have identified for this business:

1. Customers: ArcBest Corporation’s customers are their key stakeholders. This includes individuals, businesses, and government agencies who use their services.

2. Employees: ArcBest Corporation’s employees are also key stakeholders. This includes their workforce, from their leadership to the frontline employees.

3. Investors: ArcBest Corporation’s investors are their key stakeholders, as they provide the capital necessary for the company to grow and expand.

4. Partners: ArcBest Corporation’s partners are also key stakeholders. This includes their vendors, suppliers, and other companies they collaborate with.

5. Communities: ArcBest Corporation’s communities are their key stakeholders. This includes the communities that are affected by their operations and services, such as the cities and neighbourhoods where they have facilities and customers.

Value Proposition

A value proposition explains the unique value and/or benefits that an organisation provides to its customers, partners, stakeholders and the overall market. It outlines what makes a company like ArcBest Corporation different from its competitors, along with what it can offer that key competitors cannot.

A corporate value proposition can be used with the competitive advantages section of this report in order to better understand ArcBest Corporation and its position within the marketplace.

ArcBest Corporation provides innovative market-leading technology and services that help organisations optimize their business operations. ArcBest’s solutions help organisations save time and money while increasing efficiency and effectiveness.

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Asset-light business model: ArcBest Corporation's asset-light business model allows them to provide cost-effective services to their customers while still remaining competitive in the market. This model also helps them to better manage their costs, allowing them to offer competitive pricing and services.

Comprehensive logistics and transportation services: ArcBest provides a wide range of integrated logistics and transportation services, including less-than-truckload (LTL), full truckload (FTL), intermodal, supply chain management, expedited services, and international freight. This broad portfolio of services enables the company to meet the specific needs of their customers.

Experienced and knowledgeable staff: ArcBest employs experienced and knowledgeable staff, which allows them to provide the best quality of service to their customers. Their staff is trained in the latest technologies and trends in the industry, giving them an edge over their competitors.

Technology: ArcBest utilizes advanced technology to ensure the efficient and cost-effective delivery of services to its customers. This technology helps them to optimize their operations, as well as track shipments, monitor customer service, and provide real-time updates to customers.

Innovative solutions: ArcBest is constantly innovating to provide customers with more efficient and effective solutions to their logistics and transportation needs. They are always looking for new and better ways to meet their customers' needs, giving them a competitive edge.

Customers & Cohorts

As part of this competitive intelligence study, we have identified the main customers of the organisation.

These include the following cohorts:

Commercial Customers
Government Customers
Retail Customers
Residential Customers
Industrial Customers
International Customers
Automotive Customers
Pharmaceutical Customers
Food & Beverage Customers
High Tech Customers

Market Trends

Market trends can impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and affecting the organisation's ability to remain competitive in the market.

As part of this study, we have identified a number of potential short-term to medium-term trends that could impact the organisation. These include the following:

Growing E-Commerce: Over the coming years, the demand for e-commerce services is expected to rise significantly. ArcBest Corporation must be prepared to take advantage of this growing trend by investing in technology and infrastructure to facilitate the efficient delivery of goods to online customers. This will require ArcBest to remain innovative in order to stay ahead of the competition and meet customer needs.

Increasing Regulations: With the growing demand for more sustainable practices, ArcBest will need to be aware of the increasing regulatory requirements in the industry. This includes such regulations as emissions standards, improved vehicle safety, and new labour laws that may impact their operations. ArcBest will need to stay up to date on new rules and regulations in order to remain compliant and competitive.

Growing International Trade: As global economies become more interconnected, there is a growing demand for transportation and logistics companies to facilitate the movement of goods across borders. ArcBest must be prepared to take advantage of this trend by investing in services that can help to move goods from one nation to another.

Automation: As technology continues to advance, ArcBest must be prepared for the impact of automation on their operations. This includes such things as driverless vehicles, improved warehouse automation, and the use of artificial intelligence to improve customer service. ArcBest must invest in new technologies in order to remain competitive and provide the best service to their customers.

