...COURIER: A courier delivers messages, packages, and mail. Couriers are distinguished from ordinary mail services by features such as speed, security, tracking, signature, specialization and individualization of express services, and swift delivery times, which are optional for most everyday mail services. Considering it as a premium service, couriers are usually more expensive than standard mail services, and less typically faster delivery. Courier services operate on all scales, from within specific towns or cities, to regional, national and global services. Large courier companies include DHL, FedEx, EMS International, TNT, UPS, and Aramex. These offer services worldwide, typically via a hub and spoke model*. *NOTE: The hub and spoke model is a system which makes transportation much more efficient by greatly simplifying a network of routes. It is extensively used in commercial aviation for both passengers and freight, and the model has also been adopted in the technology sector as well. SOME TYPES OF COURIER SERVICES: 1. International Courier: The name of the service somewhat gives it away, but the International Courier service is all about providing customers with a solution to get their package from one country to another no matter the requirement for transportation by air or sea. 2. Same Day Express Courier: This service includes the delivery of the parcel/freight/mail within one working day. This service can often come in different disguises...
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...Product A number of products are offered including • FedEx Express is the second largest civil fleet around the world providing services across U.S. mainland, Puerto Rico, the Dominican Republic, and other Caribbean islands. • FedEx ground provides services around America and Canada. • Home delivery and smart posts are also offered. • FedEx trade networks provide custom and insurance. • A toll free help line is provided to the customers at FedEx TechConnect. • Other products include FedEx Supply Chain Services, FedEx Corporate Services, FedEx Office and Print Centers, and FedEx Ship Centers. •Customer care centers are always alert for criticism. Price • FedEx offers its discount program on FedEx ground specifically. • Pick up services are provided with $6 as its additional cost. • FedEx Ground will provide pickup service to business locations, upon request, for an additional charge of $6 per week. Placement Mainly located in United States and is catering the services with in America and Canada but also approaches to the destinations worldwide through its air fleet. Promotion • FedEx campaigns runs in the print media throughout the year. • Spends heavy amounts on Commercial ads, that’s why high quality ads are formulated and remembered for years like John Moschitta ad. • The company ahs been a chief and sometime sole sponsor of motor sports, football and a number of sports being played at a junior level. • One major reason of its success is political lobbying...
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...Fedex Overview | Remarks | Business | | 19000 packages a day75 cities (fly on commercial passenger flights)75 pounds, max 108 inchesMost shipment is less than 50 pounds, 90% are individual pieces | | Fleet – 32X Dassult Faclcon – 6,200 pounds capacity (Air taxi operator, less regulation)9 contract aircraft500 vans | | Hub based in Memphis, Tennessee, a reliable base point, airplane flew in from cities to hub, organized, back to cities in early morning/ 2nd hub in pittsburg | | | | Business Mix | | Courier Pak | | Overnight deliver of documents or items up to 2 pounds in a spcial, water proof, tearproof envelopes, 12 x 15 x 0.5 inches$12.5 for allNeed to purchase 5 paks in advanceOvernight delivery anywhere1,300 packages a day (foresee 6,000) | | P1 - $23.56Next day deliveryAvg 14 pounds*Research shows 93% P1 package got delivered the next day | Potential? Took up a lot of space of aircraft, cannot maximize the potential to make profit<<< Marketing Message for those timid shipper | SAS - $12.622nd business day delivery | | | | Customer | | 31,000 – 15,000 used service in any one month | A lot of repeated customer (50%) | Who are they? Time-sensitive, high-priced, finished goods producers | Marketing Strategy? | Who are they? Traffic Manager, Mail room Supervisor, Shipping Clerk, Dispatcher of organization, but they are restricted to use the firms list of “approved carriers” - They are timid individuals, avoid making troubles...
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...Case Commentary This is a case about the company FedEx, a courier delivery service in US, which initially started off on a small scale and then started ramping up its facilities to reach the number 1 spot among all courier services. In June of 2000, FedEx, initiated Project ARISE .The major goals of project ARISE pertained to two major issues: the first was with respect to unifying the sales and marketing groups for both FedEx Express (air) and FedEx Ground (ground). The second issue was to develop a new compensation plan for the account executives now that their focus was on two different services (FedEx Express and FedEx Ground).In Jan 1998, FedEx acquired RPS, which would later become FedEx Ground, in order to diversify its delivery capabilities to both air and ground. Internally, combining these two departments would prove to be more cost effective; from a customer standpoint. Main issue How to evaluate the best account executive compensation plan for the integrated FedEx Express and FedEx Ground services that is in accord with the goals of Project ARISE. RECONMENDATION Solutions from FedEx end should be that they encourage cross-selling, and a first step in this process would be to declare quotas for sales force of both the firms. There is also a need to create a compensation plan that has greater clarity so as to give the sales force even more incentives. To properly connect both the Ground and Express lines of FedEx under a single sales team, a distinct...
