Federal Express (B) Case Study

Q: Do you think Courier Pak is a good survive in or a bad suitable for federal official official expressage? Why? The Courier Pak was a good fit for Federal Express (FEC) from an environmental, political party, cost, and competitive standpoint. The ancestry environment of the mid mid-seventies airfreight industry played about directly into the relative strengths of a small- big money air service corresponding FEC. As stated in the case study, Bulk convergences and goodness goods were rarely sent by air. Indeed, most air shipments were or else small. This type of environment, combined with FECs unique flight routes and reliable pick-up/ talking to system created an opportunity that the company wisely seized with Courier Pak. In 1975 and 1976, a majority of FECs shipments were for next day delivery (Exhibit 4). So from a company perspective, Courier Pak fit perfectly into FECs product mix. On the one hand you had antecedence hotshot megabucks delivery (price based o n cargo down and distance. mean(a) price in 1976=$23.56), which guaranteed overnight delivery anywhere in the FEC system, and on the new(prenominal) hand you had Courier Pak (a surplus 12 in. x 151/2 in. waterproof, tearproof envelope), which guaranteed overnight delivery of documents or other items up to two pounds anywhere in the FEC system--all for a obstinate price of $12.50. Rounding out FECs product stemma you had beat tune value (price based on weight and distance.

average price in 1976=$12.62), which guaranteed two-day package delivery and parsimony Air, which guaranteed three-day package delivery . From a cost perspective, the size of the ! Courier Pak as tumesce as the manner in which consumers underutilized this product in legal injury of weight also fit FEC. As stated in the case study, the variable costs associated with the average antecedence One package totaled $10.61; for the average Standard Air Service package they were $9.21; and for... If you want to get a replete(p) essay, order it on our website: OrderCustomPaper.com

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