Federal Express (B) Case Study

Q: Do you think Courier Pak is a satisfactory belong 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 line of merchandise environment of the mid mid-seventies airfreight industry played most directly into the relative strengths of a small- software package air service like FEC. As stated in the case study, Bulk mathematical products and goodness goods were rarely sent by air. Indeed, most air shipments were quite small. This type of environment, combined with FECs unique flight routes and reliable pick-up/ rake 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 package delivery (price based on cargo down and distance. bonny price in 1976=$23.56), which guaranteed overnight delivery anywhere in the FEC system, and on the separate 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 mulish price of $12.50. Rounding out FECs product stemma you had regular tune wait on (price based on weight and distance.

honest price in 1976=$12.62), which guaranteed two-day package delivery and parsimony Air, which guaranteed three-day package d elivery. From a cost perspective, the size ! of the Courier Pak as nearly as the manner in which consumers underutilized this product in terms 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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