...EXECUTIVE SUMMARY Federal Express is seeking the way to increase the volume of Courier Pack which has tremendous growth kpotential for the company. Their goal is to increase the Courier Pack volume from 1300 to 6000 per day. However, shipping managers are avoiding a risk of choosing unapproved carriers and Federal Express lacked marketing efforts. Therefore, to achieve the goal, I recommend (1) Federal Express to use various advertising methods such as TV, magazines, newspapers, and radio (2) to focus on benefits of using Courier Pak and (2) to give enough education about the feature of Courier Pak to executives who make decisions. ANALYSIS Value Proposition of Courier Pak Courier Pak is a viable product and has huge opportunity because first of all, considering the delivery of documents or other small items are 870,000 pieces per day, the potential market for Courier Pack is huge if the item is weighted less than 2lb. Second, the variable cost of Courier Pak is $4.25 which is less than the cost of Priority One Package, $10.60 and Standard Air Service Package, $9.21. It implies that Courier Pak is more profitable. Third, Exhibit 4 shows that Courier Pak has unfilled potential because the sales had doubled in the past year even though Courier Pak prices had been increased three times. Fourth, the average weight of Courier Pak is one pound while the average weight of Priority One and Standard Service package is about 14pounds. Taking a cargo-carrying capacity of 6200 pounds...
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...CASE FEDERAL EXPRESS EBM- 573 GLOBAL BUSINESS OPERATIONS BY EDUARDO GONZALES INSTRUCTOR DR. HASSAN YEMER DATE: APRIL - 19- 2014 CASE OF FEDERAL EXPRESS Federal Express is the world's largest package delivery company today. They have been successful mainly because of their technological advancements, Federal Express is an express transportation company, founded in 1973 by Frederick W. Smith. During his college years, he recognized that the United States was becoming a service-oriented economy and needed a reliable, overnight delivery service company designed to solely transport packages and documents. He wrote a Yale term paper on this idea, and received a “ C ”. His professor thought it would never work. Fortunately for Frederick Smith, he did it take it to heart and ended up building that company he dreamed of. He found investors willing to contribute $40 million, used $8 million in family money, and received bank financing. He started Federal Express with over $80 million, making it the largest company of its time ever funded by venture capital. Background Federal Express became successful so quickly because all their competition became weaker at the same time. They built a super-hub in Memphis, Tennessee, where all packages from the United States would be loaded on the correct transport and shipped out each night. Today, Federal Express has over 143,000 workers worldwide, and delivers more than 3 million express packages to 200 countries daily. One...
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...7) Entrega y recibo a satisfacción. Los sistemas que no se muestran pueden ser utilizados por FedEX a través de diferentes dispositivos electrónicos y satelitales que permitan crusar u¿información de diferente tipo para la toma de decisiones y para procurar la eficiencia en la operación de la empresa. El proceso de envío de FedEX puede hacerse más eficaz y contribuir al mejoramiento del comercio electrónico en la medida en que sea muchos más automatizado y se minimicen los tiempos de entrega. http://www.termpaperwarehouse.com/essay-on/Case-1-How-Fedex-Works-Enterprise/144567 Caso 1: ¿Cómo funciona Fedex: Enterprise System En: Negocios y Administración Caso 1: ¿Cómo funciona Fedex: Enterprise System Federal Express fue una de las primeras empresas de transporte express para obtener los beneficios de la tecnología. Ya en 1978, sólo cinco años después de que comenzó sus operaciones, la empresa pionera en el primer centro de servicio al cliente automatizado. Para proporcionar el paquete en tiempo real el seguimiento de cada envío, FedEx utiliza una de las redes de telecomunicaciones y de informática más grande del mundo. Mensajeros de la compañía operan SuperTracker ® computadoras de mano, para registrar el tránsito de envíos a través de la red integrada de FedEx. uso de FedEx de la tecnología se centra en el cliente, en lugar de limitarse a seguir siendo competitivos. Con FedEx, las...
