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Tnt Strategic Marketing Plan
Executive Summary The aim of this report is to make an in–depth research on TNT Asia region. In first part, we will analysis the internal influences by
Porter 's Five Forces model. In second part, PESTEL model will apply for external influences. Lastly, SWOT analysis will be provided as a conclusion.
Content Page 1.Introduction3 2.Micro–environment3 2.1Industry Competitors3 2.2Buyer3 2.3New Entrants3 2.4Supplier3 2.5Substitutes3 3.Macro–
environmentError! Bookmark not defined. 3.1Political3 3.2Economic3 3.3Social3 3.4Technology3 3.5Environment3 3.6Legal3 4.SWOT3
5.Reference3 1.Introduction TNT (Thomas Nationwide Transport) was founded by Ken Thomas in Australia in 1946. Today,
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2.8Social The survivability of TNT will depend on the economic growth of the industry and standard of living. When there is growth in the industry
there will be a need for delivery services because companies will need to deliver their stock from one place to another in order to sell. Another
positive is the rise in income level and the standard of living; people may move to bigger houses or invest in new ones. This would require the use of a
delivery service. If business is growing for one company, they may need to expand or to move to a bigger location, they will need transport to move
their inventory. Some small business may then decide to outsource the job to TNT. 2.9Technology With the help of technology, TNT allows customers
to track and trace their items through their website and short message system (SMS) and this would help ease the minds of customers. (http:/
/www.tnt.com/express/en_sg/site/home/shipping_tools.html). The advance system allows 24/7 service with the lowest manpower to work.
2.10Environment TNT delivers their freight using road and air transport. These kinds of transports are polluting the air and harming the environment.
TNT wants to reduce the environmental impact of its business; their aim is to improve their carbon efficiency by 45% by 2020. Another
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Fedex Strategic Analysis
Introduction:
Federal Express Corporation (FedEx) started its operation in March 1973 building a express delivery company to global logistics and supply chain
management company. With logistics as a key part of forming a strong strategy formulation FedEx provided their customers differentiating means thus
winning a healthy customer loyalty with enormous.
The growth of the express transportation and logistic industry was brought about by three main trends
В•The globalization of businesses.
В•Technological advancements and applications innovations.
В•The changing market demand for more value added service..
В•Application of new technology to generate process efficiencies, and changing market demand for more value– added services.
В• ... Show more content on Helpwriting.net ...
Now with more geographic regions to cover FedEx had to encounter more competitors now. Some of the company's which were posing as threats to
FedEx are as follows:
UPS:
United Parcel Service (UPS) was founded in 1997 to disseminate its logistics software to EC users. In early 1998, UPS formed a strategic alliance
with open market a US based provider of internet software, to deliver a complete Internet commerce solution providing integrated logistics and
fulfillment. .It was also working with IBM and LOTUS to standardize formats on its website. In 1999 UPS raised $5.47 billion through its initial
public offerings,(IPO)The company shipped 55% of goods ordered over the Internet.
DHL
In 1993 DHL announced a four year, $1.25 billion worldwide capital spending program aimed at investing in handling systems automation facilities
and computer technology. Though the company dominated the UK market it projected an increase in worldwide revenues of 18%, to $5.26 billion. It
was 25% owned by Deutsche Post 25% owned by Lufthansa.
TNT:
TNT launched the worlds first global price checker service on its website that allowed customers to calculate the price of sending a consignment from
one place to another to anywhere in the world. Other applications were under development that would allow customers to integrate with TNT's online
service. TNT launched the express industry's first dedicated customer extra–net,
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Fedex Express : Fedex Freight Services
Introduction
FedEx is a worldwide shipping and solutions corporation that provides services for: Time–sensitive deliveries to all of the U.S. states and territories,
logistics solutions and business support services. FedEx operates through four divisions: FedEx Ground, FedEx Freight, FedEx Services, and FedEx
Express. FedEx Ground provides services in the U.S and Canada. The service offers Saturday delivery with no additional charges. FedEx Freight
provides time–sensitive truckloads. Services extend through the U.S, Canada, Mexico, Puerto Rico, and the Virgin Islands. FedEx Services offers
solutions for global supply chains, data management services, and e–commerce to its customers. FedEx Express was the first service offered by the
company. It included the shipments of time–sensitive and air–ground express services. FedEx is one of the worlds leading transportation businesses
delivering small parcels throughout the U.S and to 220 countries internationally. Company History
Frederick W. Smith, creator of Federal Express came up with the idea while writing a term for a class he was attending at Yale. His term paper
revolved around the fact that mail takes an extended amount of time to reach its recipient. He wanted to develop a delivery system that would be able
to deliver time–sensitive packages overnight.
The company was later developed when he purchased a controlling stake in Arkansas Aviation Sales after his service in the Marine Corps. Frederick
Smith's
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Airborne Case Study
Harvard Business School
Airborne Express Case Study
Q1. How and why has the express mail industry structure evolved in recent years? How have the changes affected small competitors?
The Express mail industry in the United States had a volume of $16–17 billion on expedited shipments in the year 1996. In the years before shipment
volumes has risen 15–20% per year. However due to higher competition prices have fallen which resulted in a rise of only 10–15% in total revenues. As
an example of this stands the revenue and the operating margin of the biggest player that make up 45% of the market. Federal Express' revenue has
more than quadrupled in the ten years prior 1996, however its operating margin has more than halved. (Exhibit 2) The ... Show more content on
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DHL is also the specialist for services that include fast shipments to the far and hard to reach corners of the world, with hubs situated in Nairobi and
Bahrain. TNT's focus lies on international markets as well, however focuses its efforts on Europe. Another second tier player is BAX Global who
specialized in business–to–business heavy cargo. Earlier BAX Global was focused on the market for overnight letters, which resulted in large losses,
till the strategy was shifted towards heavy cargo. The company RPS does not offer overnight delivery but focuses on two–day delivery and a cheap
group network with a sophisticated information technology, targeting price–sensitive business customers.
Q2. How has Airborne survived, and recently prospered, in express mail industry?
In the fife years prior 1997 Airborne Express has grown faster than its two bigger rivals, giving it about 16% of domestic express mail market share
in 1997. Airborne has achieved this by a couple of measures that allowed it to keep its costs down and guaranteed Airborne Express success in its niche.
One of the key decisions of Airborne Express was to target regularly shipping business customers and purposely passing over residential deliveries
and infrequent shippers. Ray Berry, vice president of Field Services Administration, commented this selection of customers: " Since we can't be all
things to all people, we pick our kind of customer deliberately." And it
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Ups vs Fedex
Executive Summary
Based on our analysis regarding competitive advantage, company comparison, financial data and operational excellence, we believe UPS will be a
better performer in the long run as compared to FedEx.
Competitive Advantage
UPS has a first mover advantage over FedEx, beginning air delivery service in 1929. Although FedEx was the first to own and operate their own
planes and introduced the innovative "hub and spoke" distribution pattern, UPS leads in specialized transportation and logistics services. In 1975, UPS
promised package delivery to every address in the United States; FedEx was not able to guarantee delivery in every area. When deregulation of the
domestic airline industry and trucking industry occurred, the ... Show more content on Helpwriting.net ...
FedEx volumes in China grew by more than 50% between 2003 and 2004. UPS was active in China beginning in 1988, and was the first carrier to
offer nonstop service from America. By 2003, UPS had 6 weekly flights to China with direct service to Beijing and Shanghai, serving about 200 cities
with expected growth of about 60% on its main route. UPS also predicted peak–season demand to exceed capacity.
Financial Analysis
UPS appears to be the better bet for the long–term because its historical financial results are superior to and more consistent when compared to
FedEx. If we consider EVA (Economic Value Added) as the key gauge for evaluating both firms, UPS is clearly the better performer. In the twelve
year period of 1992 through 1993, UPS created $4.33 billion in cumulative economic value, while FedEx destroyed $2.25 billion.
Because of its superior profitability and cash generating capabilities, UPS has better prospects for funding growth through internal and external
sources. Even if we weaken the assumption of past history as a good indicator for the course of future financial performance and management, the data
still indicates UPS is in a better financial position for taking on future growth.
Decomposing EVA
UPS outperformed FedEx
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Airborne Express
Exhibit: Five Forces Outline
1. Barriers to Entry–Medium to High for the following reasons: a) Economies of scale–the top three carriers (Federal Express, UPS, and Airborne
Express) serve slightly more than 85% of the domestic express mail market. All three carriers deliver a high volume of packages, and thus, are able to
spread fixed costs over more units. Also, each carrier has integrated technological systems that improved operational efficiency. In addition, intensive
training programs of employees increase service and delivery efficiency. b) Extremely large capital requirements are necessary to enter the market. Hub
facilities at airports (e.g. FedEx's hub near Dallas cost $250 million); capital expenditures for ... Show more content on Helpwriting.net ...
However, such avenues of delivery limit the customer's presentation options (cannot bind business reports / "deliverables"). Also, the customer cannot
transport a non–paper package (e.g. a book, a desk) via this delivery system. b) Regular mail only cost 32 cents for letters. The post office is also very
convenient. However, in regards to packages, the post office is very poor in quality service and efficiency (cannot track packages efficiently and has
an on–time delivery record much worse than commercial carriers) 3. Bargaining Power of Suppliers–Medium for the following reasons: a) Postal
materials–numerous suppliers of necessary postal and packaging materials. Switching costs are not high. The postal materials suppliers have low
bargaining power. b) Software programs combined with extensive customized programming updates / additions. The software and software
customization industries both have numerous suppliers. However, given the complexity and uniqueness of such an information network, there are
probably only a limited number of software and customization companies that can provide a carrier with a high quality system that is capable of
smoothly integrating all the operation and customer service divisions. Furthermore, the switching costs have the potential to be extremely high because
such a transfer could disrupt communication between the divisions, leading to poor quality service. In addition, the company would
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Airborne Express : Case Study
1.How and why has the express mail industry structure evolved in recent years? How have the changes affected small competitors?
The US express mail industry is highly consolidated. 85% of the market is served by 3 service providers. There are six second tier players who serve
the remaining 15%. FedEx and UPS lead the industry in services and innovation. The following trends have been observed in this Industry.
Services: A host of services are provided to suit the needs to different businesses. Overnight shipping and next–morning delivery are most popular
amongst other services like next–afternoon delivery and second day service. Same–day and early–next morning services are even costlier. Shipment
volumes have risen over the decade ... Show more content on Helpwriting.net ...
As such there is no brand loyalty, however all the major players are know for their reliability and for a new entrant to establish the same will take a
lot of time. There won't be any cost advantage factor as the hub–and–spoke model, used in this industry, can be implemented by new entrants.
Economies of scale will not be in favor of the new competitor as the initial volume would be low. Switching costs are not high in this industry.
Rivalry among established companies: This industry is highly consolidated with only 3 major players – somewhat an oligopoly. The industry is also
characterized by numerous price wars between the 2 giants, namely, UPS and FedEx. Rest of the companies generally follow the trends set by these
two firms or fall out. The exit barriers to this industry are high. This is due to the investments in hubs, vans, jets and other capital extensive
infrastructure.
Bargaining power of buyers: Businesses and individuals all fall under the customer's category for this industry. Big customers do get volume discounts
and can negotiate prices with sales representatives. However smaller customers have to take what is being offered to them. The only say they have is
that they can switch between the players, but due to intense competition, the prices offered are generally the same across the service band.
Bargaining power of suppliers: The inputs to this industry are fuel, planes, vans, customs & permits etc. the companies do liaison
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Airborne Case
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Airborne Express Case 1. How has Airborne survived, and recently prospered in its industry? Please address why you think it was difficult for bigger
competitors such as FedEx to imitate Airborne's strategy. Although Airborne does not get the publicity thatFedEx and UPS get, they have managed to
remain the third largest player in the express mail industry. One unique aspect that has helped Airborne maintain a leading position in the industry is
their ownership of an airport, which serves as their major hub. This is a huge advantage because they have complete control over the timing of each
shipment and what comes in and out of the airport. Airborne also purchases and modifies used ... Show more content on Helpwriting.net ...
With approximately 21,000 employees, compared to FedEx's 129,000 and UPS's 336,000, Airborne had to use unique business decisions to master
movement, balance, and leverage within the express mail industry. The first technique suggested by Yoffie and Kwak to master movement was
referred to as the "puppy dog ploy". They believed small companies should "keep a low profile and avoid head–to–head battles that they're too weak to
win." (Yoffie&Kwak, 3) Airborne succeeded in mastering this technique through direct marketing. They targeted large clients directly, which
allowed them to keep a low profile while building a strong position. Airborne's actions also related to Yoffie and Kwak's technique number 2: define
the competitive space. Airborne recognized that FedEx and UPS held a solid ground in the industry, so they decided to focus on large–volume business
customers. While still competing in the same express mail industry, Airborne found their own space in the market. In order to maintain balance,
Airborne's made decisions that align Yoffie and Kwak's technique
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Express Opportunity in China
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,... Show more content on Helpwriting.net ...
However, despite the investment enthusiasm surrounding exponential growth rates, there are still huge challenges in doing business in China:
Overregulation, fragmentation, a weak transport network, and congestion are holding back the industry. There are many risks for western companies
attempting to China Express Delivery Market (2004–2008) in USD Billions and Major Drivers of Growth Foreign Trade Foreign Trade пЂґ 2001–06
CAGR +30% пЂґ Import/export volume exceeding $1400 bn p.a. International Express Domestic Express Domestic Domestic Economic Economic
Development Development пЂґ 8–10% GDP growth in recent years пЂґ Expect 10% average growth of air cargo traffic next 20 years (Boeing) +28%
4,4 7,4 5,8 2,6 2,8 0,9 3,5 1,1 1,4 3,1 2006 1,9 3,8 2007E Foreign Direct Foreign Direct Investment Investment пЂґ FDI exceeding $60 bn p.a. пЂґ
Outward FDI by Chinese Enterprises over $7 bn in 2006, growing at 26% 4,8 1,9 2004 2,5 2005 2008E Market Market Opening and Opening and
State Support State Support Source: Market Research, Booz Allen Hamilton Estimate пЂґ WTO agreements пЂґ Closer Economic Partnership
Arrangement (CEPA) When China joined the World Trade Organization (WTO), the country experienced a rapid market liberalization and
modernization as well as rising domestic consumption. As a result, the Chinese express market continues to offer huge growth prospects for
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Current Market Conditions of FedEx
Project Overview пїЅ PAGE * MERGEFORMAT п
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Current Market Conditions – FedEx
March 1, 2010
University of Phoenix
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Current Market Conditions – FedEx
INTRODUCTION
The purpose of this paper is to review the current market conditions for FedEx. Like many organizations, FedEx is faced with different market
conditions on a regular basis. Team A has reviewed some of the market conditions and addresses which ones will or will not change. The research that
Team A compiled together are conditions such as market structure, impact of new companies, pricing, technology, productivity, price elasticity,
competitors, and several more. After reviewing the market conditions, Team A will show how FedEx has managed to continue growing in today's...
