Navistar is a leading manufacturer of trucks which has recently returned from a series of difficult financial years. The company participates in a limited manner in international marketing, but has demonstrated, through a strategic relationship with U-Haul, that it can work with customers to understand their needs and develop products which can profitably meet those needs. Faced with increased international and domestic competition, Navistar has the opportunity to expand its international presence and to build a reputation not only as a supplier of trucks, but as a strategic business partner with its customers.
Navistar is the nation's leading manufacturer of trucks used in commercial service. It competes with six other major manufacturers, including a combination company consisting of Volvo and General Motors. Although Navistar is by far the largest truck manufacturer, it has suffered significant financial difficulties in the past and has only recently returned to profitability.
At this point, the truck manufacturer industry as a whole and Navistar in particular face challenges including international marketing opportunities (as well as international competition) and decreased profit margins on their product offerings. In the larger classes of trucks, it is difficult to produce a single truck which can meet the specific needs of all customers, so there is an increased tendency to "built to order" products; this trend also decreases profitability. As the market enters a mature phase of the product lifecycle, competitors within this industry are developing more aggressive marketing techniques to maintain and increase market share. Ford, for example, has introduced 24-hour roadside assistance.
There are other changes in the industry which are affecting truck manufacturers. For example, there is a move to a national commercial truck driving license, a move which recognizes the interstate nature of this job and which seeks...