Key Performance Indicators

Below is a list of KPI's that we have identified as being strategically relevant to this organisation:

Financials (BETA)

The key financials for ArcBest Corporation include income statements, which can be found in their annual reports. These financial statements provide information on the organisation's financial performance and health, including revenue, expenses, and profits. This information, along with other indicators are used by investors, analysts and other stakeholders to evaluate the company's performance and future prospects.

Where a financial does not match, we have included those of the parent company (if a listed entity). If the financials are missing please contact us and we will prioritise the update.

Key Personnel

Income Statement

[eod_financials target="ARCB.US" id="10329343" preset="Income Statement" years="2018-2023"]

Highlights

Top-level corporate stats and financial highlights for the listed entity, include:

Share Performance

Below is the current (EOD) share performance for the company, or its listed parent:

Potential Products/Services

As part of this study we have attempted to prognosticate potential products and/or services this organisation could develop in the short to medium-term.

Logistics and warehousing services: ArcBest could offer customers the ability to store their goods in their warehouses and provide them with logistics and inventory management services.

Freight forwarding services: ArcBest could expand its current services to include freight forwarding services, helping customers transport their goods from one place to another.

International shipping services: ArcBest could offer customers the ability to ship goods internationally and take care of the customs paperwork and documentation needed.

Automated tracking and dispatch systems: ArcBest could develop an automated tracking and dispatch system that would allow customers to track their shipments in real time, giving them the visibility they need.

Supply chain optimisation services: ArcBest could offer customers the ability to optimize their supply chains using advanced analytics and data-driven insights.

Online freight booking services: ArcBest could develop an online platform that would allow customers to quickly and easily book their freight shipments.

Last-mile delivery services: ArcBest could offer customers a last-mile delivery service, helping them get their goods to the customer’s doorstep.

Technology solutions: ArcBest could develop technology solutions that would help customers improve their operations and efficiency.

Consulting services: ArcBest could offer customers consulting services, helping them optimize their operations and reduce their costs.

Business intelligence services: ArcBest could develop a business intelligence platform that would help customers gain insights into their operations and make better decisions.

Potential Synergies

Using our product and portfolio-matching algorithm, we have determined that the following organisations have potential synergies with the company:

1. UPS
2. FedEx
3. DHL
4. US Postal Service
5. Schneider National
6. Amazon
7. Roadrunner Transportation Systems
8. XPO Logistics
9. YRC Worldwide
10. Old Dominion Freight Line

Porter's Five Forces

Created by Harvard Business School Professor Michael Porter in 1979, Porter's Five Forces model is designed to help analyse the particular attractiveness of an industry; evaluate investment options; and better assess the competitive environment.

The five forces are as follows:

Competitive rivalry
Supplier power
Buyer power
Threat of substitution
Threat of new entries

Porter's 5 forces for ArcBest Corporation are as follows:

1. Supplier power: HIGH

2. Buyer power: MODERATE

3. Threat of substitute products: MODERATE

4. Threat of new entrants: MODERATE

5. Competitive rivalry: MODERATE

In relation to these forces, ArcBest Corporation scores as follows:

1. Supplier power: HIGH. ArcBest Corporation has a large number of suppliers, but they are all relatively small companies. There is little bargaining power among them.

2. Buyer power: MODERATE. ArcBest Corporation's customers are primarily large companies that have significant bargaining power. However, ArcBest Corporation has a good relationship with its customers and is able to negotiate favorable terms.

3. Threat of substitute products: MODERATE. There are a number of potential substitutes for ArcBest Corporation's products, but none are perfect substitutes. ArcBest Corporation's products are still the best option in many cases.

4. Threat of new entrants: MODERATE. The barrier to entry for ArcBest Corporation's business is MODERATE. There are a number of potential new entrants, but ArcBest Corporation has a good reputation and a strong relationship with its customers.

5. Competitive rivalry: MODERATE. There is MODERATE competition in the market for ArcBest Corporation's products. However, ArcBest Corporation has a good reputation and a strong relationship with its customers.