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...2011 Airborne Express EMI and the CT scanner Juan Perez Strategic Management Juan Perez Strategic Management |Airborne Case 1 Strategic Management 6/7/2011 First Case Analysis: Airborne Express Analysis of the Express Mail Industry: In order to have a clear understanding of Airborne’s position and to make recommendations about future moves, it is critical to examine the industry environment—competitors, customers, and suppliers—and examine the firm internally. To do so, the Porter’s five forces framework and a resource & capability analysis will be utilized. Threat of Substitutes: In today’s aggressive environment, product substitutes are regarded as one of the most threatening forces in competition. In the case of Airborne, it wasn’t the exception. There were other two main players (Federal Express and United Parcel Service) offering similar a similar service –express mailing. The availability of substitutes made the demand for this industry elastic. The case also states that large customers weren’t known for their loyalty for a single carrier, once the contract was up, they look for the best bidder. Threat of Entry: The existent barriers of entry made hard for companies to enter the express mail industry. The costs of becoming established in this industry were so large that discourage potential entrants. For instance, a company entering this industry...
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...2011 Airborne Express EMI and the CT scanner Juan Perez Strategic Management Juan Perez Strategic Management |Airborne Case 1 Strategic Management 6/7/2011 First Case Analysis: Airborne Express Analysis of the Express Mail Industry: In order to have a clear understanding of Airborne’s position and to make recommendations about future moves, it is critical to examine the industry environment—competitors, customers, and suppliers—and examine the firm internally. To do so, the Porter’s five forces framework and a resource & capability analysis will be utilized. Threat of Substitutes: In today’s aggressive environment, product substitutes are regarded as one of the most threatening forces in competition. In the case of Airborne, it wasn’t the exception. There were other two main players (Federal Express and United Parcel Service) offering similar a similar service –express mailing. The availability of substitutes made the demand for this industry elastic. The case also states that large customers weren’t known for their loyalty for a single carrier, once the contract was up, they look for the best bidder. Threat of Entry: The existent barriers of entry made hard for companies to enter the express mail industry. The costs of becoming established in this industry were so large that discourage potential entrants. For instance, a company entering this industry would have to incur large upfront costs to operate, such as constructing a hub and several spokes, and purchasing...
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...Federal Express The Federal Express is an express transportation company, created in 1973 by an innovative entrepreneur Frederick W. Smith. During his college years, he saw the idea that the United States was becoming more of a service-oriented economy and that it needed a reliable, overnight delivery service company that would transport packages, documents, medicine, computer parts and electronics. Frederick Smith born in Memphis, TN in 1994 perhaps has became one of the most innovative entrepreneurs with his corporation. In 1966 he graduated from Yale University with an economics degree. While pursuing his career, “he authored a paper describing the concept of a freight-only airline that would fly all packages to one central point, where they would then be distributed and flown out again to their respective destination (Hisrich, 2010, pg. 226).” The operations would take place overnight when airports were less crowded, and with the proper logistics, the packages would reach their destination by the next day. The professor did not think the idea was feasible so Smith received a C grade for his paper. Fortunately for Frederick Smith, he didn’t take it to heart and ended up building that company he dreamed of. After graduating from Yale, he enrolled in the Marines he served two tours of duty, first as a rifle platoon leader in the U.S. Marines and later as an air controller. His four year term was well spent because it permitted him the opportunity to examine a working...
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...Airborne Express: Analysis of HBS Case Study Q1) 1. Threat of New Entry For the US Express Mail industry, the overall threat of new entry is very low. The following list and explanation captures the difficulty an entrepreneur might face in trying to penetrate the express mail market: * High capital requirements: In order to establish an express mail operation, the start-up capital required is too big for an individual to obtain. For example, Federal Express’ Superhub in Memphis has 2.4 million square feet of floor space and can hold 147 planes. UPS’s new hub will cost approximately $860 million. In addition, a cargo plane sells for $90 million. * Economies of scale: newly established postal service will have tough time competing against majors since small operation translates into higher prices for consumers. * Strong brand identification of existing firms: Express mail is an important part of doing business for many individuals and firms. They will naturally favor the traditional postal service that has gone through the test of times and proven reliable. * Aggressive reaction of incumbents: Both the first-tier majors and second-tier minors will react to a new entry by a player and will apply pressure by using their cost advantages and superior managerial knowledge. * Product differentiation: It will be hard for the new postal service to differentiate the company’s service since the express mail service has become standardized due to investments...
