Abstract

Yellow was set up in the 1920s to provide bus and taxi services in Oklahoma. Very soon, the company realized that freight shipping was a more lucrative business and divested its taxi business to operate full-time in transporting freight. After the trucking industry was deregulated by the US Congress in 1980, the company found itself unequipped to deal with the increased competition and a dynamic industrial environment. It also had a narrow view of what its business was, and did not give due importance to the broader area of service. Consequently, its performance began to decline.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The problems faced by a mature transportation company.

Keywords

Yellow, 1920, bus, taxi, Oklahoma, freight shipping, lucrative business, divested, taxi business, operate, full-time , transporting freight, trucking industry, deregulated, US Congress, 1980, unequipped, competition, dynamic industrial environment