Introduction Federal Express main products are delivering packages to widespread locations within a short time. In this case study, we would focus our discussion on its most profitable services, i.e. Priority One, Standard Air Service, and Courier Pak (Table 1). Federal Express Product FedEx specializes in guaranteed overnight delivery of high-priority packages, documents, and heavy freight. How does Courier Pak fit in Federal Express? For services users Courier Pak is a guarantee overnight delivery service, and is expected to be delivered to anywhere within the FedEx system for the cost of $12.5 with the weight up to 2 pounds regardless the distance of the destination. Courier Pak's waterproof, tearproof envelope offered a unique physical shipping method to the customers, and provided protection for the documents & accommodates their security need. For Federal Express As mentioned in the case, there is a significant market potential (almost 870000 pieces per day) for documents and small package mailing. An analysis shows that in FEC stations, the volume for Courier Pak is 30% more than Priority One. That means Courier Pak market has a growing potential. In addition, it is found that the variable cost of it is the lowest among all other overnight delivery services provided by Federal Express (Table. 2). That means Courier Pak may be a more profitable product. Our analysis Current situation Typical users of airfreight were producers of time-sensitive, high priced, finished goods such as valuable architecture and confidential documents. But in 1976, a spring survey shows that only 24% customers used both Courier Pak and Priority One services while less than 1% of them used only Courier Pak. Moreover, the cap... ... middle of paper ... ...s. Experiments can be shown to the potential customers that important documents using Courier Pak is far safer than using other types of paper bags. In the advertisement, FedEx can point out that the customers need to spend only a specific price for the package weights up to 2 pounds, the packages can be delivered to anywhere within FedEx¡¦s operational territory by overnight Courier Pak service. Emphasized on the speed, reliability and security Courier Pak provided compared with their competitors. And the people ¡V oriented philosophy FedEx applied, which they put this as their core business while the other treat it as their sideline business. Conclusion Base on the product market fit, Courier Pak completely fit the company, from the environmental, company, cost and competitive standpoint. So we think that FedEx should devote special emphasize to Courier Pak.
Schrager, M. (2012). Why FedEx’s Marketing Efforts are the Perfect Package. Business Marketing Association, Chicago. Retrieved Nov 12, 2013, from
Amazon US has found success from optimizing their shipping process; due to the fact that there is only one postal service serving the entire nation. This is not the case in Europe. For two of the considered alternatives, increased delivery and lead time will occur due to distance between distribution center and customers. European postal carriers are fast but lack in cross border efficiency. Express delivery creates more uncertainty. Amazon Europe should consider making a partnership with international shipping companies, like UPS and FedEx, to receive a discount on high shipping fees while improve cross-border shipping difficulty. Delivery time and customer satisfaction are crucial for Amazon Europe’s success.
The organization is able to build a barrier to new entrants in parcel industry. It is very expensive to set up the services that are equal to the existing organizations. There is high fixed cost associated with establishing the required international transport network. This includes ground transportation vehicles, depots, plants and a retail
EasyJet’s provision of low cost flights and it basis of “the earlier you book the ticket, the less you pay“ gives it opportunity to target its customers. EasyJet also provides a number of aircrafts in various airports thus easily accessibility of their services; this acts as it drivers in the market control and competitive advantage. It also has the advantage of providing other services such as car hiring, internet services and restaurants (Saleem, 2010). The ‘Europe by easy jet’ established a resounding brand positioning that is effective across all the main markets and enhanced visits to easyJet.com. EasyJet targets the consumers through various channels that help them to reduce marketing cost per sales. In 2001, EasyJet launched ‘easy Jet mobile app” which was downloaded by over six million people which accounted for 5% of overall sales. Mobile boarding cards are available through the app and make it easy for cust...
Federal Express is the world’s largest package delivery company today. They have been successful mainly because of their technological advancements. Technology has allowed them to have superior customer service and quality that was unparalleled by any company. No company was able to offer overnight delivery of packages with the speed and precision that Federal Express did. Although Federal Express remains ahead of its competition today, their advantages over other firms in the industry are slowly diminishing.
