...UESTION FOR DISCUSSION 1. FedEx entered in to China in 1984 through a joint venture, while UPS entered China in 1988 through an agent partnership relationship. Critically examine the contrasting strategies adopted by both the companies, while entering and expanding their service network in China. The case discusses in detail about the entry and expansion strategies of the two US-based logistics companies - FedEx and UPS in the Chinese market .The case examines the contrasting strategies adopted by FedEx and UPS in their efforts to establish presence in China. FedEx followed an aggressive, high risk, more investments approach to expand its services network in China which enabled the company to capture higher market share .On the contrary, till the late 1990s, UPS followed a conservative, low risk, low investment approach to establish its presence in China. The case brings out the contrasting elements of the strategies adopted by both companies including establishing the services network, advertising and promotion, targeting customers and the investments made. Finally, the case examines how the expansion strategies of both companies have changed with the improving business prospects in China, following its entry into WTO. The case discusses in detail the entry and expansion strategies of the two US-based logistics companies - FedEx and United Parcel Services (UPS) - in the Chinese market. The case examines the contrasting strategies adopted by FedEx and UPS in their efforts...
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...Airborne Express Group 2: Melody Mohns, x2010mpy@stfx.ca Laura Moreira-Andrews, x2010myw@stfx.ca Patrick Hale, x2010ofw@stfx.ca Abigail Weber, x2010nez@stfx.ca Conner Cameron, x2010oon@stfx.ca Patrick Gormley, x2010asx@stfx.ca | | April 4th, 2014 EXECUTIVE SUMMARY 3 paragraphs or less Written to CEO Respectful, professional tone Outline core issues, analytical approach taken by team and key recommendations Include all team members’ names TABLE OF CONTENTS Strategic Analysis | 4-5 | Appendix 1: Firm Overview | 6-7 | Appendix 2: External Analysis | 8-9 | Appendix 3: Internal Analysis | | Appendix 4: Strategic Alternatives | | Appendix 5: Strategic Alternatives- Evaluation and Decisions | | Appendix 6: Recommendations | | Appendix 7: Implementation Plan | | Appendix 8: Contingency Plan | | References | | STRATEGIC ANALYSIS Main body of report Senior management audience Discuss key issues and strategic analysis in more detail then the Ex Summary Outline all alternatives considered Details on all recommendations and the timelines and costs of implementation Use sub-headings to organize and direct the flow of info APPENDIX 1: FIRM OVERVIEW This section provides an overview of Airborne Express. It includes information on their vision statement, mission statement, their current strategy and performance, business objectives and Airborne Express’ present situation. It is intended to help provide context...
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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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...Perspective Alexander Niehues Edward Tse Justin Zubrod Express Opportunities In China Packaging a Strategy For the International And Domestic Express Delivery Market Booz & Company is a leading global management consulting firm, helping the world’s top businesses, governments, and organizations. Our founder, Edwin Booz, defined the profession when he established the first management consulting firm in 1914. Today, with more than 3,300 people in 58 offices around the world, we bring foresight and knowledge, deep functional expertise, and a practical approach to building capabilities and delivering real impact. We work closely with our clients to create and deliver essential advantage. For our management magazine strategy+business, visit www.strategy-business.com. Visit www.booz.com/cn to learn more about Booz & Company in Greater China. CONTACT INFORMATION Hong Kong/Shanghai Edward Tse Partner edward.tse@booz.com McLean Justin Zubrod Stuttgart Partner justin.zubrod@booz.com Alexander Niehues Partner alexander.niehues@booz.com Originally published as: Express Opportunities in China: Packaging a Strategy for the International and Domestic Express Delivery Market, by Ed Tse, Justin Zubrod, Alexander Niehues, Simon Gillies, and Paolo Pigorini, Booz Allen Hamilton, 2007. 1 Express Opportunities in China Packaging a Strategy for the International and Domestic Express Delivery Market Introduction China is on its way to becoming a global trade...
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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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...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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...Introduction DHL Worldwide Express headquartered in Bonn, Germany, a privately held worldwide delivery service comprised of DHL Airways and DHL International, is the world’s oldest and largest international air-express company. They begins by operating door-to-door express delivery express, transporting documents only between San Fransisco, California, and Honolulu, Hawaii. DHL was founded by three young shipping executives; Adrian Dalsey, Larry Hillblom, and Robert Lynn who were casting about for a way to increase turnaround speed for ships at ports. On 25 September 1969 they incorporate DHL. In 1998, Deutsche Post began to acquire shares in DHL. It finally reached majority in 2001 and completed the purchase in 2002. Finally, by 2003 this company status is under the business group of Deutsche Post World Net (DPWN) Germany. Deutsche Post then effectively absorbed DHL into its Express division, business units and subsidiaries. Currently they delivering to over 70,000 destinations in 227 countries with 6,500 offices around the world, the company had over 150,000 employees globally. Belgium-based DHL International (DHL), in collaboration with its Chinese partner; Sinotrans which was also known as the China National Foreign Trade Transportation (Group) Corporation, launched an international express service, in China. Its core business was transporting documents and packages, which was a door-to-door delivery service particularly targeting parcels and freight items. The service...
