Tal International Case Study

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Background
TAL International is one of the world’s oldest and largest lessors of international freight containers and a current leader in global container leasing. It was formed in 1963 and currently has 17 offices in 11 countries and about 230 third party container depot facilities in 40 countries. Its fleet includes five types of containers: dry, refrigerated, special, chassis, and tank containers. Besides its leasing operation, the company also sells used containers (About Us, 2013). TAL International has two business segments: “Equipment Leasing, which includes the acquisition, leasing, re-leasing, and sales of several types of intermodal transportation equipment; and Equipment Trading, which purchases containers from shipping line customers and other sellers of containers, and resells to container traders and users of containers” (Dividend History, 2013).

TAL International filed its IPO on June 30, 2005 with an offering of $201.25 million, and went public on October 12, 2005 with an offering worth $207 million (Historical Events, 2013). The company trades on the New York Stock Exchange under the ticker symbol TAL. As of March 5, 2013 the company’s price per share was $43.82 (TAL NASDAQ, 2013). The company declared a quarterly dividend of $0.64 per share, payable on March 28, 2013. The dividend is a 3.2% increase of the previous one (TAL Raises Quarterly Dividend, 2013). In 2011, TAL International was named a top 25 dividend stock with a 7.41% yield, according to Dividend Channel’s “DividendRank” report (DividendRank, 2011). A year later, in 2012, the company was also named the top dividend stock with insider buying at 7.40% yield (DividendChannel, 2012).

Strategic Direction
Mission Statement
No mission statement was found on the company’s website, 2011 annual report, or the latest 10-Q filing. Therefore, none of the elements were mentioned. Suggested new mission statement:
As one of the largest container leasing companies in the world, we strive to provide excellence in everything we do to our customers and employees, both in the U.S. and internationally with the greatest care and responsibilities. We believe in utilizing the best technology possible in order to make the various types of containers that serve our customers’ needs. Our ultimate goal is to make the world a more connected place through increased variety of goods that prosper trade. Meanwhile, we are committing resources for finding more environmentally safe practices, while also finding the most profitable ways for our investors and the growth of the company. Goals and Objectives

Goals and objectives are not stated.
Industry- SIC and NAICS
TAL International is engaged in the business of intermodal freight container leasing and transportation over the roads, rails, and water according to the industrial codes. The codes for the top 3 competitors are below:

SIC CodeNAICS Code

TAL International 37990000:532411:
Transportation equipment, necCommercial Air, Rail, and Water Transportation Equipment Rental and Leasing
COSCO Pacific 73590000: 532411
Equipment rental and leasing, nec

Seacastle 73590000532411

Seaco 47410000:532411
Rental of railroad cars

By analyzing the NAICS codes one can see that these four are identical. Therefore, the competition is very high. However, the SIC codes are different; thus competition is more segmented in the container leasing industry, making it less competitive. Industry Environment

Competitive Structure
TAL International faces a significant amount of competition within the intermodal container industry. The competition among industry rivals is of an oligopoly competitive nature. There are fewer yet larger companies that tend to have similar pricing and compete “…in many ways, including lease pricing, lease flexibility, supply reliability and customer service” (Form 10-K, 2013). Although there...
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