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...[pic] Executive Summary In the Express mail industry there are three major companies Federal Express, UPS and Airborne which make up 85% of the total market. Together the three companies shipped more than 5 million packages each day and over 98% arrived on time. Each company had different business strategies to achieve competitive advantage over each other but the basic infrastructure and activities among the companies were similar. Here Federal Express is the market leader which covered 45% of the domestic express mail and UPS took second place and covered 25% share .Federal Express and UPS always tried to copy each other’s action and when a competitor came up with a formula that attracted the attention of potential customers, the other were compelled to follow suit with similar services, or better yet, an improved version .On the other hand Airborne Express is the third largest and fastest growing international mail expresses company in America. It held roughly 16% of the domestic express mail market by 1997. The company has several advantages over its rivals, such as it provides delivery services at a lower cost of up to 20% over FedEx and UPS; it operates the nation’s only privately owned foreign trade zone in Wilmington; it is more flexible and provides more customer-tailored services. It charges lower price but still much guarantee delivery dates .In case of adapting or installing any technology Airborne competitive...
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...In the 1990’s, express mail was a profitable business, where individuals were spending almost $17 billion to ship items. Shipment volumes had increased 15-20% every year over the last ten years too. The three main shipping companies at this time were Federal Express, UPS, and Airborne Express. Airborne Express was the third largest shipping company during this time. Compared to UPS and Federal Express, Airbone needed to focus on the importance of service and speedy delivery to grow. Because the express shipping industry began to attract more business, UPS and Federal Express began a pricing war, resulting in Airborne’s ability to gain margins. Airborne Express was able to produce profits during this time by using its own sources of competitive advantage: 1. Continue to service companies who needed to ship large volumes of urgent item materials. 2. Less automation and more employees for sorting, allowing the company to hire more part time employees instead of full time. 3. Shipping was mainly in metropolitan areas, which allowed them to concentrate on afternoon deliveries or second day deliveries. 4. Allowed other companies to release new technology for the field and then would order the devices for Airborne, rather than paying for R&D up front. 5. Reduced operating costs by: owning its own airport to ship the items for customers, as well as utilizing older aircraft for shipping, no retail centers to maintain, and had outsourced to private couriers to deliver packages...
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...Business Opportunity Analysis [Airborne Express] Seoeui Hong 1316692 1. Identify the key buyers, products and geographies that Airborne Express, FedEx, and UPS try to serve. Are they similar or different? | Airborne Express | Federal Express | UPS | Product Line | Air-express transportation + provides delivery service of small packages and documents | FedEx Ground delivery (No shipment)(Business documents, electronic components, medical samples and replacement parts) | Ground delivery + express delivery by air(Courier Express Services Freight Forwarding Services Logistics Services) | | | | | Target Customer Segment | Business customers that regularly ships large volume of urgent items | All Segments | All Segments (For their basic business shipping envelopes and packages, anyone around the world who wants to ship an envelope or package) | | | | | Geographies | railroads, motor freight, water transportation, air transportation | railroads, motor freight, air transportation | railroads, motor freight, air transportation | | | | | The upper chart demonstrates a comparison among the three largest companies- Federal Express, UPS, and Airborne Express. The physical, information, and human assets deployed to accomplish this feat varied from company to company, but the basic activities are similar in terms of products, target, and geographies. But, there are some different...
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...Federal Express – delivering the goods Kevan Scholes This case study looks at how new business models can create vast improvements in competitiveness. However, the models must be suited to the business environment at the time and will have a ‘shelf-life’ as the business environment changes. The case study looks at one on the world’s most successful adopters of a new business model that transformed the airfreight and package delivery sectors worldwide. But the advent of the internet in the mid-1990s meant that the FedEx business model had to change or the company would decline. This is also the story of how it rose to that challenge. l l l In 1965, Yale University undergraduate Frederick W. Smith wrote a term paper about the passenger route systems used by most airfreight shippers, which he viewed as economically inadequate. Smith wrote of the need for shippers to have a system designed specifically for airfreight that could accommodate time-sensitive shipments such as medicines, computer parts and electronics. In August of 1971 following a stint in the military, Smith bought a controlling interest in Arkansas Aviation Sales, located in Little Rock. While operating his new firm, Smith identified the tremendous difficulty in getting packages and other airfreight delivered within one to two days. This dilemma motivated him to undertake research on how to resolve the inefficient distribution system. In an interview with Fortune Small Business in 2002 he explained his business...