PESTLE Analysis

This PESTLE analysis is a strategic planning tool that assesses key external factors affecting the organisation, including the following:

Political
Economic
Social
Technological
Legal
Environmental

Each of these factors is analysed to determine their impact on the organisations strategy, objectives, and operations.

By utilising a PESTLE analysis, the organisation can make better decisions and develop strategies to address potential risks and opportunities.

CATWOE Analysis

The CATWOE analysis is used to investigate each stakeholders perspectives in order to enable the business to make informed decisions.

The CATWOE analysis is a problem-solving tool consisting of six elements:

Customers
Actors
Transformation process
World view
Owners
Environmental constraints

We view the CATWOE as being most useful when used in conjunction with other problem-solving tools such as a SWOT analysis.

Customers: ArcBest Corporation provides transportation and logistics services to a variety of customers, including businesses, government agencies, and individuals. Their services encompass a wide range of solutions, including air, ground, and ocean freight, truckload and less-than-truckload shipping, supply chain management, and warehousing.

Actors: ArcBest Corporation has a wide range of actors, including employees, customers, suppliers, shareholders, and partners. The company’s leadership team is responsible for setting the strategic direction and managing the operations of the organisation.

Transformation process: ArcBest Corporation’s transformation process involves providing customers with a comprehensive suite of transportation and logistics solutions. The company works to understand their customers’ needs and develop customized solutions that meet those needs. The company also strives to provide a seamless experience across all of its services.

World view: ArcBest Corporation views itself as a leader in the transportation and logistics industry. The company takes a customer-centric approach to its operations, focusing on providing solutions that meet its customers’ needs. The company also strives to maintain its commitment to providing safe, reliable, and efficient services.

Owners: ArcBest Corporation is owned by its shareholders. The company is publicly traded on the Nasdaq stock exchange under the symbol ARCB.

Environmental constraints: ArcBest Corporation is subject to the environmental regulations and laws of the jurisdictions in which it operates. The company is committed to following all applicable laws and regulations, and taking steps to reduce its environmental impact. The company also works to reduce its energy consumption and waste production, and to use sustainable materials in its operations.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the ArcBest Corporation business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

Strengths

Below is a list of the strengths we have identified for the business:

1. ArcBest is a leading provider of logistics and transportation services with a diversified portfolio of companies that provide a comprehensive set of services.

2. ArcBest has a strong financial position with over $2.5 billion in annual revenue and over $1 billion in assets.

3. ArcBest has a diversified customer base with over 10,000 customers in a variety of industries.

4. ArcBest has a skilled and experienced management team with over 100 years of combined experience in the logistics and transportation industry.

Opportunities

Below is a list of opportunities we have identified for the business:

1. Invest in technology: ArcBest Corporation should invest in technology to improve operational efficiency and customer service. This could include investing in a system to track shipments and provide real-time updates to customers, as well as adopting new technologies such as artificial intelligence (AI) and analytics to improve decision-making.

2. Expand services: ArcBest Corporation should consider expanding services to new markets. This could include entering into new geographical areas, offering new services such as last-mile delivery or cross-border shipping, and exploring new service models such as subscription-based models.

3. Strengthen customer relations: ArcBest Corporation should focus on strengthening customer relations by improving customer service and introducing new customer-centric programs such as loyalty programs or customer rewards.

4. Optimize pricing: ArcBest Corporation should look for ways to optimize pricing to maximize profits, such as introducing dynamic pricing models and leveraging data and analytics to identify pricing opportunities. Additionally, ArcBest should consider introducing value-added services to differentiate its services from competitors.

Weaknesses

Below is a list of the weaknesses we have identified for the business:

1. Lack of focus on core competencies: ArcBest Corporation has been trying to diversify its business in recent years, but this has led to a lack of focus on its core competencies.

2. Declining market share: ArcBest Corporation’s market share has been declining in recent years, as it has been losing ground to its competitors.

3. Poor financial performance: ArcBest Corporation’s financial performance has been poor in recent years, as it has posted losses in three of the past four fiscal years.

4. High debt levels: ArcBest Corporation’s debt levels are relatively high, which could put pressure on its financial flexibility going forward.

