Preview

Competitiveness Express Delivery

Powerful Essays
Open Document
Open Document
8368 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Competitiveness Express Delivery
Transportation Research Part E 45 (2009) 321–334

Contents lists available at ScienceDirect

Transportation Research Part E journal homepage: www.elsevier.com/locate/tre

Evaluating competitiveness of air cargo express services
Yonghwa Park a,*, Jung Kyu Choi b, Anming Zhang c a b c Asia Pacific School of Logistics, Inha University, Incheon 402-751, Republic of Korea
Department of Aviation, The University of New South Wales, Sydney, Australia
Sauder School of Business, University of British Columbia, Canada

a r t i c l e

i n f o

Keywords:
Air cargo express services
Integrators
Competitiveness
Service factors
Analytic Hierarchy Process (AHP)
Importance–performance analysis

a b s t r a c t
This paper explores the relative importance of factors that influence the adoption of air express delivery service, and evaluates the competitiveness of air cargo express carriers in the Korean market. Our AHP analysis shows that accuracy and promptness are the two most influential factors to competitiveness, and that DHL is most competitive in the
Korean market, followed by FedEx, TNT, EMS, and UPS. We further examine both the factor importance and carriers’ competitiveness from the perspective of service users. While accuracy and promptness remain as important factors, price becomes the most important factor. Finally, an importance–performance analysis for each carrier is conduced, and managerial implications are drawn.
Ó 2008 Elsevier Ltd. All rights reserved.

1. Introduction
In the contemporary globalizing economy where the small quantity production of various components and products and the associated frequent delivery are typical, economy of time has assumed immense importance for business. It is no exaggeration to say that saving time in a company’s supply chain is a key to its success in the market place. Furthermore, a growing community of e-commerce retailers have begun to rely on strategically located ‘‘fulfillment centers” to enable speedy and economical delivery of



References: Cha, H.S., 1995. A study on the evaluation of air service quality. Unpublished Master Thesis, Kunggi University in Korea (in Korean). Chen, F.-Y., Chang, Y.-H., 2005. Examining airline service quality from a process perspective. Journal of Air Transport Management 11 (2), 79–87. Chu, S., Leung, L.C., Hui, Y.V., Cheung, W., 2004. Fourth Party Cyber Logistics for Air Cargo. Kluwer Academic Publishers, Boston. Good, W., Wilson, M., McWhirter, B., 1985. Passenger preference for airline fare plans. Journal of Travel Research 23, 17–22. Hamilton, S., 1997. E-commerce for the 21st century. IEEE Computer 30 (5), 44–47. Hong, S.-J., Jun, I.-S., 2006. An evaluation of the service quality priorities of air cargo service providers and customers. World Review of Intermodal Transportation Research 1, 55–68. Jeon, S.Y., 2001. A study on the development of international express parcel delivery services in Korea. Unpublished Master Thesis, Dankuk University (in Korean). Jung, S.Y., 1992. Strategies for development of international express delivery services. Logistics Information, Hanjin Logistics Institute 92 (10) (in Korean). Jung, S.Y., 1993. Analysis of international express parcel delivery services. Logistics Information, Hanjin Logistics Institute 93 (4) (in Korean). Kim, K.N., 1998. An analysis of the competitiveness for the Korean express carriers. Unpublished Ph.D. Thesis, Dongguk University (in Korean). Kim, K.S., 1996. An analysis of the preferences of international airline passengers for airlines. Journal of Tourism Systems and Quality Management 2 (3, 4), 187–210. Lee, S.G., 1996. Improving the competitiveness of express cargo services. Paper presented in a Seminar at the Korea Logistics Research Association (in Korean). Martilla, J.A., James, J.C., 1977. Importance–performance analysis. Journal of Marketing 41, 7779. Melbin, J.E., 1997. The need for speed. Distribution 96 (8), 58–84. Ostrowski, P.L., O’Brien, V., Gordon, G.L., 1993. Service quality and customer royalty in the commercial airline industry. Journal of Travel Research 31, 16–24. Parasuraman, A., Zeithaml, V.A., Berry, L.L., 1985. A conceptual model of service quality and its implications for future research. Journal of Marketing 49, 41– 50. Park, J.Y., 1999. An analysis for customer royalty influenced by air carrier’s service quality and customer satisfaction. Unpublished Ph.D. Thesis, Keimyung University (in Korean). Satty, T.L., 1980. The Analytic Hierarchy Process. McGraw-Hill, New York. Satty, T.L., Vargas, L., 2001. Models, Methods, Concepts and Applications of the Analytic Hierarchy Process. Kluwer Academic Publishers, London. Swan, J.E., Trawick, I.F., Silva, D.W., 1985. How industrial salespeople gain customer trust. Industrial Marketing Management 14 (3), 203–211. White, C.A., 1994. The attributes of customer service in the airline industry. Unpublished Ph.D. Dissertation, United States International University, San Diego.