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–Offering shipping for improved customer service and convenience via fedex.com
–Pioneering the use of wireless technology for shipping over 25 years ago with the introduction of the Digital Assisted Dispatch System (DADS).
PRODUCTIVITY
It is clear that FedEx wants to stay ahead of competitors such as UPS, USPS, and DHL. In today's market it is about having the best people, the best
technology, and having the strongest customer service attitude. With these three key elements's FedEx will continue to grow the business in the now,
but more importantly is strengthen the future business. FedEx has identified the importance of employee relationship, which in the short and long run
improves overall customer service. If the employees are happy with FedEx than overall productivity will increase.
"The Employee Loyalty Index (ELI) at FedEx Express complements i4cp's core focus of leveraging human capital as a driver for increased market
performance. The ELI is a tool that gauges multiple indicators of employee loyalty – and other critical factors that drive this commitment– on an
ongoing basis. The information is then used to develop proactive processes and forward–thinking initiatives. The index is not designed to simply
measure loyalty for loyalties sake, but to act on the premise that loyal employees help to build customer loyalty, and, in turn, greater profits." (Retrieved
3–1–2010)
COST STRUCTURE
The cost structure of
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Taking a Look at the FedEx Corporation
FedEx Corporation provides customers and businesses worldwide with a broad portfolio of transportation, business services and e–commerce. FedEx
was founded in August, 1971. It started to operate on 17 April, 1973 with the launch of 14 small aircrafts from Memphis International Airport. Federal
Express officially adopted "FedEx" as its primary brand in 1994.
In the late 1980s, FedEx expanded internationally. In 1988, they bought 3 Japanese freight carriers and Italy's SAMIMA. While in 1989, they bought
Tiger International. That year it doubled their overseas sales to become the top air cargo company. FedEx struck a deal to transport mail shipments
with the United States Postal Service and FedEx drop boxes were placed in post offices in 2001.
FedEx bought ANC Holdings (UK–based express transportation company) and re–branded it as FedEx UK, for about $240 million in 2006, gaining a
network of 80 offices and 2,200 fleet vehicles.
Today, FedEx serves over 220 countries with an average daily volume of 7.5 million shipments. It has more than 275,000 people worldwide. FedEx
Corp today ranked number one in Express Delivery industry for customer satisfaction.
Company Profile
FedEx has three levels of executive positions in HR Management. The first level is Board of Directors; they in charge of information technology
omission and supervise all the operations broadly, control and nominating, compensation and audit and so on. The second level is Executive President
and Chief Executive
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Dhl’s American Adventure
DHL's American Adventure 1. DHL used several strategies for entering market of the United States, they can be divded into corporate level
,business level and operational level strategies. For the corporate level strategies, Globalization Strategies are adopted, DHL invests $1.2 billion in
entering the U.S. market. DHL is the largest express carrier in Europe with a 40% share, and the largest international express carrier in Asia, also
with 40%. There is a global economy now, all businesses involved in foreign trade, world trade has to be transported, and DHL thinks that they have
to be everywhere for providing the transport. If DHL did not enter in the U.S. with a completed network, it would be very difficult for them to hold...
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DHL has a better situated in terms of air transport after completing the integration of Airborne Inc.. DHL is a company that capable to change,
innovate, be flexible, adapt and learn. DHL changes its focus to U.S. customers who want to cut costs by sending parcels overland rather than by
air, it is a case of changing itself to adapt the U.S. trend. Learning to employ and train staff as Starbucks can show its capability of learning.
Moreover, DHL provide personalized service to customer and it becomes one of its most important competitive advantages. Focused
Differentiation is used by DHL to provide high perceived service benefits to selected market segment. It can be explained by the case of Skechers
USA Inc., "UPS and FedEx are more reluctant to go to remote locations. DHL will just do it. If their driver has to sit in the parking lot and fill out
the air bills, he'll do it." says Michael Cardenas, Skechers'office services manager. All of the competitive advantages of DHL are best suited to aa
mature industry. In this mature industry, it is under Hypercompetitive conditions. As to sustain competitive advantages, organization have to focus on
ability to change, speed, flexibility, innovation and disruption of market. DHL is an expert in express carrier, and all above–mentioned competitive
advantages of DHL are suitable in this mature industry with hypercompetition. There are some weaknesses of DHL
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Diversity Action Plan
Diversity Action Plan University of Phoenix SOC315: Cultural Diversity Dr. Abbas Khajeaian October 21, 2007 Introduction The purpose of this
paper is to describe a selected organization or workgroup that has grown in population and diversity and to develop an action plan that has accurate
information best describing the trends in population growth and diversity within this organization. The organization selected for this diversity action
plan is Federal Express. Diversity Action Plan Organizations in every size are realizing the value of creating a plan to increase and manage diversity
within their companies. The steps in developing this plan can include; assessing needs,... Show more content on Helpwriting.net ...
For this strategy to be successful, everyone in the organization must be represented. Evaluation Evaluation is key to any diversity initiative. Indicators
of success may include changes to the employee profile, recruitment and retention patterns, numbers of employees accessing training or other optional
program components and employee feedback on diversity programs. Tools for monitoring and evaluating program success may include: progress
reports reports from a diversity task force or diversity committee feedback from staff interviews or surveys interviews with management and
consultants analysis of key data such as numbers of employees accessing training or other optional program components Federal Express
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A Business Project On Dhl Essay
DHL was established in 1969 by Adrian Dalsey, Larry Hillblom and Robert Lynn. The three partners were delivering shipping services, transporting
documents by air only between Francisco, California, Hollywood and Hawaii so the goods can pass though customers with less delay noting that it
was the only shipping company in the middle East. In 1982, Fadi Ghandour established Aramex in Amman, Jordan. Ghandour was born in 1959 to a
Lebanese Muslim family. His father is Ali Ghandour, who was the chairman of the Jordian national airline. Fadi was graduated from George
Washington University with a BA in political science. After graduating from college, Fadi was aiming to go through a business project in the Middle
East. He felt that the Middle East needed someone to fill a niche in the international courier delivery business. Therefore, he met with William
Kingson, Aramex has been founded which has developed to be nowadays a giant. Aramex started operations in Amman as a global provider of
logistics and transportation solutions. As hierarchical division of Aramex, the chief sustainability and compliance officer of Aramex was Raji Hattar.
As for Reem Khoury, she was the manager of CEO operations. The former chief operating officer was handled by Osama Fattakeh.
Hereunder is how Aramex has developed briefly through the years:
In 1982Aramex was established in Amman, Jordan
In 1987Aramex was used by FedEx, Airborne Express and other large companies in the US. In this year, the
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United Postal Service Mission Statement
The United Postal Service Company was established in 1907 in Seattle, Washington. The company provides ground and express delivery services to
more than 200 countries, offering fast, reliable and convenient service to approximately 10 million customers worldwide. UPS is one of the largest
package delivery company worldwide. The company's main competitors are FedEx, DHL and USPS. Today, UPS regulates more than 26,000 access
point locations, 2000 operating facilities worldwide with over 100 million daily online tracking (UPS tracking) and approximately 5 billion delivery
volume in 2016. The United Postal Service has come a long way since inception and has gained tremendous success over the decades and continues to
strive to remain the dominant ... Show more content on Helpwriting.net ...
The United Postal Service needs to adjusts these expenses to the market standing and corporate mission, which will reflect their service value as
opposed to their competitors' offer values. Furthermore, there are more essential components that create the company's attitude to the assessing course
of action, which includes; planning what comparable stature services the market will pay for, advocating its prominence, increasing its profits with
assurance that it can meet its revenue and other goals (Woodward and Clark, 2016). Through these techniques, the company will be in a position to
deliver high quality service at a reasonable cost. The two main factors that will guarantee profitability and achieve the company's objectives are the
support the company's image and benefits growth and development. Therefore, with these two factors established, there will be a positive outcome to
the pricing
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The Fedex And Its Impact On The United States Of America...
INTRODUCTION
FedEx can be seen everywhere.
Federal Express is known as FedEx. It is an express transportation company which was founded by Fredrick Wallace Smith in the early 70's.
FedEx is headquartered in Memphis, Tennessee, United States of America.
Amidst Smith's college days, he began to descry that the United States was conforming itself to become a service aligning economy.
It was longing for a candid overnight service driven company, which would be designed to conveyor packages and essential documents.
While giving his Mid–Term papers at the Yale University, he mentioned this idea.
It was completely shunned by his professors, thinking that it would never take shape. But by happy chance, he did not pay heed to such criticism and
slogged towards achieving his dream.
He was able to find investors who were willing to invest an amount close to 40 million dollars. His friends and family supported him immensely. He
was able to arrange for banking financing too. And by this he was able to start FedEx with 80 million dollars, being the largest company in his era to
have been able to raise itself by such a prodigious venture capital.
BACKGROUND
FedEx was roaring high and was killing all its competition by making them weaker with time.
FedEx constructed a super–station at the Memphis, Tennessee.
FedEx planned that it would load all the packages from the United States and would transport and ship it out every night.
At present, FedEx has more than 150,000 workers
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Fedex Case Study Essay
1. From the point of view of the industry incumbents, is the express mail industry attractive? How has Airborne survived, and recently prospered, in its
industry? Is its success attributable to its capabilities, its position, or industry attractiveness?
The express mail industry can easily be considered an inherently tough industry to operate within given the myriad of factors that come into play, such
as unions, government regulations, cost of technological advancement, and international borders to name a few. Despite this, the industry could be
seen as offering opportunities, which could be seized by attracting customers based on the quality of the service being offered. Consequently, this also
encouraged mimicking between ... Show more content on Helpwriting.net ...
Conversely, they could be shipped to hubs (which passengers did not do like today) where they would be sorted during the night and then sent onwards
to their final destination from there thus offering overnight services.
Fred also benefitted from being a first mover in the express mail industry. UPS that had been offering delivery services since the beginning of the 20th
century. However, they had only relied on their ground network and did not establish their own fleet of aircraft until the early 80's, after RPS had
shook their existence and after seeing how fast Fedex's business was growing. Being a first mover enabled Fred to start small and grow the business
in line with demand. Fedex did not have to catch up to an industry incumbent since he was the one inventing the express mail airfreight business. If
not, it would have called for a much greater investment and made it more difficult for him to penetrate an existing market. UPS on the other hand was
able to enter the market since they were an established company with means to invest heavily in this new service. It is also likely that by being an
early entrant, it also made it somewhat easier for UPS to start their own fleet than it would be for anybody to make that same attempt today, not
omitting the fact that they had great experience in delivery services at that point as well.
3. Quantify Airborne's sources of competitive advantage.
a) First, explain in detail the cost position
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Courier Pak
1. Evaluate the value proposition offered by the Courier Pak The product in question is a freight product that covers shipment of documents or other
items up to a weight of 2 pounds and offered overnight delivery of the documents. Another value proposition of this product is the added safety feature
of it being shipped in waterproof or tear–proof envelopes ensuring the documents are shipped without the possibility of damage. The targeted segment
for this product is the Rush segment customers who are not too price sensitive and expect delivery of the consignment on the following day. Typically
the order for a consignment is placed by either the executive or his secretary that desires the shipment. In this segment, Federal... Show more content on
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4. Fixed Costs: This is an industry with high fixed costs (hub operations and airplanes) and these costs have already been incurred by Federal
Express. To establish economies of scale it is sensible to continue offering a profitable product such as Courier Pak. 5. Reputation: This is a
segment that relies on the providers' ability to stick to delivery schedules with reliability. If Federal Express were to exit this segment it could send
a negative signal to the clients of their other time sensitive products such as Priority One indicating an inability on the part of Federal Express to
deliver on time. That being said, Federal Express is faced with an uphill task in growing its market share. The target segment in this case is
corporates and it is very difficult to get corporates to change buying patterns. It is faced with stiff competition from incumbent Emery Air which
currently has the highest recall and also seen as a reliable freight service provider. Additionally, it is trying to market a product that is fairly
standardized and does not have many distinguishing features. The best way to expand sales for such a product is by improving the perceived value
through innovations and higher visibility. In my opinion, Federal Express would benefit from adding features that indicate reliability such as the
tracking features offered by
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Analysis of Strategic Position
ANALYSIS OF STRATEGIC POSITION
Deutsche Post World Net has a unique spectrum of international services including brands DHL, Deutsche Post and Postbank with different types of
services. Thus, we have decided to focus on DHL in this analysis in order to better understand to strategic position within logistic services.
PESTEL ANALYSIS:
Legal: в–Є Deregulation and liberalisation of the airline industry в–Є Environmental regulations and protection
Political: в–Є Liberalisation of international trade в–Є International trade regulations and restrictions в–Є EU expansion(needs for infrastructure and
information technologies)
Economic factor в–Є Economic integration в–Є Globalisation Economic growth в–Є Stage ... Show more content on Helpwriting.net ...
Market positioning
[pic]
Market position of DHL as well as its major competitor is in broad market with differentiated services.
Source: http://group.tnt.com/investorrelations/sectorstatistics/marketstatistics/index.asp
The biggest part of DHL 's businesses run in intracontinental and intra–Europe. DHL gain good position also in Pacific Asia, where has around 40 per
cent of logistic market. DHL has only 7 per cent in US and where face to competition with major competitors FedEx, UPS and on this market also US
Postal Service. DHL lost their customers during the complex air and hub consolidation investing millions of dollar in this market and this market will
be not profitable until 2009.
Business model
Recommendation
To be on Asia market– has the biggest growth potential...
References:
(2006), Market Segmentation, Targeting, and positioning[online], Avaliable at: , >, [Accessed 25th November 2006].
Boyd, J. D.(2006), DHL parent DPWN Restructures, Traffic World 10/2/2006, Vol. 270 Issue 40, p36
Logistic Today (2006), DHL, FedEx, UPS Expansion of Service To and In China [online], Available at:
, [Accessed 25th November 2006].
2006, DHL 's American Adventure[online], Availible at:
, [Accessed 25th November 2006].
Porter's 5 forces
Competitive rivalry:
In Deutsche Post World Net annual report 2005 is written "Globally, Deutsche Post World Net has a comprehensive range
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Fedex Corp. vs United Parcel Service, Inc Case Study
I. Executive Summary
In this report we focus on the two main competitors in the package delivery industry: Federal Express Corporation (FedEx) and United Parcel Service
of America, Inc.