Airborne Express is an air-express transportation company that provides delivery of small packages and documents throughout the United States and to and from many foreign countries.
Besides to the dramatic change of internet to the consumer purchasing pattern and retailer selling pattern, the consumer today have become less tolerant of service failures and likely to expect better services that are more than the average. In addition to this, the consumer demands more for personalized service. It can be a difficult task for FedEx to satisfy all customer needs.
The City Couriers case study will be examined in regards to the company’s overall performance. The internal and external environments of City Couriers will be analysed in regards to the key performance requirements and key success factors. Issues with performance measurement, feedback, development and remuneration will be identified. Furthermore, the issues relating to validity, reliability, fairness and cost-effectiveness in the management of both performance and remuneration will be explored. This assessment aims to highlight the current situation and areas of improvement at City Couriers.
FedEx provides shipping services through FedEx Express, Ground, Freight, Custom Critical, Trade Networks, and Supply Chain (FedEx, 2014). Tracking and package management services are available for all services through fedex.com (FedEx, 2014). FedEx also shares knowledge of shipping best practices on its website (FedEx, 2014). FedEx Office is another division of FedEx, where customers have an in-store option for taking care of their shipping, copying, and printing needs (FedEx, 2014). FedEx connects our global economy by linking 99 percent of the world’s GDP (FedEx, 2014). FedEx Express services every US address, as well as 220 other countries (FedEx, 2014). Some of the corporation’s new services include FedEx Delivery Manager and One Rate (FedEx, 2014). FedEx Delivery Manager is a service that is tailored to the needs of the recipient of a package (FedEx, 2014). FedEx One Rate is simply that, flat-rate shipping without the weighing and measuring (FedEx, 2014).
Express mails are for individuals who need their item delivered overnight. It is guaranteed to arrive at the desired location on time and is less pricey through this mailing distributor. Priority mail is the method most people prefer. It will get a package or letter to its wanted whereabouts in three to four business days. Price wise this is less expensive in comparison to competitors offering the same service. In addition, they make a flat rate priority mailing option. Flat rate means, as long as, the contents fit into pre-sized boxes the cost is always one rate for that carton. If a person wishes to trace their parcel during transportation, they need one of two utilities. They are delivery and signature conformation. Both are used to track mail piece...
Cost cutting; Technology plays a significant part in package delivery companies capability to assist customers in cutting their inventories which UPS owns. The UPS system processes packages using advanced information technology and are transported by the companies’ own aircraft, fleet or delivery vehicle so UPS does not rely on other companies.
According to CIO Robert Carter, FedEx has always been a technology driven organization. To begin with most of the technological innovations in FedEx were driven by business need. FedEx was the first delivery company which provided real-time shipping information to the customer by introducing the COSMOS (Customers, Operations, and Services Master Online System) in 1979. COSMOS is a centrally operated computer system which FedEx uses to date to manage people, delivery packages, delivery vehicles (planes and vans), weather related changes etc. FedEx founder Fred Smith is famous for saying, “The information about the package is as important as the package itself.” (Baldwin, 2013). Pre-COSMOS most of the field operations for FedEx were decentralized,
Shuk-Ching Poon, T. and Waring, P. 2010. The lowest of low-cost carriers: the case of AirAsia. The International Journal of Human Resource Management, 21 (2), pp. 197--213.
... input. FedEx also is very interested in promoting from within. 92% of current managers have moved up through the company. This shows a dedication to improving the skills of followers and their success. This also proves to the employees that working hard to possess the characteristics of Kelley’s “exemplary follower” pays off with promotions and increased salaries. FedEx obviously believes that the best followers make the best leaders.
1. Issues 2. American Airlines’ objectives 3. The airline industry 4. Market 5. Consumer needs 6. Brand image 7. Distribution system 8. Pricing 9. Marketing related strategies 10. Assumptions and risks