A strategic assessment of the challenges involved in entering the cargo containers tracking and security market for an RFID company

A strategic analysis is performed of how eXI Wireless Incorporated (eXI), a relatively mature company, can best address an opportunity for applying Radio Frequency Identification (WID) technology to the tracking and security of cargo containers. eXI has identified this opportunity because of its size and growth potential. The RFTD industry, Containers market, resources and competencies of ex1 are analyzed in detail. Findings suggest that ex1 will be highly challenged to succeed in this marketplace given that it is driven by large, highly experienced and influential players that are consolidating and attempting to standardize the market. Specifically, the key capabilities of eXI are technology-based and are not expected to provide competitive advantage in a new market where standards and consolidation override the value of the technology itself. eXI is therefore advised to focus on managing its competences to leverage the firm into markets in which it can more easily create value.