GEB 3376
June 1, 2015
Case Study – Luggage Concierge
1. What reason to market globally (as noted in the chapter) does the Luggage Concierge and UPS alliance serve? Explain
There are many reasons for the Luggage Concierge and UPS alliance to market globally, but the primary reason is to bring in more revenue. Global marketing benefits both companies because there are many individuals who lost their luggage on planes and trains so they prefer to ship it instead. This alliance serves well for its customers and the economy thus being a service that anybody can use and provides real time tracking time.
2. Luggage Concierge has created a number of strategic alliances with domestic and global partners.
A) What is the rationale for Luggage Concierge’s decision to create alliances rather than expanding on its own?
It was a great decision for Luggage Concierge to create alliances because with their services, you’ll need business partners to be real successful. Luggage Concierge offers services for individuals who’s going on cruises, business trips, or just travelling.
B) Identify three of these partnerships and the value of global alliance for each party.
UPS – customers can have their luggage delivered to most countries within 8 days
MasterCard/American Express – customers can pay with their credit card and possibly receive reward points
Crystal Cruises – customers get 20% discount on luggage shipments to and from cruise ship
3. How do customers benefit from the alliance between UPS International and Luggage Concierge?
This partnership provides customers to have their luggage shipped to majority of the countries within 8 business days. Also, customers can track their luggage.
4. What are some of the challenges that Luggage Concierge would have likely faced in becoming a global marketer that UPS can handle?
Luggage Concierge would most likely face shipping internationally and providing accurate tracking information. Those challenges UPS can handle