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...Business Strategy United Parcel Service (UPS) Overview United Parcel Service, Inc. was founded in 1907 as a private messenger and delivery service in Seattle, Washington. Today, UPS is the world’s largest package delivery company, a leader in the U.S. less-than-truckload industry and the premier provider of global supply chain management solutions. It deliver packages each business day for 1.6 million shipping customers to 8.2 million receivers ("consignees") in over 220 countries and territories. In 2014, it delivered an average of 18.0 million pieces per day worldwide, or a total of 4.6 billion packages. Total revenue in 2014 was $58.2 billion. It are a global leader in logistics, and it create value for its customers through solutions that lower costs, improve service and provide highly customizable supply chain control and visibility. Customers are attracted to its broad set of services that are delivered as promised through its integrated ground, air and ocean global network. Its services and integrated network allow shippers to simplify their supply chains by using fewer carriers, and to adapt their transportation requirements and expenditures as their businesses evolve. Across its service portfolio, it also provide control and visibility of customers’ inventories and supply chains via its UPS technology platform. The information flow from UPS technology drives improvements for its customers, as well as for UPS, in reliability, flexibility...
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...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 behavior was response and when there was a clear derived benefit for their customer that time they adapt new technology. Airborne chose to be being selective in case of targeting the customer and they selected to serve the business customer. In case of international operation Airborne did not invest heavily like Federal Express and UPS. They invested wisely and followed variable cost approach....
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...Marketing Case #1: Federal Express (FEC) Situational analysis Consumer | Small packages (up to 2 lbs) must be delivered in a reliable and timely manner. Delivery confirmation would help. | Competitor | USPS (Express Mail), Emery (much bigger brand name), smaller airfreight forwarders, REA Air Express, Airlines, *local freight companies (hard to match local relationships) | Company | Courier Paks at flat rate, self-contained delivery/flight system (sustainable), People-oriented culture (employee satisfaction seems high) | Collaborators | Local storage/sorting facilities, truck drivers, salesforce, researchers (comparing Express Mail reliability) | Context | The airfreight industry is becoming cutthroat and companies are copying business models and popping up everywhere. Express mail is taking off but at a per distance and weight cost basis. | Setting the strategy Segmentation | Basic consumer (20%) , Manufacturing and distribution (17%), Advertising (8%) – Reliability is key across segments | Targeting | Businesses with lots of paper pushing and the general consumer | Positioning | Reliability, All American Jets (America’s Shipper), Flat rate package – Possible expansion into bigger courier packs | Value proposition Product | Flat rate box – We run our own airline | Place | Toll free number to call about locating local courier pack provider – You’d want couriers to keep stores of packs on their trucks to sell | Promotion | Convince customers...
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... 1. Fedex Weblogs 2. Fedex on Youtube 3. Fedex on Facebook 4. Fedex on Twitter 1. Conclusion and recommendations Introduction: Federal Express (FedEx) is one of the worlds leading transportation companies. In today's globalized economy goods need to be moved from one end of the world to the other just as fast as emails are sent and received. However, unfortunately this is not possible and it is FedEx’s job to deliver packages and goods as fast as possible in order to satisfy its customers. In order to do this the company prides itself on having some of the most technologically advanced systems in the transportation industry, which allows them to move goods faster, and more reliable than its competitors. The company has always valued technology; in 1975, just five years after it was founded it pioneered the first automated customer service center. Having such a vast portfolio of operating companies, FedEx Ground is the topic of concentration throughout this report. FedEx Ground has a purple and Green FedEx logo. A leader in small-package ground shipping, offering their services to business and residential customers throughout the U.S and Canada. With their efficient use of technology they can move goods around the U.S overnight or up to 7 business days. However, they can ship goods cross border Between Canada and the U.S in 2-7 business days – also the case for all Canadian shipments. The major technological aspects of FedEx Ground will...
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...FedEx Case Brief Under Frederick W. Smith’s superb supervision and leadership, FedEx has become a renown express delivery courier worldwide, handling about 8.5 million shipments daily. Today, the company is different of what it used to be back in 1971. It has continued to nurture and grow over the past 40 years and still holding onto the company’s culture – quality service to customers. Difficulties were faced during the process, such as problems with coordination, maintaining efficiency, satisfying customer expectations and handling employees. In order to resolve this, a strict hierarchy of leadership has to be implemented. Smith restructured the team’s approach to improve productivity by giving teams more authority and responsibility in order to sustain quality satisfaction among customers and the increased in productivity. What we can learn from this would be that its crucial to not hold back people’s ideas and thoughts. In many cases, they probably handled the situation in a better way than any of us do at the point of time. It is only right to hear what people have to offer and say before we reject their ideas and in unforeseen circumstances, would likely see a decrease in efficiency and productivity in the outcome. FedEx uses a three way operating strategy that works seamlessly. Smith’s leadership lead the company to success and solved problems they used to have, couriers departed early towards their destination and number of packages arrived late were halved. We can see...