Studying FedEx, UPS and their competitive relationship in the decade from mid – 80's to mid – 90's gives a good insight for the companies' and
industry's future. The two companies have different strategic goals and are operating in the same industry but in different main markets: FedEx is
working on "producing outstanding financial returns" and focuses on the overnight air market while UPS is looking for "earning reasonable profit"
and its core business is the two–day ground delivery. However, by 1981, the two companies started to have a strong sense... Show more content on
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In addition to that, FedEx came up with new services such as Saturday deliveries, delivery by 10:30 A.M., customer interfaces (drop boxes, drive
through stations and express delivery stores) and same day pickup of order. This is to distinguish its services. More on that, FedEx's philosophy of
"People–Service–Profit" was successful in insuring a union free workforce devoted to customer focus. In 1978, deregulation in transportation helped
FedEx to acquire larger planes therefore achieve lower cost. Trade deregulation in Asia–Pacific enabled FedEx to expand further. The acquisition of
Gelco express, Tiger International, and establishment of Airport Hub in Brussels expanded FedEx internationally. Inflation and rising global
competitiveness generated the need for "just–in–time" supply model, which was the advantage supported by FedEx advanced technologies.
Some inhibiting factors were the competition that has heavily evolved as a number of competitors (e.g. Emery, USPS, and UPS) entered the
overnight delivery market as well as imitate other FedEx new services. More on that, they were able to acquire similar IT solutions with lower costs
and as a result presented these services with cheaper prices. Moreover, in the attempt to expand internationally, some acquisitions were over–priced and
revealed insufficient market studying. Europe low demand that resulted in the shutting down of Brussels hub as well as Tiger international operations
caused a loss of $1 billion
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Mission Statement For Fedex
Introduction
FedEx is a worldwide shipping and solutions corporation that provides services for: Time–sensitive delivers to all of the U.S., logistics solution and
business support services. FedEx operates through four divisions: FedEx Ground, FedEx Freight, FedEx Services, and FedEx Express.. FedEx Ground
provides services in the U.S and Canada. The service offers Saturday delivery with no additional charges. FedEx Freight provides time–sensitive
truckloads or less. Services extend through the U.S, Canada, Mexico, Puerto Rico, and the Virgin Islands. FedEx Services offers solutions for global
supply chains, data management services, and e–commerce to its customers. FedEx Express was the first service offered by the company. It included ...
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when customers use two services
Mission & Goals
FedEx's mission statement is to produce superior financial returns for its shareowners by providing high value–added logistics, transportation and
related business services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each
market segment served. FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the
first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards.
Their long term goals stated from their website include:
Achieve 10% operating margin
Grow profitable revenue
Improve case flows
Increases return to share holders
FedEx plans to achieve those goals by:
Grow their core packaging business
Expand internationally
Increase supply chain capabilities
Improve e–commerce and technology
Add new services
By 2030 FedEx plans to increase growth in key countries.
China 4%, 50 million
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Mccarran Airport Essay
McCarran International Airport (LAS) is the main commercial airport for the Las Vegas Valley and Clark County, Nevada. It is roughly 5 miles
south of Las Vegas, NV in Clark County. LAS covers nearly 2,800 acres, with four runways and two terminals. LAS is owned by Clark County and
operated by the Clark County Department of Aviation (DOA) (AirportIQ, 2015). The airport is named after former Nevada senator Pat McCarran
(Hall–Patton, 2010). LAS is a focus city and the largest operating base for Allegiant Air andSouthwest Airlines.
Section 1
Airport History 1942 – George Crockett, descendant of frontiersman Davy Crockett, established Alamo Airport, currently occupied by McCarran
International 1948 – Clark County purchased the airfield and named it McCarran Field for U.S. Senator Pat McCarran. 1978 – Deregulation spurred a
plan called McCarran 2000 which funded $300 million to construct new terminals, parking facilities, runway additions and expansions, additional gates,
upgraded passenger assistance facilities and new roadways. 1987 – McCarran International completed construction on McCarran 2000
1990s – Gates and check in counters upgraded to use a common set of computer hardware. CUTE, Common Use Terminal Equipment. This eliminated
the need for each airline to have their own equipment and allowed LAS to reassign ... Show more content on Helpwriting.net ...
Commercial service airports accommodate scheduled air carrier service, provided by the world's certificated air carriers. Commercial service airports
operate under unique regulations enforced by the FAA and Transportation Security Administration (TSA), as well as state and local governments. In
addition, other federal and local administrations, such as the Environmental Protection Agency (EPA), and local economic development organizations,
indirectly affect how commercial service airports operate (Wells, Young,
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Swot Analysis Of Fedex
FedEx is one of the most well–known and successful businesses in the shipping industry. The structure of this organization has enabled it to become a
major competitor in its field. Examination of the structure and internal workings of this multifaceted association demonstrates that it has been
streamlined and set up such that has augmented its proficiency in the market. FedEx has made an organization that has fiscally been very effective. In
any event, this does not infer that it doesn 't have space to develop and enhance from its present standing. The joining of new, developing patterns in
innovation and online networking business activities could make the way toward overseeing and dispatching less demanding for the organization....
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The two firms are in a steady fight to keep up piece of the overall industry in their separate specialized topics while turning into a bigger player in
the other 's field. Both firms spend intensely on publicizing and frequently coordinate each other with regards to fuel extra charges, builds/diminishes
in estimating, and even acquisitions (UPS obtained Mailboxes Etc.; FedEx stuck to this same pattern with its buy of Kinko 's). With regards to the
worldwide transportation advertise, DHL is thought to be the pioneer. FedEx, be that as it may, profit significantly when DHL exited the US
expedited service advertise a couple of years back. The company is trying to compete with DHL by obtaining companies that are already reputable in
various international markets and investing heavily in infrastructure (planes, trucks, routes, and hubs) in those locales. The threat of new entrants
realistically competing with FedEx is very low and "this is due in large part to the huge costs associated with entering the delivery market on a wide
scale" (strategic report). The investment that would be needed to obtain the appropriate "levels of planes and vehicles combined with building up the
necessary infrastructure is mind boggling" (strategic report). Besides, it is essential to address the barrier that another firm would confront as the
Federal Aviation administration and air routes/landing rights. The
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Advertisements For The Deutsche Post Dhl Logistics Services
Both Figures 1 and 2 are advertisements for the Deutsche Post DHL logistics company that provides domestic and international delivery services.
However, Figure 1 is more specifically designed for DHL Express, a division of DHL that provides express delivery services. The purpose of both
advertisements is to promote the quality and efficiency of the DHL logistics services. Figure 1 is precisely targeted at customers who require
time–critical delivery services, whereas Figure 2 is targeted at anyone who demands logistics services in general. Both advertisements are in the form
of print media with minimal use of language. Similar techniques including the use of slogans and colour are employed in both advertisements to
convey their message effectively. Both advertisements are targeted at individuals and businesses that require delivery services. Figure 1 is
particularly aimed at potential customers who need priority express delivery services such as time and day definite services. This is conveyed through
the logo, "DHL Express", which identifies the specific segment of the company. On the other hand, the target audience for Figure 2 is generally any
potential individual or business with occasional or regular delivery needs. This advertisement focuses on promoting DHL's prime quality of
time–efficient delivery using a short and clear–cut slogan, "Always first." Although the logo for Figure 1 is slightly different from the second one, both
advertisements use logos and slogans
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Airborne Express: Harvard Business School case.
Q1) What is the industry attractiveness like in 1997? Has it changed in recent years?
Q2) Does Airborne Express have a competitive advantage? Is it sustainable?
Q3) What recommendations will you give Airborne Express?
–––––––––––––––ESSAY START––––––––––––––––––
Industry Attractiveness in 1997
The industry is defined as the Domestic US Express Mail industry. This includes overnight and second day delivery. In order to assess the
attractiveness of the industry, a Porters' Five Forces analysis has been conducted as follows.
Rivalry
The industry consists of three major players and six second–tier players. There is intense competition between the players as shown by the price wars
between UPS and Federal Express. Although the market is ... Show more content on Helpwriting.net ...
However, the power of employees has grown considerably since the early 1990s. Even though UPS was a manager owned private firm, the
employees went on strike in 1997 and successfully obtained wage rises and other benefits. Federal Express handed out $20 Million worth of bonuses
at the same time to thank their employees as well as make sure that they did not consider similar actions. This shows that employee power has increased
in recent times leading to lower industry attractiveness.
Customers
Since the early 1990s, the players in the market have copied each other's innovations and this has led to very little differentiation of products in the
market. Customers in this industry are very price sensitive and little differentiation allows them to shop around for the best deal. In businesses, there
was also a trend towards contracts with multiple suppliers and this further increased customer power. These factors combined have led to lower
industry attractiveness since 1990.
Substitutes
In 1990, email was not a viable substitute as it was still a part of the research network and not commercially available. The only substitute was standard
mail and facsimile. Therefore, in recent years, attractiveness has lowered due to the introduction of another substitute.
New Entrants
It would be more difficult for a new entrant to enter in 1997 than it would have been in 1990 as the current incumbents have had 5–7 more years of
benefit
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My Experience In My Life
Life. Have you ever mistaken a test a life or death situation? I have in 6th grade. I thought I'd do horrific in a science test, but who knew it would
make me feel successful. It was the year 2015. Little 8 year old me would be amazed. After watching the movie 2012, I was wondering why hasn't
the world ended since 2012 went by. Now that it's 2015, I wish that was true. It was 1st period science class. The sun had not yet raised up and high in
the wonderful black and cloudy sky. All around me I could hear classmates bickering and yelling. I mean, that's what kids do. I see people hanging
out with their friends; I also see boyfriend and girlfriend hugging. The bell had rung like it was a siren for a war call, super loud. All the kids jolted to
their seats; the teacher strolled in.
"We will have test coming on (don't remember the day, I was 11 and who pays attention to small details)" said Mrs.(I don't remember her name either.
I never did like that teacher, unlike this one English teacher I have called Mrs.Smags). Test day was coming and I could see it flying through the light
blue sky with beautiful light feathery wings. On that test it was written, NAME. I was so nervous; I thought I would even get that question wrong. You
see the problems with test, not the literal test, is that I could never ever be perfect at them. I am a human, a flawed human. As shakespeare once told,
"Be not afraid of greatness: some are born great, some achieve greatness, and some have greatness
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Airborne Express and Husky Injection Essay
Airborne Express and Husky Injection Molding Systems
Airborne Express
1. Perform a five–forces analysis of Airborne Express' industry. Forces| Items| Power| Rivalry| * Big competitors are FedEx and UPS; * Smaller
competitors like BAX Global, DHL, Worldwide Express, Emery Worldwide, RPS, TNT Express, Worldwide, and US Post Service| Keen competition
with big competitors as they account for the lion's share of the market| Entry barriers| * Economy of scale * CAPEX on IT, facilities, aircrafts and
airports, trucks, * Brand loyalty, licensing, customer networks| High entry barrier to the industry because of large economy of scale, high CAPEX, and
dominating market shares of big players| Substitutes| * Emails ... Show more content on Helpwriting.net ...
Unlike FedEx and UPS, Airborne owned the airport that served as its major hub, so it did not pay landing fees nor face any obstacles to tailoring
facilities to its needs. It also built a warehouse in the airport and leased it to business customers, so as to increase delivery speed. Moreover, the
airport's status as a Community Reinvestment Act one led to reduced property taxes.
Airborne relied less on automation and more on humans, in particular part–timers that were paid relatively low. Its fleet also consisted primarily of
used aircraft to reduce CAPEX. It managed to maximize its payload, which was roughly 80% full, around 10% to 15% more higher than its competitors.
Airborne's customers were concentrated in major metropolitan areas. 80% to 85% of its volume was shipped among the top 50 metropolitan areas,
while it was below 60% for FedEx and UPS. It could also use trucks (one–third of transportation cost of aircraft) more often than its competitors as a
greater portion of Airborne's volume consisted of afternoon and second–day deliveries.
In terms of pickup and delivery, Airborne did not maintain retail service centres. It hired contractors to handle 60% to 65% of its volume, so it could
save cost by owning a lesser portion of delivery trucks. Its courier generally picked up and delivered more parcels per stop than FedEx, reducing labour
costs per unit by 20% and 10% for pickup and delivery respectively.
b. How much
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The Express Mail Industry
In the past there was no thing as overnight express delivery for packages or freight. Then the top 3 competitors in the delivery service industry that
held 85% of the market were Airborne Express (AE), United Parcel Service (UPS) and Federal Express (FedEx) and, the remaining market share was
among six second–tier companies. In the past few years, the express mail businesses had grown extremely fast due to the ability to provide and fulfill
overnight shipping accompanied by next–morning delivery services for both individuals and businesses customers. By 1996, this segment of the
expedited shipment delivery had grown to a $16–17 billion dollar industry business in the US alone. The evolution of the express mail industry had
become a quick on–time shipping and delivery of packages. The service had become effective, reliable, and prompt, which most of the top companies
could deliver on these guaranteed promises 96–99% of the time. But, delivery services were only a portion of the services being offered to their
customers. Carriers had mastered information management that they shared with their customers. Customers were now able to fill out labels, track the
route of their package, and assisted in billing using both via carrier provided software or the Internet. In addition there was an increase in the amount
of shipping requirements (increased by 20% in ten years). Logically, the industry grew in order to meet the increased customer demand. This also
increased the
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Airborne Express Harvard Business case Essay
______________________________________________________________________________
Executive Summary:
Airborne Express the current underdog in the express mail business has been able to compete with market leaders due to innovation and optimization
strategy. The company built on cutting cost and emphasizing reliability now faces pressure from the leaders UPS and FedEx to change their pricing
strategy. This change from standard rate pricing to distance–based pricing puts Airborne in a dilemma in which they must choose to match the
competition which will make them lose what sets them apart in the market or stay with the current strategy. Changing will increase their flexibility and
could open them up to new consumers while staying the same ... Show more content on Helpwriting.net ...
Such new moves by both "gorillas" like companies may sweep the corners of the market described by some industry analysts. For years, the industry
set the prices without consideration of distance, which means, a same sized letter from New York to New Jersey has the same cost as if the letter is
shipped to California from New York. In 1996, UPS officially moved to distance–based pricing, and Federal Express followed same action in 1997.
There is no denying that what actions Airborne take is significant affecting the development of the company, while facing this big change in industry.
Section 2: The problem/Opportunity: Airborne Express has long differentiated itself in the market by structuring itself as a big business only carrier.
They have specialized in large unit deliveries through metropolitan areas. Everything they do is aimed to optimize the delivery process and slash cost
where ever possible. However, Airborne is now faced with a huge decision. They must decide whether to step away from their differentiation strategy
to match the new pricing tactics of the market UPS and FedEx or to continue the old norm of delivery pricing. The new distance–based pricing strategy
threatens Airborne's consistent strategy to cut prices. Clients will seek to ship packages at the lowest cost. The short distance deliveries will be ruled
by UPS and FedEx since they are the once who are
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Fedex, An International Express Shipping Company
Page 1
Federal Express, or now known as FedEx, is an international express shipping company that ships anything from envelopes and small packages to
large freight. It was the brain child of college student Fredrick Smith, when in 1965 at Yale a professor assigned the class to invent an industry. At
that time the only option companies had was to utilized passenger routes to ship packages, which was not very efficient for time sensitive deliveries.
