Essay about Federal Express Product Analysis

Essay about Federal Express Product Analysis

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Introduction
Federal Express main products are delivering packages to widespread locations within a short time. In this case study, we would focus our discussion on its most profitable services, i.e. Priority One, Standard Air Service, and Courier Pak (Table 1).

Federal Express Product
FedEx specializes in guaranteed overnight delivery of high-priority packages, documents, and heavy freight.

How does Courier Pak fit in Federal Express?
For services users
Courier Pak is a guarantee overnight delivery service, and is expected to be delivered to anywhere within the FedEx system for the cost of $12.5 with the weight up to 2 pounds regardless the distance of the destination. Courier Pak's waterproof, tearproof envelope offered a unique physical shipping method to the customers, and provided protection for the documents & accommodates their security need.

For Federal Express
As mentioned in the case, there is a significant market potential (almost 870000 pieces per day) for documents and small package mailing. An analysis shows that in FEC stations, the volume for Courier Pak is 30% more than Priority One. That means Courier Pak market has a growing potential. In addition, it is found that the variable cost of it is the lowest among all other overnight delivery services provided by Federal Express (Table. 2). That means Courier Pak may be a more profitable product.

Our analysis
Current situation
Typical users of airfreight were producers of time-sensitive, high priced, finished goods such as valuable architecture and confidential documents. But in 1976, a spring survey shows that only 24% customers used both Courier Pak and Priority One services while less than 1% of them used only Courier Pak. Moreover, the cap...


... middle of paper ...


...s. Experiments can be shown to the potential customers that important documents using Courier Pak is far safer than using other types of paper bags. In the advertisement, FedEx can point out that the customers need to spend only a specific price for the package weights up to 2 pounds, the packages can be delivered to anywhere within FedEx¡¦s operational territory by overnight Courier Pak service. Emphasized on the speed, reliability and security Courier Pak provided compared with their competitors. And the people ¡V oriented philosophy FedEx applied, which they put this as their core business while the other treat it as their sideline business.

Conclusion
Base on the product market fit, Courier Pak completely fit the company, from the environmental, company, cost and competitive standpoint. So we think that FedEx should devote special emphasize to Courier Pak.

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