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...these processes and advancements uniquely in their own respective way. FedEx, DHL and UPS, with their different backgrounds and approaches have become undoubtedly great competitors. The three of them are considered the largest global air cargo companies, and are recognized for their widespread services delivering shipments worldwide. In the year 1971, Federal Express Corporation was founded in Little Rock, Arkansas. A few years later 1975, FedEx installed the first drop box for the public. Since achieving that milestone the company developed and maintained a “strategic leadership in managing a broad group of transportation services, e-commerce and other business services.” (About FedEx: Website - http://about.van.fedex.com/our-story/history-timeline/history/) Going back all the way to “1913, C.J. Tower & Sons, forerunner to FedEx Trade Networks subsidiary FedEx Trade Networks Transport & Brokerage, begins operation as a customs broker in Niagara Falls, N.Y.” The company offers integrated business solutions through a network of subsidiaries operating independently, including: FedEx Express, the world's largest express transportation company; FedEx Ground, North America's second largest provider of small-package ground delivery service; FedEx Freight, a leading provider of regional less-than-truckload freight services; FedEx Custom Critical, the world's largest...
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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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...the documents to reach destination before sea containers arrive to expedite clearance process and in few years initiated service to Philippines, Japan, Singapore, Hong-Kong and Australia, in which by this DHL created international express door-to-door service in the Pacific Basin. Expansion continued as the company initiated service to Europe in 1974, Middle East in 1976, Latin America in 1977, Africa in 1978 also DHL was the first to bring the express air service to the Eastern community countries in 1983 and to China in 1986. DHL added express parcel delivery in 1979 as before this it was only for document business. In 2002 DHL became a fully owned subsidiary of Deutsche Post, which has a history going back to 1490. In 2003 rebranding started and for the strong brand of DHL worldwide, the group choose the name of DPDHL to brand its four divisions (Express; Global Forwarding, Freight; Supply Chain; Mail). DHL now reaches 120,000 destinations in 225 countries, total facilities amounting to 4,700, 72,000 vehicles; 285,000 employees, a base of 4.2 million customers, moving 1.8 billion shipments annually and 66 billion € yearly revenue for the whole group. With its ‘2015’ strategy, DP-DHL aims to be the provider, employer and investment of choice. DHL Express (DHLE) division simplified these goals to four pillars ‘profitable network’, ‘motivated people’, ‘loyal customers’ and ‘service quality’. These 4 areas of focus should support DHLE achieving the group main...
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...Corporate Governance at American Express By Ahmet Emre Kuzudisli BUS 707 – Corporate Governance 8130 Boone Blvd Suite 240 Vienna, VA 22182 (571) 721-0934 aemreku@gmail.com Instructor: Dr. Shawn P. Richmond Washington Baptist University, Fall 2014 ABSTRACT This project will serve as a research and report of corporate governance at American Express. The company, founded in 1850, is 124 years and is ranked #67 on Fortune’s list of Best Companies 2014 (Fortune, 2014). There are so many perks of working at American Express such as paid 28 day vacation, Hyatt legal services and educational assistance. After one year employees are able to get 6 weeks of paid vacation following the birth or adoption of a child. TABLE OF CONTENTS Introduction 4 Corporate Background 4 Products/Services 4 Vision/Mission Statement 4 Rank/Industry 4 Jobs/Pay 4 Benefits/Health 4 Board of Directors 4 Analysts 4 Creditors and Credit Rating Agencies 4 Securities and Exchange Commission Reports 4 Risks 5 Corporate Citizenship 5 Conclusion 5 References 6 Introduction This paper will serve as a report on American Express, one of the best companies for employees in 2014. The corporate governance at American Express is highly professional and impressive this is why they are ranked #67th position in all over the world in 2014. This paper will represent how this well-oiled machine works...
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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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...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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...NAME: MITCH B. MENDEZ DATE: NOV. 26, 2015 CASE STUDY: ALDI 1. How does ALDI’S strategy lead to competitive advantage? How does the company achieve this strategy? * A competitive advantage is one that distinguishes a firm or a business from the competitors in the minds of the customers. It also refers to the state or condition that make a business more successful than the businesses it is competing with, or a particular thing that makes it more successful such as having a higher sales through offering low or affordable goods and services. Most of the businesses operate in competitive markets: businesses have to take on and see of rivals or competitors.ALDI, a grocery discounter is one of these businesses or companies. ALDI uses a low cost strategy through providing good quality products at affordable prices. So, ALDI’s strategy certainly and absolutely leads to a competitive advantage for through a low cost strategy it can lead to a strong market share for the reason that the main target of most of the consumers are those products with high quality offered at low price. It can also stimulate a greater demand towards the consumers: the reason why most of the customers or consumers are attracted to it. In addition, despite the low cost that they are offering their customers or consumers, quality is still not compromised with the amount which attracts the customers the most. Another is that goods and services...
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