Six years later after Smith left the military he bought a small company and experienced how difficult it was to get supplies delivered within a couple
of days. Remembering the paper he had written in college, Smith founded Federal Express in 1973. Starting with 14 small planes today it has grown
into the world's largest al–cargo air fleet.
By 1980 FedEx was way ahead of the competition and the company was growing by 40 percent per year with 1 billion in revenue. Through many
international acquisitions and mergers they have grown internationally and now delivery to over 220 countries. As the demand for express freight
shipments increased so did the need to ship and receive documents overnight. The overnight letter service was introduced by FedEx in 1981 and is
now a part of standard business practices for most companies in America and the world. Many companies have multiple overnight deliveries and
pickups throughout the day. FedEx saw the future potential of overnight letter, package and freight deliveries and started to
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Airborne Case Study
Industry Analysis
In 1996, "Businesses and individuals spent $16–17 billion on expedited shipments within the United States" (1). Since then, shipment volumes have
only risen, at a rate of "15–20% per year for the past decade" (2). Companies in the industry provide an express delivery mail service; however,
services are not limited to physical delivery. In addition, companies provide tracking and warehousing services, as well as shipment–related logistics
consulting. The market is dominated by three main competitors: FedEx, UPS, and Airborne Express. Together, these three companies hold upwards of
85% of the market share. Using Porter's five–force analysis, we can identify the illicit reasons behind the relative attractiveness of the ... Show more
content on Helpwriting.net ...
Bargaining Power of Suppliers Labor unions are a unique source of supplier power to the express mail industry and have the power to generate
decreases in profitability. In 1997, an employee strike at UPS cost the company $700 million in lost revenue, a hurt reputation, and 15% increase in
full–time employee wages. Suppliers of raw components/materials (fuel, trucks, airplanes, etc) are large distribution companies or airline carriers.
There is a relatively powerless relationship between players in the express mail service industry and their suppliers. Neither side pulls too hard on the
other, but in some cases, the players can negotiate volume or exclusivity contracts with suppliers to receive discounts.
Intensity of Competitive Rivalry The express mail industry is not diverse. FedEx and UPS alone hold over 70% of the industry market share, leaving
the third primary competitor, Airborne Express, with roughly 15% of market share. The majority of the remaining market share belongs to theUnited
States Postal service. USPS, however, is not deemed a primary competitor because government regulations prohibit the company from offering
quantity–based deals, and the firm lacks proper package identification services. Between UPS, FedEx, and Airborne, though, rivalry is fierce. Because
all three of the primary competitors offer identical services, pricing drives competition. Customers, for the most part, are not loyal to an express
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Airborne Express Case Study 1
Executive summary
Airborne Express is the third largest and fastest growing international air express delivery company in America. It held roughly 16% of the domestic
express mail market by 1997. It provides time–sensitive delivery of documents, letters, small packages, and freight in the United States and
internationally. The company has several advantages over its rivals, such as it provides delivery services at a lower cost of up to 20% overFedEx 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 (not offered by the US Postal Service).
A general acceleration in the ... Show more content on Helpwriting.net ...
Competition: the US domestic express mail market is somewhat in an oligopoly status. The competition among the big three is quite fierce. Yet
normally FedEx and UPS lead the market. The six other second–tier players do not have any threats to the three major players.
The US Postal Service served much of the rest of the market. However, it has a limited popularity just among residential customers because it is
inefficient in package tracking and has a much worse on–time delivery record. It has a legal monopoly for first–class letters. But the company is
prohibited by law from offering volume discounts to customers.
DHL and TNT focus on the international market and trans–border shipments. DHL offer hard–to–reach service since it has hubs in many other
different places in the world. It has never invested heavily in domestic market. TNT focuses its effort on Europe.
BAX Global focuses on heavy cargo. RPS does not offer overnight delivery. It focused on two–day delivery via a ground network. It is known for its
efficient ground transportation and its sophisticated information technology.
The traditional express industry is threatened by facsimile and electronic mails, which have zero cost. Competition between FedEx and UPS has
caused a lower price and more innovations. The industry is quite consolidated and has a very high barrier to
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United Parcel Services Mission Statement
Organizational Setting– UNITED PARCEL SERVICE
Company Mission: The United States Parcel Services was founded in 1907. The company was created as an American Messenger Company. The
first responsibilities of employees of the UPS ran walked by foot or rode a bike in order to make deliveries. In 1913 UPS teamed up with a
competitor company and invested in their first delivery truck. While teaming up with their competitor, the decided to focus on delivering packages to
stores and changed their name of business to Merchants Parcel Delivery. The United States Parcel Service name was first used in 1925. (United Parcel
Service of America, 2018). In 2013 UPS released a mission statement, "What we seek to achieve: grow our global business by serving the logistics
needs of customers, offering excellence and value in all that we do. Maintain a financially strong company with broad employee ownership that
provides a long term competitive return to our share owners (United Parcel Service of America, 2018)." ... Show more content on Helpwriting.net ...
Popular services and products that UPS offers include printing, mailbox services, and packaging and shipping services. UPS is known to be the
world's largest package delivery business. UPS' intended customer market has reached world–wide and according to their mission statement, UPS
strives to see growth globally (United Parcel Service of America, 2018). UPS and Fed–EX are two top competitors in the packaging and delivering
industry. However, UPS has advantages over Fed–Ex due to the international delivery and supply chain group of UPS. UPS has done an excellent job
of making it nearly impossible for any new competitor to enter into the packaging and delivery industry. (United Parcel Service of America,
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Company Weaknesses And Resource Deficiencies
COMPANY WEAKNESSES AND RESOURCE DEFICIENCIES
Rising Prices: FedEx prices are higher as compared to their competitors which can be a potential weakness if their customers do not perceive a
difference between FedEx and its competitors.
Labor Disputes with Pilots: The FedEx Pilots Association is formed by the FedEx pilots. The motive of this global body was to bring about changes
in the pilots' salaries, retirement benefits and also restricting outsourcing of foreign flights. The pilots can share their views and feelings through a
website. There was a case in 1998 where the pilots were about to go on a strike which enabled FedEx and FedEx Pilots Association to develop an
agreement that was posted on the website. However, this agreement did not satisfy the expectations of the pilots and thus, this is an internal
weakness for Federal Express keeping in mind the fact that it has about 3500 employees in its kitty. FedEx would suffer and force other competitors to
take over if its pilots would go on strike and also incur heavy losses. There was a case in 1997 where the UPS employees went on strike forcing FedEx
to take an extra 800,000 shipments in a day.
Running Subsidiaries Separately: FedEx has made a conscious effort to keep their companies separate to allow a much more organized and structured
working environment.
In the 1998 annual report of FedEx, CEO Frederick Smith states, "Simply layering the unique resource and operating requirements of a time–definite,
global,
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Ups: Case Analysis
Current Situation The overall performance of United Parcel Service (UPS) during the past year was good. The company 's ROI for the last five
year is 14.27 while the industry average is only 12.70. UPS is the market share leader in the express delivery market with a 53% share of the
market, and 50% in the ground shipping industry (Lazich, 2007). Based on its Net Profit Margin, Return on Assets, and Earnings per Share the
company 's profitability is strong. Overall, UPS performed well in 2006. UPS 's current mission is a clear and succinct representation of their purpose
(See Appendix A). Their businesses include ground package delivery, overnight package delivery, freight forwarding, logistics, postal and business
services.... Show more content on Helpwriting.net ...
UPS has strong presence in Europe and is further expanding its facilities across this region. For instance, UPS opened a European air hub in 2006,
located at the Cologne/Bonn Airport, and has the capacity to sort 110,000 packages per hour. Also in October 2006, the company reached an
agreement with Poste Italiane to carry the Italian postal service 's international express shipments and started its operations in November 2006 for the
14,000 post offices. Poste Italiane operates across the country. In addition, UPS also plans to utilize the Poste Italiane network for its own pickup and
final delivery in certain extended areas of Italy. It could leverage its existing reach to benefit from the growth of the express and delivery markets in
Central and Southern Europe. Online shopping According to the US Commerce Department, online shopping rose by 20% in 2006, extending a
seven–year trend of double–digit growth. The US online retail sales are predicted to reach $130 billion by 2006, up from $34 billion in 2001. By 2008,
US online retail sales are forecasted to reach $271 billion. UPS is a leading facilitator of global e–commerce. The company provides a portfolio of
solutions that streamline the customer 's shipment processing and integrate transportation information into the retailer 's business applications. With
the expected growth rate of
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Five Forces Analysis-US Express Mail Industry Essay
Question 1 asked to complete a five forces analysis of the US Express Mail Industry. A five forces analysis is done to rate the attractiveness of an
industry.
Threat of new entry is low because the barriers to entry are high. Newcomers to the industry would require an enormous amount of up front capital to
set up the distribution networks and infrastructure, such as establishing hubs, and acquiring aircraft and a large amount of ground transportation
vehicles (vans, trucks, ect). Economies of scale are significant and would deter new firms from entering because initial sales volumes would be low do
to the fact that existing brands already have strong brand identification, and there are no cost advantages to entering, like government ... Show more
content on Helpwriting.net ...
The airports and the aircraft suppliers aren't only relying on the express mail industry, so that also gives those suppliers more power to charge what they
want (landing fees, cost of planes). Ground transportation vehicles is the only input that would allow for more bargaining power since there are
numerous alternatives available, there is more room for the industry players to negotiate price.
The availability of substitutes is medium mainly because there aren't a large number of substitutes out there for express mail outside of the
industry. Most next day deliveries are business documents, parcels, letters, ect, not typically cargo. So substitutes could include email and faxes,
both are faster and cheaper than express mailing. Depending on the nature of the business, video conferencing or the old fashion telephone could
be used. If the parcel is going somewhere local maybe could use bike messengers, or just hand deliver. There are also the second tier players, like RPS,
DHL and TNT, while they are still in the delivery industry; they tend to specialize in areas other than express mail. With RPS, it is second day service
at 40–50% less, and a business that does a large amount of overseas or international express shipments may want to substitute with DHL or TNT, who
specialize and differentiate themselves in the international market.
The Intensity of
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Fedex Analysis
Kim VanDeven
FedEx Corporation
Case Summary:
Federal Express is a delivery service company, founded by Frederick W. Smith in 1973.
While at Yale, he had a vision of an overnight delivery service designed to transport business packages globally. He found investors willing to
contribute $90 million dollars, making it the largest company ever funded by a venture capital. Smith turned FedEx into a global shipping power.
Key Service Marketing Issues:
Customers/ Services: FedEx has a strong adherence to its People–Service–Profit philosophy; it provides reliable, competitive, global air–ground
transportation of goods and documents that require quick delivery. The key position is to influence the customer's perception of ... Show more content
on Helpwriting.net ...
They received the Malcolm Baldrige National Quality Awardin the service category in 1990. They have developed their own quality system to match
their customer's standards.
Innovation: FedEx maintains about 670 aircrafts and more than 43,000 vehicles using them differently than any other company.
Technology and Communication: FedEx continues to search for new technology allowing a budget of $1 billion a year for information technology.
They have a highly controlled distribution system with constant information about the status of shipments allowing customers to track them. Weakness:
Cost of Fuel: FedEx is dependent on gasoline to run its business. Their stock is very sensitive to changes in crude oil. If there is a weakness in the
stock market we will see the company's stock drop. When the cost to run your business goes up it hurts the company's bottom line.
Slowdown Economy: A slowdown in the market can cause reduced demand of their services. They are feeling the impact in the domestic area of their
service at the moment.
Poor performance of Kinko's: They have recorded 2% lower revenues and if this keeps up it will impact the company's financial performance negatively.
Opportunities:
Expansion Globally: FedEx can continue to grow globally especially in the Asian Markets.
Expansion of e–commerce: They already have a presence with online shipping but should keep finding Internet companies to
... Get more on HelpWriting.net ...
Fedex Corporation Is The Parent Company Of Operation...
FedEx Corporation provides customers and businesses worldwide with a broad portfolio of transportation, e–commerce, and business services. FedEx
was founded in 1971. Headquarters is currently located in Memphis, Tennessee. There are currently more than 340,000 employees working throughout
FedEx Corporation. FedEx Corporation is the parent company of operation divisions, currently known as FedEx Express, FedEx Ground, FedEx
Office, FedEx Freight, and FedEx Services. Even though all of the listed companies are managed cooperatively under the FedEx brand name, they
operate independently from one another.
Company Overview
History
In 1965, Yale University undergraduate Fredrick W. Smith wrote a term paper that laid out the logistical challenges facing pioneering firms in the
information technology industry. Smith explained in his term paper how companies using airfreight shippers relied on passenger route systems, but
those didn't make since. He proposed a system specifically designed to accommodate time sensitive shipments. His teacher didn't find anything special
about his term paper, so he received just an average grade.
In August 1971, Smith bought controlling interest in Arkansas Aviation Sales located in Little Rock, Arkansas. While operating his new firm, he saw
firsthand how difficult it was to get packages and other airfreight delivered within one or two days. It was then when he set out to find a better way;
which was when Federal Express was born. Smith named the
... Get more on HelpWriting.net ...
Fedex Corporation ( Fedex )
COMPANY OVERVIEW
FedEx Corporation (FedEx) is a transportation service that offers overnight mailing services, freight services, logistics solutions, and business services.
The company is one of the largest express transportation companies, delivering small packages nationwide and worldwide. It mostly operates in the US.
FedEx has its main headquarters in Memphis, Tennessee and has currently employed approximately 300,000 employees in FY2014. The
company–recorded revenues of $45,567 million during the financial year ended May 2014 (FY2014), an increase of 2.9% over FY2013.The operating
profit the company made was $3,446 million in FY2014, an increase of 35.1% over FY2013. The net profit the company made was $2,097 million in
FY2014, an increase of 34.3% over FY2013.
Key Facts
FedEx Express is one of the world 's largest express transportation companies in the world, providing fast and reliable delivery to every U.S. address
and to more than 220 countries and territories. FedEx Express uses a global air–and–ground network to ensure a speedy delivery of time–sensitive
shipments, usually in one to two business days with the delivery time guaranteed. This is what the consumers want fast and secure services at a
reasonable cost.
SWOT ANALYSIS
FedEx is a global transportation service provider that offers overnight delivery services, freight services, logistics solutions, and business support
services. The company 's strong brand image not only ensures its ability
... Get more on HelpWriting.net ...

