Cervus Equipment Corporation: Diversified Growth in Trucking Case Solution

Case Solution & Analysis for Cervus Equipment Corporation: Diversified Growth in Trucking by Daniel Doiron, Davis Schryer.

Complete Case details are given below :

Case Name :      Cervus Equipment Corporation: Diversified Growth in Trucking
Authors :           Daniel Doiron, Davis Schryer
Source :              Ivey Publishing
Case ID :           9B16M230 / W16885
Discipline :        General Management
Case Length :    14 pages
Plagiarism : NO (100% Original work)
Description for case is given below :
Cervus Equipment Corporation, the major Canadian dealer group for John Deere and Peterbilt Motors Company equipment, had grown from CA$56 million in 2004 to close to $1 billion in 2014. It had achieved these results through an aggressive acquisition and growth-oriented strategy, by purchasing heavy-equipment dealerships representing John Deere, Bobcat, and other high-end original equipment manufacturers (OEMs). The company’s move into the long-haul trucking industry, beginning with the acquisition of 16 Peterbilt truck dealerships in 2013, was timely, as the agricultural and construction sectors entered what many believed would be a prolonged downturn in its base in western Canada. However, these acquisitions and this move into the trucking industry presented significant challenges related to integration, leadership and management skills at the dealer level, OEM partner control, and the presence of established competitors that served the major vocational and fleet markets. The bottom line: Cervus Equipment required its transport division to drive profitable growth in 2016 and beyond.
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