Federal Express main products are delivering packages to widespread locations within a short time. In this case study, we would focus our discussion on its most profitable services, i.e. Priority One, Standard Air Service, and Courier Pak (Table 1).
Federal Express Product
FedEx specializes in guaranteed overnight delivery of high-priority packages, documents, and heavy freight.
How does Courier Pak fit in Federal Express?
For services users
Courier Pak is a guarantee overnight delivery service, and is expected to be delivered to anywhere within the FedEx system for the cost of $12.5 with the weight up to 2 pounds regardless the distance of the destination. Courier Pak's waterproof, tearproof envelope offered a unique physical shipping method to the customers, and provided protection for the documents & accommodates their security need.
For Federal Express
As mentioned in the case, there is a significant market potential (almost 870000 pieces per day) for documents and small package mailing. An analysis shows that in FEC stations, the volume for Courier Pak is 30% more than Priority One. That means Courier Pak market has a growing potential. In addition, it is found that the variable cost of it is the lowest among all other overnight delivery services provided by Federal Express (Table. 2). That means Courier Pak may be a more profitable product.
Typical users of airfreight were producers of time-sensitive, high priced, finished goods such as valuable architecture and confidential documents. But in 1976, a spring survey shows that only 24% customers used both Courier Pak and Priority One services while less than 1% of them used only Courier Pak. Moreover, the cap...
... middle of paper ...
...s. Experiments can be shown to the potential customers that important documents using Courier Pak is far safer than using other types of paper bags. In the advertisement, FedEx can point out that the customers need to spend only a specific price for the package weights up to 2 pounds, the packages can be delivered to anywhere within FedEx¡¦s operational territory by overnight Courier Pak service. Emphasized on the speed, reliability and security Courier Pak provided compared with their competitors. And the people ¡V oriented philosophy FedEx applied, which they put this as their core business while the other treat it as their sideline business.
Base on the product market fit, Courier Pak completely fit the company, from the environmental, company, cost and competitive standpoint. So we think that FedEx should devote special emphasize to Courier Pak.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- ... This means that as early as its first few years in the industry, Federal Express has been striving to get ahead of its then current and future competitors in terms of at least three of the four blocks of competitive advantage. However, this does not mean that FedEx completely lacks the drive, the initiative, or the ability to offer new and innovative delivery services to its clients because in its over thirty years in the business, FedEx has actually created a wide variety of delivery services, although their main objective in creating them most of the time was to get ahead of their competitors such as the UPS, and the USPS, in terms of market share.... [tags: business strategies and analysis]
1730 words (4.9 pages)
- Every day consumers are faced with hundreds and even thousands of advertisements. One can simply sit in just about any public area and spot a multitude of them without even moving their head. With so many advertisements fighting to make themselves visible to the consumers, it is extremely difficult to be distinctive. It is even more complex to make an advertisement memorable and bring the consumer to make the coveted purchase. Because of this, many advertisers and marketers sometimes push the envelope in an effort to stand out from the crowd.... [tags: fraudulent claims, unfair ad]
1290 words (3.7 pages)
- Access the Bureau of Economic Analysis Website: http://www.bea.gov/national/index.htm#gdp Study real GDP growth rates and their components for the four most recent quarters and complete the following: 1. Identify and explain the components that comprise GDP and their relative contributions to GDP. 3 points 2. Describe the recent rate of real GDP growth. 3 points 3. Identify and analyze the factors that have driven growth (or the lack of growth) in real GDP. 8 points 4. Identify any recent events or changes that have caused an increase in GDP but not a correlating increase in our nation 's standard of living.... [tags: Gross domestic product, Economics, Macroeconomics]
1374 words (3.9 pages)
- A Case Analysis of Calyx and Corolla This analysis focuses on the case study of Calyx & Corolla, a mail order flower company. Calyx & Corolla is a relatively new company that utilizes a different distribution channel than conventional companies for fresh flowers. Calyx & Corolla mails flowers direct from the growers to the customers via Federal Express and eliminates the middleman (Appendix A). This permits Calyx & Corolla to provide fresher, longer-lasting flowers to consumers. The management of Calyx & Corolla is contemplating a change in their long-term business strategy as they examine their ability to compete with more traditional outlets such as retail flower shops and wire services l... [tags: Flower Companies Business Analysis]
4467 words (12.8 pages)
- - Lynn should structure here presentation following the formula method. This is also known as a persuasive presentation. The book defined this as “A presentation by which the salesperson follows a general outline that allows more flexibility and tries to determine prospect needs” (pg 281). I think that this would be the most fitting because of the lack of success McBath products have had with the chief purchasing agent of Federale, Mary Bruce. The case study presented the strong support and quality Lynn had in the product that she was attempting to sell.... [tags: Product Analysis ]
1124 words (3.2 pages)
- Marketing Plan Foundation: FedEx Many people know that Federal Express (FedEx) is a global courier and package delivery company. According to their site information, “FedEx Corporation provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services.”(About FedEx, 2012) This indicates they provide a much broader range of services than just delivering packages. FedEx has grown into a worldwide provider of many different forms of transportation and business services.... [tags: package delivery company, courier]
1636 words (4.7 pages)
- Introduction: This paper is meant to conduct an environmental scan of both the general and specific environment for American Express. Along with the examination of environments, an analysis of those environments and possible opportunities and threats will be further discussed. When analyzing the general environment of American Express, it will be covered in five sectors, which include demographics, technology, social-culture, economic and political-legal. "The competitive environment for AmEx is very challenging" (Associated Press, 2015); that is, there is a great deal of pressure on American Express.... [tags: Credit card, MasterCard, American Express, Credit]
1200 words (3.4 pages)
- For the purpose of our paper, we will be discussing FedEx Corporation. Federal Express was originally founded in 1971 by Frederick W. Smith, a Yale University undergraduate. The idea for such a company came to Smith while writing a term paper. He saw the logistical challenges that many firms faced in terms of delivering urgent shipments. Therefore, his idea started a new industry, one in which time-sensitive shipments were accommodated to be delivered in a timely fashioned. His idea came to fruition after he first handly saw the challenges of getting packages deliver in a day or two.... [tags: FedEx, United Parcel Service, Frederick W. Smith]
737 words (2.1 pages)
- Introduction Federal Express is an express transportation company, founded in 1973 by Frederick W. Smith. During his college years, he recognized that the United States was becoming a service-oriented economy and needed a reliable, overnight delivery service company. In 1965, as a undergraduate at Yale University, Smith wrote a term paper about the passenger route systems used by most airfreight shippers, which he viewed as economically inadequate. He wrote of the need for shippers to have a system designed specifically for airfreight that could accommodate time-sensitive shipments such as medicines, computer parts and electronics.... [tags: Business Case Study]
1958 words (5.6 pages)
- In 1965, Yale University undergraduate Frederick W. Smith wrote a term paper about the passenger route systems used by most airfreight shippers. Mr. Smith viewed them as economically inadequate. Smith’s paper focused on the need for shippers to have a system designed specifically for airfreight that could accommodate time-sensitive shipments such as medicines, computer parts and electronics. After spending a short period in the military, Smith purchased controlling interest in Arkansas Aviation Sales located in Little Rock, AR in August 1971.... [tags: History, Frederick W. Smith]
1963 words (5.6 pages)