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Tnt Strategic Marketing Plan

  • 1. Tnt Strategic Marketing Plan Executive Summary The aim of this report is to make an in–depth research on TNT Asia region. In first part, we will analysis the internal influences by Porter 's Five Forces model. In second part, PESTEL model will apply for external influences. Lastly, SWOT analysis will be provided as a conclusion. Content Page 1.Introduction3 2.Micro–environment3 2.1Industry Competitors3 2.2Buyer3 2.3New Entrants3 2.4Supplier3 2.5Substitutes3 3.Macro– environmentError! Bookmark not defined. 3.1Political3 3.2Economic3 3.3Social3 3.4Technology3 3.5Environment3 3.6Legal3 4.SWOT3 5.Reference3 1.Introduction TNT (Thomas Nationwide Transport) was founded by Ken Thomas in Australia in 1946. Today, ... Show more content on Helpwriting.net ... 2.8Social The survivability of TNT will depend on the economic growth of the industry and standard of living. When there is growth in the industry there will be a need for delivery services because companies will need to deliver their stock from one place to another in order to sell. Another positive is the rise in income level and the standard of living; people may move to bigger houses or invest in new ones. This would require the use of a delivery service. If business is growing for one company, they may need to expand or to move to a bigger location, they will need transport to move their inventory. Some small business may then decide to outsource the job to TNT. 2.9Technology With the help of technology, TNT allows customers to track and trace their items through their website and short message system (SMS) and this would help ease the minds of customers. (http:/ /www.tnt.com/express/en_sg/site/home/shipping_tools.html). The advance system allows 24/7 service with the lowest manpower to work. 2.10Environment TNT delivers their freight using road and air transport. These kinds of transports are polluting the air and harming the environment. TNT wants to reduce the environmental impact of its business; their aim is to improve their carbon efficiency by 45% by 2020. Another ... Get more on HelpWriting.net ...
  • 2. Fedex Strategic Analysis Introduction: Federal Express Corporation (FedEx) started its operation in March 1973 building a express delivery company to global logistics and supply chain management company. With logistics as a key part of forming a strong strategy formulation FedEx provided their customers differentiating means thus winning a healthy customer loyalty with enormous. The growth of the express transportation and logistic industry was brought about by three main trends В•The globalization of businesses. В•Technological advancements and applications innovations. В•The changing market demand for more value added service.. В•Application of new technology to generate process efficiencies, and changing market demand for more value– added services. В• ... Show more content on Helpwriting.net ... Now with more geographic regions to cover FedEx had to encounter more competitors now. Some of the company's which were posing as threats to FedEx are as follows: UPS: United Parcel Service (UPS) was founded in 1997 to disseminate its logistics software to EC users. In early 1998, UPS formed a strategic alliance with open market a US based provider of internet software, to deliver a complete Internet commerce solution providing integrated logistics and fulfillment. .It was also working with IBM and LOTUS to standardize formats on its website. In 1999 UPS raised $5.47 billion through its initial public offerings,(IPO)The company shipped 55% of goods ordered over the Internet. DHL In 1993 DHL announced a four year, $1.25 billion worldwide capital spending program aimed at investing in handling systems automation facilities and computer technology. Though the company dominated the UK market it projected an increase in worldwide revenues of 18%, to $5.26 billion. It was 25% owned by Deutsche Post 25% owned by Lufthansa. TNT: TNT launched the worlds first global price checker service on its website that allowed customers to calculate the price of sending a consignment from one place to another to anywhere in the world. Other applications were under development that would allow customers to integrate with TNT's online service. TNT launched the express industry's first dedicated customer extra–net,
  • 3. ... Get more on HelpWriting.net ...
  • 4. Fedex Express : Fedex Freight Services Introduction FedEx is a worldwide shipping and solutions corporation that provides services for: Time–sensitive deliveries to all of the U.S. states and territories, logistics solutions and business support services. FedEx operates through four divisions: FedEx Ground, FedEx Freight, FedEx Services, and FedEx Express. FedEx Ground provides services in the U.S and Canada. The service offers Saturday delivery with no additional charges. FedEx Freight provides time–sensitive truckloads. Services extend through the U.S, Canada, Mexico, Puerto Rico, and the Virgin Islands. FedEx Services offers solutions for global supply chains, data management services, and e–commerce to its customers. FedEx Express was the first service offered by the company. It included the shipments of time–sensitive and air–ground express services. FedEx is one of the worlds leading transportation businesses delivering small parcels throughout the U.S and to 220 countries internationally. Company History Frederick W. Smith, creator of Federal Express came up with the idea while writing a term for a class he was attending at Yale. His term paper revolved around the fact that mail takes an extended amount of time to reach its recipient. He wanted to develop a delivery system that would be able to deliver time–sensitive packages overnight. The company was later developed when he purchased a controlling stake in Arkansas Aviation Sales after his service in the Marine Corps. Frederick Smith's ... Get more on HelpWriting.net ...
  • 5. Airborne Case Study Harvard Business School Airborne Express Case Study Q1. How and why has the express mail industry structure evolved in recent years? How have the changes affected small competitors? The Express mail industry in the United States had a volume of $16–17 billion on expedited shipments in the year 1996. In the years before shipment volumes has risen 15–20% per year. However due to higher competition prices have fallen which resulted in a rise of only 10–15% in total revenues. As an example of this stands the revenue and the operating margin of the biggest player that make up 45% of the market. Federal Express' revenue has more than quadrupled in the ten years prior 1996, however its operating margin has more than halved. (Exhibit 2) The ... Show more content on Helpwriting.net ... DHL is also the specialist for services that include fast shipments to the far and hard to reach corners of the world, with hubs situated in Nairobi and Bahrain. TNT's focus lies on international markets as well, however focuses its efforts on Europe. Another second tier player is BAX Global who specialized in business–to–business heavy cargo. Earlier BAX Global was focused on the market for overnight letters, which resulted in large losses, till the strategy was shifted towards heavy cargo. The company RPS does not offer overnight delivery but focuses on two–day delivery and a cheap group network with a sophisticated information technology, targeting price–sensitive business customers. Q2. How has Airborne survived, and recently prospered, in express mail industry? In the fife years prior 1997 Airborne Express has grown faster than its two bigger rivals, giving it about 16% of domestic express mail market share in 1997. Airborne has achieved this by a couple of measures that allowed it to keep its costs down and guaranteed Airborne Express success in its niche. One of the key decisions of Airborne Express was to target regularly shipping business customers and purposely passing over residential deliveries and infrequent shippers. Ray Berry, vice president of Field Services Administration, commented this selection of customers: " Since we can't be all things to all people, we pick our kind of customer deliberately." And it ... Get more on HelpWriting.net ...
  • 6. Ups vs Fedex Executive Summary Based on our analysis regarding competitive advantage, company comparison, financial data and operational excellence, we believe UPS will be a better performer in the long run as compared to FedEx. Competitive Advantage UPS has a first mover advantage over FedEx, beginning air delivery service in 1929. Although FedEx was the first to own and operate their own planes and introduced the innovative "hub and spoke" distribution pattern, UPS leads in specialized transportation and logistics services. In 1975, UPS promised package delivery to every address in the United States; FedEx was not able to guarantee delivery in every area. When deregulation of the domestic airline industry and trucking industry occurred, the ... Show more content on Helpwriting.net ... FedEx volumes in China grew by more than 50% between 2003 and 2004. UPS was active in China beginning in 1988, and was the first carrier to offer nonstop service from America. By 2003, UPS had 6 weekly flights to China with direct service to Beijing and Shanghai, serving about 200 cities with expected growth of about 60% on its main route. UPS also predicted peak–season demand to exceed capacity. Financial Analysis UPS appears to be the better bet for the long–term because its historical financial results are superior to and more consistent when compared to FedEx. If we consider EVA (Economic Value Added) as the key gauge for evaluating both firms, UPS is clearly the better performer. In the twelve year period of 1992 through 1993, UPS created $4.33 billion in cumulative economic value, while FedEx destroyed $2.25 billion. Because of its superior profitability and cash generating capabilities, UPS has better prospects for funding growth through internal and external sources. Even if we weaken the assumption of past history as a good indicator for the course of future financial performance and management, the data still indicates UPS is in a better financial position for taking on future growth. Decomposing EVA UPS outperformed FedEx ... Get more on HelpWriting.net ...
  • 7. Airborne Express Exhibit: Five Forces Outline 1. Barriers to Entry–Medium to High for the following reasons: a) Economies of scale–the top three carriers (Federal Express, UPS, and Airborne Express) serve slightly more than 85% of the domestic express mail market. All three carriers deliver a high volume of packages, and thus, are able to spread fixed costs over more units. Also, each carrier has integrated technological systems that improved operational efficiency. In addition, intensive training programs of employees increase service and delivery efficiency. b) Extremely large capital requirements are necessary to enter the market. Hub facilities at airports (e.g. FedEx's hub near Dallas cost $250 million); capital expenditures for ... Show more content on Helpwriting.net ... However, such avenues of delivery limit the customer's presentation options (cannot bind business reports / "deliverables"). Also, the customer cannot transport a non–paper package (e.g. a book, a desk) via this delivery system. b) Regular mail only cost 32 cents for letters. The post office is also very convenient. However, in regards to packages, the post office is very poor in quality service and efficiency (cannot track packages efficiently and has an on–time delivery record much worse than commercial carriers) 3. Bargaining Power of Suppliers–Medium for the following reasons: a) Postal materials–numerous suppliers of necessary postal and packaging materials. Switching costs are not high. The postal materials suppliers have low bargaining power. b) Software programs combined with extensive customized programming updates / additions. The software and software customization industries both have numerous suppliers. However, given the complexity and uniqueness of such an information network, there are probably only a limited number of software and customization companies that can provide a carrier with a high quality system that is capable of smoothly integrating all the operation and customer service divisions. Furthermore, the switching costs have the potential to be extremely high because such a transfer could disrupt communication between the divisions, leading to poor quality service. In addition, the company would ... Get more on HelpWriting.net ...
  • 8. Airborne Express : Case Study 1.How and why has the express mail industry structure evolved in recent years? How have the changes affected small competitors? The US express mail industry is highly consolidated. 85% of the market is served by 3 service providers. There are six second tier players who serve the remaining 15%. FedEx and UPS lead the industry in services and innovation. The following trends have been observed in this Industry. Services: A host of services are provided to suit the needs to different businesses. Overnight shipping and next–morning delivery are most popular amongst other services like next–afternoon delivery and second day service. Same–day and early–next morning services are even costlier. Shipment volumes have risen over the decade ... Show more content on Helpwriting.net ... As such there is no brand loyalty, however all the major players are know for their reliability and for a new entrant to establish the same will take a lot of time. There won't be any cost advantage factor as the hub–and–spoke model, used in this industry, can be implemented by new entrants. Economies of scale will not be in favor of the new competitor as the initial volume would be low. Switching costs are not high in this industry. Rivalry among established companies: This industry is highly consolidated with only 3 major players – somewhat an oligopoly. The industry is also characterized by numerous price wars between the 2 giants, namely, UPS and FedEx. Rest of the companies generally follow the trends set by these two firms or fall out. The exit barriers to this industry are high. This is due to the investments in hubs, vans, jets and other capital extensive infrastructure. Bargaining power of buyers: Businesses and individuals all fall under the customer's category for this industry. Big customers do get volume discounts and can negotiate prices with sales representatives. However smaller customers have to take what is being offered to them. The only say they have is that they can switch between the players, but due to intense competition, the prices offered are generally the same across the service band. Bargaining power of suppliers: The inputs to this industry are fuel, planes, vans, customs & permits etc. the companies do liaison ... Get more on HelpWriting.net ...
  • 9. Airborne Case ––––––––––––––––––––––––––––––––––––––––––––––––– Airborne Express Case 1. How has Airborne survived, and recently prospered in its industry? Please address why you think it was difficult for bigger competitors such as FedEx to imitate Airborne's strategy. Although Airborne does not get the publicity thatFedEx and UPS get, they have managed to remain the third largest player in the express mail industry. One unique aspect that has helped Airborne maintain a leading position in the industry is their ownership of an airport, which serves as their major hub. This is a huge advantage because they have complete control over the timing of each shipment and what comes in and out of the airport. Airborne also purchases and modifies used ... Show more content on Helpwriting.net ... With approximately 21,000 employees, compared to FedEx's 129,000 and UPS's 336,000, Airborne had to use unique business decisions to master movement, balance, and leverage within the express mail industry. The first technique suggested by Yoffie and Kwak to master movement was referred to as the "puppy dog ploy". They believed small companies should "keep a low profile and avoid head–to–head battles that they're too weak to win." (Yoffie&Kwak, 3) Airborne succeeded in mastering this technique through direct marketing. They targeted large clients directly, which allowed them to keep a low profile while building a strong position. Airborne's actions also related to Yoffie and Kwak's technique number 2: define the competitive space. Airborne recognized that FedEx and UPS held a solid ground in the industry, so they decided to focus on large–volume business customers. While still competing in the same express mail industry, Airborne found their own space in the market. In order to maintain balance, Airborne's made decisions that align Yoffie and Kwak's technique ... Get more on HelpWriting.net ...
  • 10. Express Opportunity in China 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,... Show more content on Helpwriting.net ... However, despite the investment enthusiasm surrounding exponential growth rates, there are still huge challenges in doing business in China: Overregulation, fragmentation, a weak transport network, and congestion are holding back the industry. There are many risks for western companies attempting to China Express Delivery Market (2004–2008) in USD Billions and Major Drivers of Growth Foreign Trade Foreign Trade пЂґ 2001–06 CAGR +30% пЂґ Import/export volume exceeding $1400 bn p.a. International Express Domestic Express Domestic Domestic Economic Economic Development Development пЂґ 8–10% GDP growth in recent years пЂґ Expect 10% average growth of air cargo traffic next 20 years (Boeing) +28% 4,4 7,4 5,8 2,6 2,8 0,9 3,5 1,1 1,4 3,1 2006 1,9 3,8 2007E Foreign Direct Foreign Direct Investment Investment пЂґ FDI exceeding $60 bn p.a. пЂґ Outward FDI by Chinese Enterprises over $7 bn in 2006, growing at 26% 4,8 1,9 2004 2,5 2005 2008E Market Market Opening and Opening and State Support State Support Source: Market Research, Booz Allen Hamilton Estimate пЂґ WTO agreements пЂґ Closer Economic Partnership Arrangement (CEPA) When China joined the World Trade Organization (WTO), the country experienced a rapid market liberalization and modernization as well as rising domestic consumption. As a result, the Chinese express market continues to offer huge growth prospects for ... Get more on HelpWriting.net ...