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...Airborne Express Case Q&A Info other than Case * Airborne Express is acquired by DHL in 2003 * DHL retained ownership of Airborne's ground operations and spun off its air operations as ABX Air, Inc. * Currently DHL is the number 1 delivery service company.(2nd is Fed Ex and 3rd is Blue Dart) Airborne Express Case Q&A 1. Consider the structure of the Express Mail industry in the US and how it has evolved. Why has it evolved this way? 2nd heading is about Express Mail Industry in US (in case study given) * In 1996 shipments was $16-17b Company. * Quick on-time physical delivery was coming * Use of technology was changing the game like routing * Tracking of shipment was a new service offered * Customer service was improving 2. What is Airborne’s strategy? How has it positioned itself in the industry? How is it different from FedEx or UPS? * Targeted business customer that regularly shipped large volumes of urgent items like Xerox (Position) * Never advertised much publically, instead focused on larger shipping companies * Sales force was given good freedom to negotiate volume discounts. * It positioned themselves as low price service. * They owned airports which served as its major hub to reduce the operational cost * Selective in technology selection. Wanted others to use it first. 3. How does Airborne deliver value to its customers? * High-quality, reliable service * Company offers...
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...Package Express Delivery Industry, 1973-2010” The small package express delivery industry is a very complex and competitive Industry that take a lot of combating and strategic approach to get them to a profitable state. Many of the companies in the industry have integrate the Porter’s Five Forces model to give each of the companies the possibility to make profits with a low risk of entry and a weak bargaining power of suppliers. There has been an intense rivalry between these company and the strong bargaining power of buyers has had a negative impact over the prices which have begun to lower revenues for some of the companies. The most interesting thing about this specific case was the struggle of the global delivery company DHL to penetrate the American market. However, the focus of this paper is primarily on delivery system of Federal Express (FedEx). The paper will analyze FedEx’s value creation frontier in order to determine which of the four building blocks of competitive advantage the company needs in order to continue their above average profitability. It will also explore the main aspect of product differentiations and capacity control of the company to maintain an edge on their rivals. Furthermore, the efficiency of FedEx will be assessed in regards to its current business model viability in order to recommend a new business level strategy that gives that company a competitive advantage over the rivals in the industry. Additionally, this paper will express which ...
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...The Parcel and Express Delivery Industry Mary Wright MBA5160-Managerial Economics-XA Virginia College Abstract This paper explores two of the leading parcel delivery oligopolies in the United States, as well as abroad. The content discussed is a result of research that was conducted both online (Internet) and offline (non-Internet). The parcel giants UPS and FedEx have dominated the delivery industry for several years dating as far back as 1907 research states. This paper will also detail how these types of services have made such a huge impact on the way consumers shipped and received goods. The timeline offered through both companies online websites detail the evolution of each company’s growth and development into the powerhouses that they are today. The Parcel and Express Delivery Industry The American Messenger Service was founded in Seattle Washington in 1907 by James E. Casey. 19-year-old Jim, as his friends referred to him started the small messenger service from a loan of $100 that he borrowed from a friend. Jim who was no stranger to the delivery business decided to strike out on his own. He and his partner Claude Ryan and their team which included Jim’s brother George took up shop in their basement headquarters taking on several odd jobs delivering packages, baggage, notes, ran errands and at times delivered trays of food from local restaurants. Automobiles were sparse at the time so most of the company’s deliveries were made on foot and by bicycle if...
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...tablets with Android operating system, = (299+530+525+360) /4 = $428.50 So, the cost of a tablet with windows is about 1.7 times more expensive than an Android. c. Percentage of tablets using CPU manufactured by TI OMAP = (2/10)*100 = 20% d. Percentage of tablets using Android operating system = (4/10)*100 = 40% 7. a. The data collected by Kroger in this example are Categorical. b. Nominal measurement scale has been used. 8. a. The sample size for this poll is 762. b. The data are categorical. c. It make more sense to use percentage in this kind of survey. d. Number of individual saying Yes = 67% of 762 = 511 13. a. The variable of interest is federal spending. b. The data are quantitative. c. The data are time series. d. The federal spending increases between 2004-2009 and after this period between 2009 and 2012, the result are almost stable or decreasing and increasing a little bit but nothing really relevant. 14. a. b. The graph above shows that the Hertz with large number of services and Dollar with least in 2007. But in 2009 Avis slightly exceeds the number of services than that of...
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