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...Abstract A leading company in the transportation agency, FedEx is known all around the world for its fast and on time delivery. Its slogan, “when it absolutely, positively has to be there overnight” says it all for the company. When one needs to get a package or parcel anywhere FedEx is one of the top choices. The company’s primary competitive advantage is its IT infrastructure. FedEx was the first to introduce a real corporate website where customers could print their unique barcode and have it picked up, track their packages and verify pricing and other helpful information. In this analysis different functions of the company are reviewed, such as different factors affecting the company, the key challenges and the recommendations to the company. FedEx: When it Absolutely, Positively has to be there Overnight About FedEx Headquartered in Memphis, Tennessee FedEx is the world’s express delivery. FedEx offers a variety of international packages and document delivery services to 214 countries, as well as freight services. On February 2004 FedEx acquired Kinko’s Inc. Now together the company provides document solutions and business services including copying, scanning, printing services, graphics, video conferencing, wireless and wired internet. FedEx is best known for its motto “when it absolutely, positively has to get there”. Fred Smith founded FedEx in 1971 and incorporated management philosophy that made FedEx a rapidly shining business in the industry. The principles...
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...Case Analysis: Airborne Express (A), Harvard Business School. Not so long ago, there was no such thing as overnight express service and freight delivery. Then Federal Express, United Postal Service (UPS) and Airborne Express, among six second-tier companies, came upon the scene. In 1973, Federal Express invented the concept of overnight express package, soon followed by the other two largest express companies–UPS and Airborne, during the 1980s. The fast growth of the Express Mail industry was mainly due to the success of the express delivery service. Thanks to Frederick Smith, a Yale undergraduate back in 1965, who had envisioned a whole different system on his economics term paper. Smith proposed an airline dedicated exclusively to express delivery of mail. Regardless of a “C” grade received on his paper, Smith incorporated Federal Express in 1971and officially began operations on April 17, 1973. Some of the features in the evolution of the Express Mail Industry includes but is not limited to the creation of the hub system and air express service. Created by Federal Express, the hub system is the symbol of the modern air courier industry. It made possible the large-scale, overnight deliveries and it has remained the standard operating method in use to this day. This system allows air courier industry to ship all freight to the company’s central hub, where it is sorted, and rerouted to its final destination. Also under consideration, the air express service played an important...
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...------------------------------------------------- Fedex SWOT analysis July 14th, 2010 webmaster Leave a comment Go to comments Federal Express Corporation (Fedex) was established in 1973. Since then, Fedex had become a global logistics and supply chain management. The company had invested heavily in information technology systems. It had a powerful technical architecture that had the potential to pioneer in Internet commerce. However, there are some difficulties, the company’s logistic and supply chain operations have trouble to keep up the company’s image, The transportation volume growth was slowing down because the competitive industry was too intense. In early 2000 The company announced major reorganization within the entire Fedex family. Each five subsidiary companies was to function independently but to compete collectively. In order to analyze the situation carefully an external and internal analysis of the company and industry must be done so a complete picture of the industry could be understood. External analysis: Determinants of threat of new competitors: The global express transportation and logistic industry has a very high barrier to entry because it requires enormous capital resources, economies of scale and brand identity. Large firms have a cost and performance advantage in the industry. All of the established firms had a very strong foothold in the global market as they have established brand identities. There are economies of scale in the industry:...
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...fourteen small jets at its disposal, FedEx today has more than 560 aircrafts – making them the largest all-cargo air fleet in the world. The total daily lift capacity of their fleet exceeds 26.5 million pounds. Within 24 hours it travels approximately 500,000 miles. With the 2.5 million miles the FedEx Express couriers log a day; it is equivalent to 100 trips around the earth. A need that already has been identified rarely provides companies with big business opportunities. The greatest opportunities arise when you detect a completely new need that your customers didn’t even recognize themselves until you offered a solution to them. That is the success story of FedEx with its overnight delivery system. The company was named “Federal Express” because of the intended associations with the word “Federal” since it expressed an interest in nationwide economic activity. Another trace to the name is the proposed contract with the Federal Reserve Bank, which the company hoped to attain at that time. Although the proposal was denied, the name “Federal Express” was chosen since Smith believed it was a particularly good one for their purposes. It draws public attention to the business and facilitates name recognition. While the ability to identify an unidentified need provides a great business opportunity, it tends to remain useless if a company fails to come up with a new and innovative way of meeting it. The delivery of a new service can be quite tricky. FedEx solved it brilliantly by its hub-and-spoke...
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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...
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...Federal Express Corporation (Fedex) was established in 1973. Since then, Fedex had become a global logistics and supply chain management. The company had invested heavily in information technology systems. It had a powerful technical architecture that had the potential to pioneer in Internet commerce. However, there are some difficulties, the company’s logistic and supply chain operations have trouble to keep up the company’s image, The transportation volume growth was slowing down because the competitive industry was too intense. In early 2000 The company announced major reorganization within the entire Fedex family. Each five subsidiary companies was to function independently but to compete collectively. In order to analyze the situation carefully an external and internal analysis of the company and industry must be done so a complete picture of the industry could be understood. External analysis: Determinants of threat of new competitors: The global express transportation and logistic industry has a very high barrier to entry because it requires enormous capital resources, economies of scale and brand identity. We can write a Custom Research Paper on Fedex for you! Large firms have a cost and performance advantage in the industry. All of the established firms had a very strong foothold in the global market as they have established brand identities. There are economies of scale in the industry: firms have to be big enough to provide services in many countries...
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