  • 11. Current Market Conditions of FedEx Project Overview пїЅ PAGE * MERGEFORMAT п їЅ1пїЅ Current Market Conditions – FedEx March 1, 2010 University of Phoenix пїЅ пїЅ Current Market Conditions – FedEx INTRODUCTION The purpose of this paper is to review the current market conditions for FedEx. Like many organizations, FedEx is faced with different market conditions on a regular basis. Team A has reviewed some of the market conditions and addresses which ones will or will not change. The research that Team A compiled together are conditions such as market structure, impact of new companies, pricing, technology, productivity, price elasticity, competitors, and several more. After reviewing the market conditions, Team A will show how FedEx has managed to continue growing in today's... Show more content on Helpwriting.net ... –Offering shipping for improved customer service and convenience via fedex.com –Pioneering the use of wireless technology for shipping over 25 years ago with the introduction of the Digital Assisted Dispatch System (DADS). PRODUCTIVITY
  • 12. It is clear that FedEx wants to stay ahead of competitors such as UPS, USPS, and DHL. In today's market it is about having the best people, the best technology, and having the strongest customer service attitude. With these three key elements's FedEx will continue to grow the business in the now, but more importantly is strengthen the future business. FedEx has identified the importance of employee relationship, which in the short and long run improves overall customer service. If the employees are happy with FedEx than overall productivity will increase. "The Employee Loyalty Index (ELI) at FedEx Express complements i4cp's core focus of leveraging human capital as a driver for increased market performance. The ELI is a tool that gauges multiple indicators of employee loyalty – and other critical factors that drive this commitment– on an ongoing basis. The information is then used to develop proactive processes and forward–thinking initiatives. The index is not designed to simply measure loyalty for loyalties sake, but to act on the premise that loyal employees help to build customer loyalty, and, in turn, greater profits." (Retrieved 3–1–2010) COST STRUCTURE The cost structure of ... Get more on HelpWriting.net ...
  • 13. Taking a Look at the FedEx Corporation FedEx Corporation provides customers and businesses worldwide with a broad portfolio of transportation, business services and e–commerce. FedEx was founded in August, 1971. It started to operate on 17 April, 1973 with the launch of 14 small aircrafts from Memphis International Airport. Federal Express officially adopted "FedEx" as its primary brand in 1994. In the late 1980s, FedEx expanded internationally. In 1988, they bought 3 Japanese freight carriers and Italy's SAMIMA. While in 1989, they bought Tiger International. That year it doubled their overseas sales to become the top air cargo company. FedEx struck a deal to transport mail shipments with the United States Postal Service and FedEx drop boxes were placed in post offices in 2001. FedEx bought ANC Holdings (UK–based express transportation company) and re–branded it as FedEx UK, for about $240 million in 2006, gaining a network of 80 offices and 2,200 fleet vehicles. Today, FedEx serves over 220 countries with an average daily volume of 7.5 million shipments. It has more than 275,000 people worldwide. FedEx Corp today ranked number one in Express Delivery industry for customer satisfaction. Company Profile FedEx has three levels of executive positions in HR Management. The first level is Board of Directors; they in charge of information technology omission and supervise all the operations broadly, control and nominating, compensation and audit and so on. The second level is Executive President and Chief Executive ... Get more on HelpWriting.net ...
  • 14. Dhl’s American Adventure DHL's American Adventure 1. DHL used several strategies for entering market of the United States, they can be divded into corporate level ,business level and operational level strategies. For the corporate level strategies, Globalization Strategies are adopted, DHL invests $1.2 billion in entering the U.S. market. DHL is the largest express carrier in Europe with a 40% share, and the largest international express carrier in Asia, also with 40%. There is a global economy now, all businesses involved in foreign trade, world trade has to be transported, and DHL thinks that they have to be everywhere for providing the transport. If DHL did not enter in the U.S. with a completed network, it would be very difficult for them to hold... Show more content on Helpwriting.net ... DHL has a better situated in terms of air transport after completing the integration of Airborne Inc.. DHL is a company that capable to change, innovate, be flexible, adapt and learn. DHL changes its focus to U.S. customers who want to cut costs by sending parcels overland rather than by air, it is a case of changing itself to adapt the U.S. trend. Learning to employ and train staff as Starbucks can show its capability of learning. Moreover, DHL provide personalized service to customer and it becomes one of its most important competitive advantages. Focused Differentiation is used by DHL to provide high perceived service benefits to selected market segment. It can be explained by the case of Skechers USA Inc., "UPS and FedEx are more reluctant to go to remote locations. DHL will just do it. If their driver has to sit in the parking lot and fill out the air bills, he'll do it." says Michael Cardenas, Skechers'office services manager. All of the competitive advantages of DHL are best suited to aa mature industry. In this mature industry, it is under Hypercompetitive conditions. As to sustain competitive advantages, organization have to focus on ability to change, speed, flexibility, innovation and disruption of market. DHL is an expert in express carrier, and all above–mentioned competitive advantages of DHL are suitable in this mature industry with hypercompetition. There are some weaknesses of DHL ... Get more on HelpWriting.net ...
  • 15. Diversity Action Plan Diversity Action Plan University of Phoenix SOC315: Cultural Diversity Dr. Abbas Khajeaian October 21, 2007 Introduction The purpose of this paper is to describe a selected organization or workgroup that has grown in population and diversity and to develop an action plan that has accurate information best describing the trends in population growth and diversity within this organization. The organization selected for this diversity action plan is Federal Express. Diversity Action Plan Organizations in every size are realizing the value of creating a plan to increase and manage diversity within their companies. The steps in developing this plan can include; assessing needs,... Show more content on Helpwriting.net ... For this strategy to be successful, everyone in the organization must be represented. Evaluation Evaluation is key to any diversity initiative. Indicators of success may include changes to the employee profile, recruitment and retention patterns, numbers of employees accessing training or other optional program components and employee feedback on diversity programs. Tools for monitoring and evaluating program success may include: progress reports reports from a diversity task force or diversity committee feedback from staff interviews or surveys interviews with management and consultants analysis of key data such as numbers of employees accessing training or other optional program components Federal Express ... Get more on HelpWriting.net ...
  • 16. A Business Project On Dhl Essay DHL was established in 1969 by Adrian Dalsey, Larry Hillblom and Robert Lynn. The three partners were delivering shipping services, transporting documents by air only between Francisco, California, Hollywood and Hawaii so the goods can pass though customers with less delay noting that it was the only shipping company in the middle East. In 1982, Fadi Ghandour established Aramex in Amman, Jordan. Ghandour was born in 1959 to a Lebanese Muslim family. His father is Ali Ghandour, who was the chairman of the Jordian national airline. Fadi was graduated from George Washington University with a BA in political science. After graduating from college, Fadi was aiming to go through a business project in the Middle East. He felt that the Middle East needed someone to fill a niche in the international courier delivery business. Therefore, he met with William Kingson, Aramex has been founded which has developed to be nowadays a giant. Aramex started operations in Amman as a global provider of logistics and transportation solutions. As hierarchical division of Aramex, the chief sustainability and compliance officer of Aramex was Raji Hattar. As for Reem Khoury, she was the manager of CEO operations. The former chief operating officer was handled by Osama Fattakeh. Hereunder is how Aramex has developed briefly through the years: In 1982Aramex was established in Amman, Jordan In 1987Aramex was used by FedEx, Airborne Express and other large companies in the US. In this year, the ... Get more on HelpWriting.net ...
  • 17. United Postal Service Mission Statement The United Postal Service Company was established in 1907 in Seattle, Washington. The company provides ground and express delivery services to more than 200 countries, offering fast, reliable and convenient service to approximately 10 million customers worldwide. UPS is one of the largest package delivery company worldwide. The company's main competitors are FedEx, DHL and USPS. Today, UPS regulates more than 26,000 access point locations, 2000 operating facilities worldwide with over 100 million daily online tracking (UPS tracking) and approximately 5 billion delivery volume in 2016. The United Postal Service has come a long way since inception and has gained tremendous success over the decades and continues to strive to remain the dominant ... Show more content on Helpwriting.net ... The United Postal Service needs to adjusts these expenses to the market standing and corporate mission, which will reflect their service value as opposed to their competitors' offer values. Furthermore, there are more essential components that create the company's attitude to the assessing course of action, which includes; planning what comparable stature services the market will pay for, advocating its prominence, increasing its profits with assurance that it can meet its revenue and other goals (Woodward and Clark, 2016). Through these techniques, the company will be in a position to deliver high quality service at a reasonable cost. The two main factors that will guarantee profitability and achieve the company's objectives are the support the company's image and benefits growth and development. Therefore, with these two factors established, there will be a positive outcome to the pricing ... Get more on HelpWriting.net ...
  • 18. The Fedex And Its Impact On The United States Of America... INTRODUCTION FedEx can be seen everywhere. Federal Express is known as FedEx. It is an express transportation company which was founded by Fredrick Wallace Smith in the early 70's. FedEx is headquartered in Memphis, Tennessee, United States of America. Amidst Smith's college days, he began to descry that the United States was conforming itself to become a service aligning economy. It was longing for a candid overnight service driven company, which would be designed to conveyor packages and essential documents. While giving his Mid–Term papers at the Yale University, he mentioned this idea. It was completely shunned by his professors, thinking that it would never take shape. But by happy chance, he did not pay heed to such criticism and slogged towards achieving his dream. He was able to find investors who were willing to invest an amount close to 40 million dollars. His friends and family supported him immensely. He was able to arrange for banking financing too. And by this he was able to start FedEx with 80 million dollars, being the largest company in his era to have been able to raise itself by such a prodigious venture capital. BACKGROUND FedEx was roaring high and was killing all its competition by making them weaker with time. FedEx constructed a super–station at the Memphis, Tennessee. FedEx planned that it would load all the packages from the United States and would transport and ship it out every night. At present, FedEx has more than 150,000 workers ... Get more on HelpWriting.net ...
  • 19. Fedex Case Study Essay 1. From the point of view of the industry incumbents, is the express mail industry attractive? How has Airborne survived, and recently prospered, in its industry? Is its success attributable to its capabilities, its position, or industry attractiveness? The express mail industry can easily be considered an inherently tough industry to operate within given the myriad of factors that come into play, such as unions, government regulations, cost of technological advancement, and international borders to name a few. Despite this, the industry could be seen as offering opportunities, which could be seized by attracting customers based on the quality of the service being offered. Consequently, this also encouraged mimicking between ... Show more content on Helpwriting.net ... Conversely, they could be shipped to hubs (which passengers did not do like today) where they would be sorted during the night and then sent onwards to their final destination from there thus offering overnight services. Fred also benefitted from being a first mover in the express mail industry. UPS that had been offering delivery services since the beginning of the 20th century. However, they had only relied on their ground network and did not establish their own fleet of aircraft until the early 80's, after RPS had shook their existence and after seeing how fast Fedex's business was growing. Being a first mover enabled Fred to start small and grow the business in line with demand. Fedex did not have to catch up to an industry incumbent since he was the one inventing the express mail airfreight business. If not, it would have called for a much greater investment and made it more difficult for him to penetrate an existing market. UPS on the other hand was able to enter the market since they were an established company with means to invest heavily in this new service. It is also likely that by being an early entrant, it also made it somewhat easier for UPS to start their own fleet than it would be for anybody to make that same attempt today, not omitting the fact that they had great experience in delivery services at that point as well. 3. Quantify Airborne's sources of competitive advantage. a) First, explain in detail the cost position ... Get more on HelpWriting.net ...
  • 20. Courier Pak 1. Evaluate the value proposition offered by the Courier Pak The product in question is a freight product that covers shipment of documents or other items up to a weight of 2 pounds and offered overnight delivery of the documents. Another value proposition of this product is the added safety feature of it being shipped in waterproof or tear–proof envelopes ensuring the documents are shipped without the possibility of damage. The targeted segment for this product is the Rush segment customers who are not too price sensitive and expect delivery of the consignment on the following day. Typically the order for a consignment is placed by either the executive or his secretary that desires the shipment. In this segment, Federal... Show more content on Helpwriting.net ... 4. Fixed Costs: This is an industry with high fixed costs (hub operations and airplanes) and these costs have already been incurred by Federal Express. To establish economies of scale it is sensible to continue offering a profitable product such as Courier Pak. 5. Reputation: This is a segment that relies on the providers' ability to stick to delivery schedules with reliability. If Federal Express were to exit this segment it could send a negative signal to the clients of their other time sensitive products such as Priority One indicating an inability on the part of Federal Express to deliver on time. That being said, Federal Express is faced with an uphill task in growing its market share. The target segment in this case is corporates and it is very difficult to get corporates to change buying patterns. It is faced with stiff competition from incumbent Emery Air which currently has the highest recall and also seen as a reliable freight service provider. Additionally, it is trying to market a product that is fairly standardized and does not have many distinguishing features. The best way to expand sales for such a product is by improving the perceived value through innovations and higher visibility. In my opinion, Federal Express would benefit from adding features that indicate reliability such as the tracking features offered by ... Get more on HelpWriting.net ...
  • 21. Analysis of Strategic Position ANALYSIS OF STRATEGIC POSITION Deutsche Post World Net has a unique spectrum of international services including brands DHL, Deutsche Post and Postbank with different types of services. Thus, we have decided to focus on DHL in this analysis in order to better understand to strategic position within logistic services. PESTEL ANALYSIS: Legal: в–Є Deregulation and liberalisation of the airline industry в–Є Environmental regulations and protection Political: в–Є Liberalisation of international trade в–Є International trade regulations and restrictions в–Є EU expansion(needs for infrastructure and information technologies) Economic factor в–Є Economic integration в–Є Globalisation Economic growth в–Є Stage ... Show more content on Helpwriting.net ... Market positioning [pic] Market position of DHL as well as its major competitor is in broad market with differentiated services. Source: http://group.tnt.com/investorrelations/sectorstatistics/marketstatistics/index.asp The biggest part of DHL 's businesses run in intracontinental and intra–Europe. DHL gain good position also in Pacific Asia, where has around 40 per cent of logistic market. DHL has only 7 per cent in US and where face to competition with major competitors FedEx, UPS and on this market also US Postal Service. DHL lost their customers during the complex air and hub consolidation investing millions of dollar in this market and this market will be not profitable until 2009. Business model Recommendation
  • 22. To be on Asia market– has the biggest growth potential... References: (2006), Market Segmentation, Targeting, and positioning[online], Avaliable at: , >, [Accessed 25th November 2006]. Boyd, J. D.(2006), DHL parent DPWN Restructures, Traffic World 10/2/2006, Vol. 270 Issue 40, p36 Logistic Today (2006), DHL, FedEx, UPS Expansion of Service To and In China [online], Available at: , [Accessed 25th November 2006]. 2006, DHL 's American Adventure[online], Availible at: , [Accessed 25th November 2006]. Porter's 5 forces Competitive rivalry: In Deutsche Post World Net annual report 2005 is written "Globally, Deutsche Post World Net has a comprehensive range ... Get more on HelpWriting.net ...
