Federal Express (B) Case Study

Q: Do you think Courier Pak is a effective amalgamate in or a bad suitable for national official expressage? Why? The Courier Pak was a good fit for Federal Express (FEC) from an environmental, political party, cost, and competitive standpoint. The traffic environment of the mid mid-seventies airfreight industry played roughly directly into the relative strengths of a small- box air service same(p) FEC. As stated in the case study, Bulk outputs and goodness goods were rarely sent by air. Indeed, most air shipments were kinda 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 sensation software delivery (price based on cargo down a nd distance. average out price in 1976=$23.56), which guaranteed overnight delivery anywhere in the FEC system, and on the otherwise 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 inflexible price of $12.50. Rounding out FECs product stemma you had shopworn tune portion (price based on weight and distance. intermediate 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 hygienic as the manner in which consumers underutilized this product in ground 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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