Professional Documents
Culture Documents
IPSITA BEHERA, MOHIT GUPTA, NEHA CHAHAL & SHARAD KUMAR SHUKLA opasdfghjklzxcvbnmqwertyuiopasdfg hjklzxcvbnmqwertyuiopasdfghjklzxc vbnmqwertyuiopasdfghjklzxcvbnmq wertyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmqwertyuiopasdfg hjklzxcvbnmqwertyuiopasdfghjklzxc vbnmqwertyuiopasdfghjklzxcvbnmq wertyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmqwertyuiopasdfg hjklzxcvbnmrtyuiopasdfghjklzxcvbn mqwertyuiopasdfghjklzxcvbnmqwert yuiopasdfghjklzxcvbnmqwertyuiopas dfghjklzxcvbnmqwertyuiopasdfghjklz xcvbnmqwertyuiopasdfghjklzxcvbnm qwertyuiopasdfghjklzxcvbnmqwerty
GROUP 7
Q How and why has the express mail industry structure evolved in recent years?
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. 1) 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. 2) It is imperative for businesses to facilitate fast information dissemination. Express mails have provided a medium for establishing this. All business and individuals today use this service. 3) Most players use the hub-and-spoke model. Major hubs act as collecting grounds for mail from all over America. The mails are then sorted and then sent off to respective destinations. Priority is given too early-next and next-morning mails 4) The industry is governed by the rules set by UPS and FedEx. This being so because of the magnitude of their operations. There is fierce competition between the 3 big players, however the second -tier six players dont pose any threat to these companies. US Postal one of the second-tier players has a monopoly in first class letters and charges high fee for them.
Q What must Robert Brazier, Airborne's President and COO, do in order to strengthen the company's position?
Airborne should identify the key growth markets in its industry, such as Internet -based logistics, which is essentially the use of Internet technology to coordinate all aspects of freight shipping, from ordering and pick-up to payment and delivery. Airborne should also diversify into business segments other than business customers. This would help it in globalizing its brand. Airborne should think about diversifying its services in various different areas. Airborne should invest more into its international business and should try to widen its reach to new countries.
Federal Express
International and domestic services. Overnight(Morning delivery, afternoon delivery, second day delivery), Small Packages for express delivery Air express mail carrying small packages. Pick up by customers convenience
UPS
International and domestic services. Overnight(Morning delivery, afternoon delivery, second day delivery), Parcel delivery where time is not much of a concern. Common Parcel Carrier
Summary of productmarket positioning Pick-up & delivery (inbound and outbound logistics)
Customer Service
8 hubs in US and 5 international hubs. Aggressive Marketing, large sales force and promotional schemes. Highly automated customer service.
1 national Hub, 5 regional hub No marketing department but spend 80% more than Federal Express. Initially not that good but eventually provided services similar to FedEx.
IT
No layoff policy, cross training employees, quality improvement trainings, freedom of making decisions, incentive pay as per performance,
Procurement
International operations
Airport as hub ,no landing fees, sorting manually done U.S and overseas