  • 23. Fedex Corp. vs United Parcel Service, Inc Case Study I. Executive Summary In this report we focus on the two main competitors in the package delivery industry: Federal Express Corporation (FedEx) and United Parcel Service of America, Inc. Studying FedEx, UPS and their competitive relationship in the decade from mid – 80's to mid – 90's gives a good insight for the companies' and industry's future. The two companies have different strategic goals and are operating in the same industry but in different main markets: FedEx is working on "producing outstanding financial returns" and focuses on the overnight air market while UPS is looking for "earning reasonable profit" and its core business is the two–day ground delivery. However, by 1981, the two companies started to have a strong sense... Show more content on Helpwriting.net ... In addition to that, FedEx came up with new services such as Saturday deliveries, delivery by 10:30 A.M., customer interfaces (drop boxes, drive through stations and express delivery stores) and same day pickup of order. This is to distinguish its services. More on that, FedEx's philosophy of "People–Service–Profit" was successful in insuring a union free workforce devoted to customer focus. In 1978, deregulation in transportation helped FedEx to acquire larger planes therefore achieve lower cost. Trade deregulation in Asia–Pacific enabled FedEx to expand further. The acquisition of Gelco express, Tiger International, and establishment of Airport Hub in Brussels expanded FedEx internationally. Inflation and rising global competitiveness generated the need for "just–in–time" supply model, which was the advantage supported by FedEx advanced technologies. Some inhibiting factors were the competition that has heavily evolved as a number of competitors (e.g. Emery, USPS, and UPS) entered the overnight delivery market as well as imitate other FedEx new services. More on that, they were able to acquire similar IT solutions with lower costs and as a result presented these services with cheaper prices. Moreover, in the attempt to expand internationally, some acquisitions were over–priced and revealed insufficient market studying. Europe low demand that resulted in the shutting down of Brussels hub as well as Tiger international operations caused a loss of $1 billion ... Get more on HelpWriting.net ...
  • 24. Mission Statement For Fedex Introduction FedEx is a worldwide shipping and solutions corporation that provides services for: Time–sensitive delivers to all of the U.S., logistics solution and business support services. FedEx operates through four divisions: FedEx Ground, FedEx Freight, FedEx Services, and FedEx Express.. FedEx Ground provides services in the U.S and Canada. The service offers Saturday delivery with no additional charges. FedEx Freight provides time–sensitive truckloads or less. Services extend through the U.S, Canada, Mexico, Puerto Rico, and the Virgin Islands. FedEx Services offers solutions for global supply chains, data management services, and e–commerce to its customers. FedEx Express was the first service offered by the company. It included ... Show more content on Helpwriting.net ... when customers use two services Mission & Goals FedEx's mission statement is to produce superior financial returns for its shareowners by providing high value–added logistics, transportation and related business services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards. Their long term goals stated from their website include: Achieve 10% operating margin Grow profitable revenue Improve case flows Increases return to share holders FedEx plans to achieve those goals by: Grow their core packaging business Expand internationally Increase supply chain capabilities Improve e–commerce and technology Add new services
  • 25. By 2030 FedEx plans to increase growth in key countries. China 4%, 50 million ... Get more on HelpWriting.net ...
  • 26. Mccarran Airport Essay McCarran International Airport (LAS) is the main commercial airport for the Las Vegas Valley and Clark County, Nevada. It is roughly 5 miles south of Las Vegas, NV in Clark County. LAS covers nearly 2,800 acres, with four runways and two terminals. LAS is owned by Clark County and operated by the Clark County Department of Aviation (DOA) (AirportIQ, 2015). The airport is named after former Nevada senator Pat McCarran (Hall–Patton, 2010). LAS is a focus city and the largest operating base for Allegiant Air andSouthwest Airlines. Section 1 Airport History 1942 – George Crockett, descendant of frontiersman Davy Crockett, established Alamo Airport, currently occupied by McCarran International 1948 – Clark County purchased the airfield and named it McCarran Field for U.S. Senator Pat McCarran. 1978 – Deregulation spurred a plan called McCarran 2000 which funded $300 million to construct new terminals, parking facilities, runway additions and expansions, additional gates, upgraded passenger assistance facilities and new roadways. 1987 – McCarran International completed construction on McCarran 2000 1990s – Gates and check in counters upgraded to use a common set of computer hardware. CUTE, Common Use Terminal Equipment. This eliminated the need for each airline to have their own equipment and allowed LAS to reassign ... Show more content on Helpwriting.net ... Commercial service airports accommodate scheduled air carrier service, provided by the world's certificated air carriers. Commercial service airports operate under unique regulations enforced by the FAA and Transportation Security Administration (TSA), as well as state and local governments. In addition, other federal and local administrations, such as the Environmental Protection Agency (EPA), and local economic development organizations, indirectly affect how commercial service airports operate (Wells, Young, ... Get more on HelpWriting.net ...
  • 27. Swot Analysis Of Fedex FedEx is one of the most well–known and successful businesses in the shipping industry. The structure of this organization has enabled it to become a major competitor in its field. Examination of the structure and internal workings of this multifaceted association demonstrates that it has been streamlined and set up such that has augmented its proficiency in the market. FedEx has made an organization that has fiscally been very effective. In any event, this does not infer that it doesn 't have space to develop and enhance from its present standing. The joining of new, developing patterns in innovation and online networking business activities could make the way toward overseeing and dispatching less demanding for the organization.... Show more content on Helpwriting.net ... The two firms are in a steady fight to keep up piece of the overall industry in their separate specialized topics while turning into a bigger player in the other 's field. Both firms spend intensely on publicizing and frequently coordinate each other with regards to fuel extra charges, builds/diminishes in estimating, and even acquisitions (UPS obtained Mailboxes Etc.; FedEx stuck to this same pattern with its buy of Kinko 's). With regards to the worldwide transportation advertise, DHL is thought to be the pioneer. FedEx, be that as it may, profit significantly when DHL exited the US expedited service advertise a couple of years back. The company is trying to compete with DHL by obtaining companies that are already reputable in various international markets and investing heavily in infrastructure (planes, trucks, routes, and hubs) in those locales. The threat of new entrants realistically competing with FedEx is very low and "this is due in large part to the huge costs associated with entering the delivery market on a wide scale" (strategic report). The investment that would be needed to obtain the appropriate "levels of planes and vehicles combined with building up the necessary infrastructure is mind boggling" (strategic report). Besides, it is essential to address the barrier that another firm would confront as the Federal Aviation administration and air routes/landing rights. The ... Get more on HelpWriting.net ...
  • 28. Advertisements For The Deutsche Post Dhl Logistics Services Both Figures 1 and 2 are advertisements for the Deutsche Post DHL logistics company that provides domestic and international delivery services. However, Figure 1 is more specifically designed for DHL Express, a division of DHL that provides express delivery services. The purpose of both advertisements is to promote the quality and efficiency of the DHL logistics services. Figure 1 is precisely targeted at customers who require time–critical delivery services, whereas Figure 2 is targeted at anyone who demands logistics services in general. Both advertisements are in the form of print media with minimal use of language. Similar techniques including the use of slogans and colour are employed in both advertisements to convey their message effectively. Both advertisements are targeted at individuals and businesses that require delivery services. Figure 1 is particularly aimed at potential customers who need priority express delivery services such as time and day definite services. This is conveyed through the logo, "DHL Express", which identifies the specific segment of the company. On the other hand, the target audience for Figure 2 is generally any potential individual or business with occasional or regular delivery needs. This advertisement focuses on promoting DHL's prime quality of time–efficient delivery using a short and clear–cut slogan, "Always first." Although the logo for Figure 1 is slightly different from the second one, both advertisements use logos and slogans ... Get more on HelpWriting.net ...
  • 29. Airborne Express: Harvard Business School case. Q1) What is the industry attractiveness like in 1997? Has it changed in recent years? Q2) Does Airborne Express have a competitive advantage? Is it sustainable? Q3) What recommendations will you give Airborne Express? –––––––––––––––ESSAY START–––––––––––––––––– Industry Attractiveness in 1997 The industry is defined as the Domestic US Express Mail industry. This includes overnight and second day delivery. In order to assess the attractiveness of the industry, a Porters' Five Forces analysis has been conducted as follows. Rivalry The industry consists of three major players and six second–tier players. There is intense competition between the players as shown by the price wars between UPS and Federal Express. Although the market is ... Show more content on Helpwriting.net ... However, the power of employees has grown considerably since the early 1990s. Even though UPS was a manager owned private firm, the employees went on strike in 1997 and successfully obtained wage rises and other benefits. Federal Express handed out $20 Million worth of bonuses at the same time to thank their employees as well as make sure that they did not consider similar actions. This shows that employee power has increased in recent times leading to lower industry attractiveness. Customers Since the early 1990s, the players in the market have copied each other's innovations and this has led to very little differentiation of products in the market. Customers in this industry are very price sensitive and little differentiation allows them to shop around for the best deal. In businesses, there was also a trend towards contracts with multiple suppliers and this further increased customer power. These factors combined have led to lower
  • 30. industry attractiveness since 1990. Substitutes In 1990, email was not a viable substitute as it was still a part of the research network and not commercially available. The only substitute was standard mail and facsimile. Therefore, in recent years, attractiveness has lowered due to the introduction of another substitute. New Entrants It would be more difficult for a new entrant to enter in 1997 than it would have been in 1990 as the current incumbents have had 5–7 more years of benefit ... Get more on HelpWriting.net ...
  • 31. My Experience In My Life Life. Have you ever mistaken a test a life or death situation? I have in 6th grade. I thought I'd do horrific in a science test, but who knew it would make me feel successful. It was the year 2015. Little 8 year old me would be amazed. After watching the movie 2012, I was wondering why hasn't the world ended since 2012 went by. Now that it's 2015, I wish that was true. It was 1st period science class. The sun had not yet raised up and high in the wonderful black and cloudy sky. All around me I could hear classmates bickering and yelling. I mean, that's what kids do. I see people hanging out with their friends; I also see boyfriend and girlfriend hugging. The bell had rung like it was a siren for a war call, super loud. All the kids jolted to their seats; the teacher strolled in. "We will have test coming on (don't remember the day, I was 11 and who pays attention to small details)" said Mrs.(I don't remember her name either. I never did like that teacher, unlike this one English teacher I have called Mrs.Smags). Test day was coming and I could see it flying through the light blue sky with beautiful light feathery wings. On that test it was written, NAME. I was so nervous; I thought I would even get that question wrong. You see the problems with test, not the literal test, is that I could never ever be perfect at them. I am a human, a flawed human. As shakespeare once told, "Be not afraid of greatness: some are born great, some achieve greatness, and some have greatness ... Get more on HelpWriting.net ...
  • 32. Airborne Express and Husky Injection Essay Airborne Express and Husky Injection Molding Systems Airborne Express 1. Perform a five–forces analysis of Airborne Express' industry. Forces| Items| Power| Rivalry| * Big competitors are FedEx and UPS; * Smaller competitors like BAX Global, DHL, Worldwide Express, Emery Worldwide, RPS, TNT Express, Worldwide, and US Post Service| Keen competition with big competitors as they account for the lion's share of the market| Entry barriers| * Economy of scale * CAPEX on IT, facilities, aircrafts and airports, trucks, * Brand loyalty, licensing, customer networks| High entry barrier to the industry because of large economy of scale, high CAPEX, and dominating market shares of big players| Substitutes| * Emails ... Show more content on Helpwriting.net ... Unlike FedEx and UPS, Airborne owned the airport that served as its major hub, so it did not pay landing fees nor face any obstacles to tailoring facilities to its needs. It also built a warehouse in the airport and leased it to business customers, so as to increase delivery speed. Moreover, the airport's status as a Community Reinvestment Act one led to reduced property taxes. Airborne relied less on automation and more on humans, in particular part–timers that were paid relatively low. Its fleet also consisted primarily of used aircraft to reduce CAPEX. It managed to maximize its payload, which was roughly 80% full, around 10% to 15% more higher than its competitors. Airborne's customers were concentrated in major metropolitan areas. 80% to 85% of its volume was shipped among the top 50 metropolitan areas, while it was below 60% for FedEx and UPS. It could also use trucks (one–third of transportation cost of aircraft) more often than its competitors as a greater portion of Airborne's volume consisted of afternoon and second–day deliveries. In terms of pickup and delivery, Airborne did not maintain retail service centres. It hired contractors to handle 60% to 65% of its volume, so it could save cost by owning a lesser portion of delivery trucks. Its courier generally picked up and delivered more parcels per stop than FedEx, reducing labour costs per unit by 20% and 10% for pickup and delivery respectively. b. How much ... Get more on HelpWriting.net ...
  • 33. The Express Mail Industry In the past there was no thing as overnight express delivery for packages or freight. Then the top 3 competitors in the delivery service industry that held 85% of the market were Airborne Express (AE), United Parcel Service (UPS) and Federal Express (FedEx) and, the remaining market share was among six second–tier companies. In the past few years, the express mail businesses had grown extremely fast due to the ability to provide and fulfill overnight shipping accompanied by next–morning delivery services for both individuals and businesses customers. By 1996, this segment of the expedited shipment delivery had grown to a $16–17 billion dollar industry business in the US alone. The evolution of the express mail industry had become a quick on–time shipping and delivery of packages. The service had become effective, reliable, and prompt, which most of the top companies could deliver on these guaranteed promises 96–99% of the time. But, delivery services were only a portion of the services being offered to their customers. Carriers had mastered information management that they shared with their customers. Customers were now able to fill out labels, track the route of their package, and assisted in billing using both via carrier provided software or the Internet. In addition there was an increase in the amount of shipping requirements (increased by 20% in ten years). Logically, the industry grew in order to meet the increased customer demand. This also increased the ... Get more on HelpWriting.net ...
  • 34. Airborne Express Harvard Business case Essay ______________________________________________________________________________ Executive Summary: Airborne Express the current underdog in the express mail business has been able to compete with market leaders due to innovation and optimization strategy. The company built on cutting cost and emphasizing reliability now faces pressure from the leaders UPS and FedEx to change their pricing strategy. This change from standard rate pricing to distance–based pricing puts Airborne in a dilemma in which they must choose to match the competition which will make them lose what sets them apart in the market or stay with the current strategy. Changing will increase their flexibility and could open them up to new consumers while staying the same ... Show more content on Helpwriting.net ... Such new moves by both "gorillas" like companies may sweep the corners of the market described by some industry analysts. For years, the industry set the prices without consideration of distance, which means, a same sized letter from New York to New Jersey has the same cost as if the letter is shipped to California from New York. In 1996, UPS officially moved to distance–based pricing, and Federal Express followed same action in 1997. There is no denying that what actions Airborne take is significant affecting the development of the company, while facing this big change in industry. Section 2: The problem/Opportunity: Airborne Express has long differentiated itself in the market by structuring itself as a big business only carrier. They have specialized in large unit deliveries through metropolitan areas. Everything they do is aimed to optimize the delivery process and slash cost where ever possible. However, Airborne is now faced with a huge decision. They must decide whether to step away from their differentiation strategy to match the new pricing tactics of the market UPS and FedEx or to continue the old norm of delivery pricing. The new distance–based pricing strategy threatens Airborne's consistent strategy to cut prices. Clients will seek to ship packages at the lowest cost. The short distance deliveries will be ruled by UPS and FedEx since they are the once who are ... Get more on HelpWriting.net ...