Threats

Below is a list of the threats we have identified for the business:

1. Increased competition from new market entrants. ArcBest Corporation is facing competition from new entrants in the market, such as Amazon, who are offering customers lower prices and more efficient services. This is making it difficult for ArcBest to remain competitive and maintain their market share.

2. Increasing customer demands. Customers are increasingly expecting more from their shipping and logistics companies, including shorter delivery times, better customer service, and more efficient tracking. ArcBest must remain up-to-date with customer demands in order to remain competitive.

3. fluctuating fuel costs. The cost of fuel is a major factor in the shipping and logistics industry, and a sharp increase in fuel costs can have a huge impact on the profitability of ArcBest.

4. Technological advances. Technological advances, such as automation and the use of big data, can help ArcBest become more efficient and reduce costs. However, ArcBest must also invest in technology in order to keep up with their competitors.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.

This (concise) 5C analysis examines the external and internal environment for ArcBest Corporation. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to ArcBest Corporation, as well as areas where the company needs to improve its operations or strategy.

Company: ArcBest Corporation is a transportation and logistics provider headquartered in Fort Smith, Arkansas. It provides integrated solutions through its three main subsidiaries: ABF Freight, Panther Premium Logistics, and FleetNet America. ArcBest offers a variety of services and solutions such as freight transportation, supply chain management, and warehousing.

Collaborators: ArcBest works with several partner companies to help provide the best services to its customers. These partners include FedEx, UPS, DHL, and a number of other transportation and logistics providers.

Customers: ArcBest’s customers range from small businesses to Fortune 500 companies. They provide services to a wide range of industries including manufacturing, retail, healthcare, and education.

Competitors: ArcBest’s main competitors include XPO Logistics, YRC Freight, and Old Dominion Freight Line. They also compete with a number of smaller, regional transportation and logistics providers.

Content: ArcBest has a wide range of content on its website, including information about its services, solutions, and partnerships. They also offer resources such as industry news, white papers, and case studies. Additionally, they provide tools such as route planning, tracking, and analytics.

MOST Analysis

The MOST analysis framework is commonly used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. This analysis helps organisations to focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles that may arise along the way.

Mission
Objectives
Strategy
Tactics

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

As part of our research and analysis activity, the team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism.

First, we allocate a score of A-E for the industry vertical, gauged on the key organisations operating within the space; and then score the individual business using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant into the marketplace; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that in the view of the analysis team it lags behind notable businesses in terms of innovation and product pipeline.

Below is a guide to each score:

Industry score:

A	The industry is amongst the most innovative; with the leading players all driving the sector forward. Example industry: PaaS
B	The industry and its leading players have a good track record of innovation; and can quickly react to change. Example industry: Pharmaceutical
C	Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate. Example industry: FMCG
D	Businesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption. Example industry: Retail Banking
E	The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change. Example industry: Publishing

Company score:

1	The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2	The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3	The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4	The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5	The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.

The team at Platform Executive has judged ArcBest Corporation as having an innovation score of D3.

Appendices

The appendices section of this report contains supplementary information that the team at Platform Executive deems helpful in providing a more comprehensive understanding of the report's contents.

This information is not considered an essential part of the study but serves as a useful supplement to the main text.

Methodology

This study on ArcBest Corporation forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The information and data included are updated on a timely schedule to ensure that our Premium members receive the most up to date information .

The report is based on information and learning from the following sources:

Corporate websites
Proprietary research databases
SEC Filings
Corporate press releases
News articles
Financial data API's
Product-matching algorithm

Further Information

Premium members: If you cannot find the desired information or data set for the business you are researching then please reach out to our research and analysis team. We can tailor reports to meet your requiremnents, with a fast turnaround time.

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Disclaimer

Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Changelog

Premium members: To request a priority update to this report, please contact us. Our standard turnaround time is normally 48 hours.

The changelog for this report can be found below, complete with the next scheduled update:

v1.1: Initial load of report
Date: 1st March 2023

Key Financials added (BETA)
Date: 17th March 2023

Next scheduled update: 25th April 2023

Industry Keywords

Related keywords:

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