  • 35. Fedex, An International Express Shipping Company Page 1 Federal Express, or now known as FedEx, is an international express shipping company that ships anything from envelopes and small packages to large freight. It was the brain child of college student Fredrick Smith, when in 1965 at Yale a professor assigned the class to invent an industry. At that time the only option companies had was to utilized passenger routes to ship packages, which was not very efficient for time sensitive deliveries. Six years later after Smith left the military he bought a small company and experienced how difficult it was to get supplies delivered within a couple of days. Remembering the paper he had written in college, Smith founded Federal Express in 1973. Starting with 14 small planes today it has grown into the world's largest al–cargo air fleet. By 1980 FedEx was way ahead of the competition and the company was growing by 40 percent per year with 1 billion in revenue. Through many international acquisitions and mergers they have grown internationally and now delivery to over 220 countries. As the demand for express freight shipments increased so did the need to ship and receive documents overnight. The overnight letter service was introduced by FedEx in 1981 and is now a part of standard business practices for most companies in America and the world. Many companies have multiple overnight deliveries and pickups throughout the day. FedEx saw the future potential of overnight letter, package and freight deliveries and started to ... Get more on HelpWriting.net ...
  • 36. Airborne Case Study Industry Analysis In 1996, "Businesses and individuals spent $16–17 billion on expedited shipments within the United States" (1). Since then, shipment volumes have only risen, at a rate of "15–20% per year for the past decade" (2). Companies in the industry provide an express delivery mail service; however, services are not limited to physical delivery. In addition, companies provide tracking and warehousing services, as well as shipment–related logistics consulting. The market is dominated by three main competitors: FedEx, UPS, and Airborne Express. Together, these three companies hold upwards of 85% of the market share. Using Porter's five–force analysis, we can identify the illicit reasons behind the relative attractiveness of the ... Show more content on Helpwriting.net ... Bargaining Power of Suppliers Labor unions are a unique source of supplier power to the express mail industry and have the power to generate decreases in profitability. In 1997, an employee strike at UPS cost the company $700 million in lost revenue, a hurt reputation, and 15% increase in full–time employee wages. Suppliers of raw components/materials (fuel, trucks, airplanes, etc) are large distribution companies or airline carriers. There is a relatively powerless relationship between players in the express mail service industry and their suppliers. Neither side pulls too hard on the other, but in some cases, the players can negotiate volume or exclusivity contracts with suppliers to receive discounts. Intensity of Competitive Rivalry The express mail industry is not diverse. FedEx and UPS alone hold over 70% of the industry market share, leaving the third primary competitor, Airborne Express, with roughly 15% of market share. The majority of the remaining market share belongs to theUnited States Postal service. USPS, however, is not deemed a primary competitor because government regulations prohibit the company from offering quantity–based deals, and the firm lacks proper package identification services. Between UPS, FedEx, and Airborne, though, rivalry is fierce. Because all three of the primary competitors offer identical services, pricing drives competition. Customers, for the most part, are not loyal to an express ... Get more on HelpWriting.net ...
  • 37. Airborne Express Case Study 1 Executive summary Airborne Express is the third largest and fastest growing international air express delivery company in America. It held roughly 16% of the domestic express mail market by 1997. It provides time–sensitive delivery of documents, letters, small packages, and freight in the United States and internationally. The company has several advantages over its rivals, such as it provides delivery services at a lower cost of up to 20% overFedEx 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 (not offered by the US Postal Service). A general acceleration in the ... Show more content on Helpwriting.net ... Competition: the US domestic express mail market is somewhat in an oligopoly status. The competition among the big three is quite fierce. Yet normally FedEx and UPS lead the market. The six other second–tier players do not have any threats to the three major players. The US Postal Service served much of the rest of the market. However, it has a limited popularity just among residential customers because it is inefficient in package tracking and has a much worse on–time delivery record. It has a legal monopoly for first–class letters. But the company is prohibited by law from offering volume discounts to customers. DHL and TNT focus on the international market and trans–border shipments. DHL offer hard–to–reach service since it has hubs in many other different places in the world. It has never invested heavily in domestic market. TNT focuses its effort on Europe. BAX Global focuses on heavy cargo. RPS does not offer overnight delivery. It focused on two–day delivery via a ground network. It is known for its efficient ground transportation and its sophisticated information technology. The traditional express industry is threatened by facsimile and electronic mails, which have zero cost. Competition between FedEx and UPS has caused a lower price and more innovations. The industry is quite consolidated and has a very high barrier to ... Get more on HelpWriting.net ...
  • 38. United Parcel Services Mission Statement Organizational Setting– UNITED PARCEL SERVICE Company Mission: The United States Parcel Services was founded in 1907. The company was created as an American Messenger Company. The first responsibilities of employees of the UPS ran walked by foot or rode a bike in order to make deliveries. In 1913 UPS teamed up with a competitor company and invested in their first delivery truck. While teaming up with their competitor, the decided to focus on delivering packages to stores and changed their name of business to Merchants Parcel Delivery. The United States Parcel Service name was first used in 1925. (United Parcel Service of America, 2018). In 2013 UPS released a mission statement, "What we seek to achieve: grow our global business by serving the logistics needs of customers, offering excellence and value in all that we do. Maintain a financially strong company with broad employee ownership that provides a long term competitive return to our share owners (United Parcel Service of America, 2018)." ... Show more content on Helpwriting.net ... Popular services and products that UPS offers include printing, mailbox services, and packaging and shipping services. UPS is known to be the world's largest package delivery business. UPS' intended customer market has reached world–wide and according to their mission statement, UPS strives to see growth globally (United Parcel Service of America, 2018). UPS and Fed–EX are two top competitors in the packaging and delivering industry. However, UPS has advantages over Fed–Ex due to the international delivery and supply chain group of UPS. UPS has done an excellent job of making it nearly impossible for any new competitor to enter into the packaging and delivery industry. (United Parcel Service of America, ... Get more on HelpWriting.net ...
  • 39. Company Weaknesses And Resource Deficiencies COMPANY WEAKNESSES AND RESOURCE DEFICIENCIES Rising Prices: FedEx prices are higher as compared to their competitors which can be a potential weakness if their customers do not perceive a difference between FedEx and its competitors. Labor Disputes with Pilots: The FedEx Pilots Association is formed by the FedEx pilots. The motive of this global body was to bring about changes in the pilots' salaries, retirement benefits and also restricting outsourcing of foreign flights. The pilots can share their views and feelings through a website. There was a case in 1998 where the pilots were about to go on a strike which enabled FedEx and FedEx Pilots Association to develop an agreement that was posted on the website. However, this agreement did not satisfy the expectations of the pilots and thus, this is an internal weakness for Federal Express keeping in mind the fact that it has about 3500 employees in its kitty. FedEx would suffer and force other competitors to take over if its pilots would go on strike and also incur heavy losses. There was a case in 1997 where the UPS employees went on strike forcing FedEx to take an extra 800,000 shipments in a day. Running Subsidiaries Separately: FedEx has made a conscious effort to keep their companies separate to allow a much more organized and structured working environment. In the 1998 annual report of FedEx, CEO Frederick Smith states, "Simply layering the unique resource and operating requirements of a time–definite, global, ... Get more on HelpWriting.net ...
  • 40. Ups: Case Analysis Current Situation The overall performance of United Parcel Service (UPS) during the past year was good. The company 's ROI for the last five year is 14.27 while the industry average is only 12.70. UPS is the market share leader in the express delivery market with a 53% share of the market, and 50% in the ground shipping industry (Lazich, 2007). Based on its Net Profit Margin, Return on Assets, and Earnings per Share the company 's profitability is strong. Overall, UPS performed well in 2006. UPS 's current mission is a clear and succinct representation of their purpose (See Appendix A). Their businesses include ground package delivery, overnight package delivery, freight forwarding, logistics, postal and business services.... Show more content on Helpwriting.net ... UPS has strong presence in Europe and is further expanding its facilities across this region. For instance, UPS opened a European air hub in 2006, located at the Cologne/Bonn Airport, and has the capacity to sort 110,000 packages per hour. Also in October 2006, the company reached an agreement with Poste Italiane to carry the Italian postal service 's international express shipments and started its operations in November 2006 for the 14,000 post offices. Poste Italiane operates across the country. In addition, UPS also plans to utilize the Poste Italiane network for its own pickup and final delivery in certain extended areas of Italy. It could leverage its existing reach to benefit from the growth of the express and delivery markets in Central and Southern Europe. Online shopping According to the US Commerce Department, online shopping rose by 20% in 2006, extending a seven–year trend of double–digit growth. The US online retail sales are predicted to reach $130 billion by 2006, up from $34 billion in 2001. By 2008, US online retail sales are forecasted to reach $271 billion. UPS is a leading facilitator of global e–commerce. The company provides a portfolio of solutions that streamline the customer 's shipment processing and integrate transportation information into the retailer 's business applications. With the expected growth rate of ... Get more on HelpWriting.net ...
  • 41. Five Forces Analysis-US Express Mail Industry Essay Question 1 asked to complete a five forces analysis of the US Express Mail Industry. A five forces analysis is done to rate the attractiveness of an industry. Threat of new entry is low because the barriers to entry are high. Newcomers to the industry would require an enormous amount of up front capital to set up the distribution networks and infrastructure, such as establishing hubs, and acquiring aircraft and a large amount of ground transportation vehicles (vans, trucks, ect). Economies of scale are significant and would deter new firms from entering because initial sales volumes would be low do to the fact that existing brands already have strong brand identification, and there are no cost advantages to entering, like government ... Show more content on Helpwriting.net ... The airports and the aircraft suppliers aren't only relying on the express mail industry, so that also gives those suppliers more power to charge what they want (landing fees, cost of planes). Ground transportation vehicles is the only input that would allow for more bargaining power since there are numerous alternatives available, there is more room for the industry players to negotiate price. The availability of substitutes is medium mainly because there aren't a large number of substitutes out there for express mail outside of the industry. Most next day deliveries are business documents, parcels, letters, ect, not typically cargo. So substitutes could include email and faxes, both are faster and cheaper than express mailing. Depending on the nature of the business, video conferencing or the old fashion telephone could be used. If the parcel is going somewhere local maybe could use bike messengers, or just hand deliver. There are also the second tier players, like RPS, DHL and TNT, while they are still in the delivery industry; they tend to specialize in areas other than express mail. With RPS, it is second day service at 40–50% less, and a business that does a large amount of overseas or international express shipments may want to substitute with DHL or TNT, who specialize and differentiate themselves in the international market. The Intensity of ... Get more on HelpWriting.net ...
  • 42. Fedex Analysis Kim VanDeven FedEx Corporation Case Summary: Federal Express is a delivery service company, founded by Frederick W. Smith in 1973. While at Yale, he had a vision of an overnight delivery service designed to transport business packages globally. He found investors willing to contribute $90 million dollars, making it the largest company ever funded by a venture capital. Smith turned FedEx into a global shipping power. Key Service Marketing Issues: Customers/ Services: FedEx has a strong adherence to its People–Service–Profit philosophy; it provides reliable, competitive, global air–ground transportation of goods and documents that require quick delivery. The key position is to influence the customer's perception of ... Show more content on Helpwriting.net ... They received the Malcolm Baldrige National Quality Awardin the service category in 1990. They have developed their own quality system to match their customer's standards. Innovation: FedEx maintains about 670 aircrafts and more than 43,000 vehicles using them differently than any other company. Technology and Communication: FedEx continues to search for new technology allowing a budget of $1 billion a year for information technology. They have a highly controlled distribution system with constant information about the status of shipments allowing customers to track them. Weakness: Cost of Fuel: FedEx is dependent on gasoline to run its business. Their stock is very sensitive to changes in crude oil. If there is a weakness in the stock market we will see the company's stock drop. When the cost to run your business goes up it hurts the company's bottom line. Slowdown Economy: A slowdown in the market can cause reduced demand of their services. They are feeling the impact in the domestic area of their service at the moment. Poor performance of Kinko's: They have recorded 2% lower revenues and if this keeps up it will impact the company's financial performance negatively. Opportunities: Expansion Globally: FedEx can continue to grow globally especially in the Asian Markets. Expansion of e–commerce: They already have a presence with online shipping but should keep finding Internet companies to
  • 43. ... Get more on HelpWriting.net ...
  • 44. Fedex Corporation Is The Parent Company Of Operation... FedEx Corporation provides customers and businesses worldwide with a broad portfolio of transportation, e–commerce, and business services. FedEx was founded in 1971. Headquarters is currently located in Memphis, Tennessee. There are currently more than 340,000 employees working throughout FedEx Corporation. FedEx Corporation is the parent company of operation divisions, currently known as FedEx Express, FedEx Ground, FedEx Office, FedEx Freight, and FedEx Services. Even though all of the listed companies are managed cooperatively under the FedEx brand name, they operate independently from one another. Company Overview History In 1965, Yale University undergraduate Fredrick W. Smith wrote a term paper that laid out the logistical challenges facing pioneering firms in the information technology industry. Smith explained in his term paper how companies using airfreight shippers relied on passenger route systems, but those didn't make since. He proposed a system specifically designed to accommodate time sensitive shipments. His teacher didn't find anything special about his term paper, so he received just an average grade. In August 1971, Smith bought controlling interest in Arkansas Aviation Sales located in Little Rock, Arkansas. While operating his new firm, he saw firsthand how difficult it was to get packages and other airfreight delivered within one or two days. It was then when he set out to find a better way; which was when Federal Express was born. Smith named the ... Get more on HelpWriting.net ...
  • 45. Fedex Corporation ( Fedex ) COMPANY OVERVIEW FedEx Corporation (FedEx) is a transportation service that offers overnight mailing services, freight services, logistics solutions, and business services. The company is one of the largest express transportation companies, delivering small packages nationwide and worldwide. It mostly operates in the US. FedEx has its main headquarters in Memphis, Tennessee and has currently employed approximately 300,000 employees in FY2014. The company–recorded revenues of $45,567 million during the financial year ended May 2014 (FY2014), an increase of 2.9% over FY2013.The operating profit the company made was $3,446 million in FY2014, an increase of 35.1% over FY2013. The net profit the company made was $2,097 million in FY2014, an increase of 34.3% over FY2013. Key Facts FedEx Express is one of the world 's largest express transportation companies in the world, providing fast and reliable delivery to every U.S. address and to more than 220 countries and territories. FedEx Express uses a global air–and–ground network to ensure a speedy delivery of time–sensitive shipments, usually in one to two business days with the delivery time guaranteed. This is what the consumers want fast and secure services at a reasonable cost. SWOT ANALYSIS FedEx is a global transportation service provider that offers overnight delivery services, freight services, logistics solutions, and business support services. The company 's strong brand image not only ensures its ability ... Get more on HelpWriting.net ...