You May Also Find These Documents Helpful

  • Good Essays

    Fedex marketing Case

    • 1341 Words
    • 4 Pages

    Looking at the past data, it was mainly the executives or their secretaries who utilized CP rather than shipping managers of the companies. Due to the nature of their needs, they demand fast overnight deliveries to their client instead of the usual routine by going through the shipping department which will slow them down. Focusing on the demand for special-handling of packages, the review of the potential market was almost 870,000 pieces a day. It is a huge market of approximately 670 times the size of the current average daily CP volume of around 1,300 and is still expecting to grow at 20% each year.…

    • 1341 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Apply Porter to Easy Jet

    • 599 Words
    • 3 Pages

    In the airline business, particularly on long haul routes, price is only one competitive factor – quality of service and added value both differentiate the products strongly.…

    • 599 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Fedex vs Ups

    • 4116 Words
    • 17 Pages

    The air express segment was a $25bn portion of the US package-delivert industry, and was concentrated in letters and packages, overnight and deferred, and air or air and ground. Virtually all FedEx business activities were in the air express segment of the package delivery industry, only 22% of UPS’s revenues were derived from its next day air business. FedEx and UPS’s competition for the dominance of the $25bn domestic air express delivery market foreshadowed in an unusually challenging future…

    • 4116 Words
    • 17 Pages
    Powerful Essays
  • Good Essays

    Westjet has kept focusing on niche markets and expanding slowly and carefully. Instead of providing luxury airplanes, Westjet pays attention to customer relationships. It uses customer experience system to collect information from every passenger’s experience in order to evaluate its current performance and to seek the rooms for further improvements. (ResponseTek) However, it is not an easy job to change the stereotype that the public generally believes low price service often comes with low quality. Therefore, it becomes the major weakness of Westjet when it plans to expand its international routes and attracts more business travelers. Making balance between the expansion and continued provide low price flight will be the main issues of Westjet in the…

    • 496 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Organizational Behaviour

    • 3267 Words
    • 10 Pages

    Thanks to consistent growth of economy and multidomestic exchange, the logistics industry has been witnessing buoyant growth and will continue this growth momentum in years to come (Rajaram, 2011). The demand for logistics services in China has been largely fueled by consistent growth of economy, and key industries such as automotive, engineering, pharmaceuticals and food processing. Similarly, individuals’ demand for logistics service has been also dramatically increased because of the convenience provided by modern technology such as online shopping. As a result, express companies were founded and promptly expanded to fulfill the customers’ demands for a rapid, efficient and secure shipping service. In China, there are currently more than 1,000 registered express companies operating and offering logistics services to either individuals or organizations. However, it is true that various problems are existing within those companies, which lead to significantly negative impacts on organizational effectiveness and relationship with clients. This report will focus on one representative express company in China, which is called Shentong Express and investigate the company’s problems and underlying causes behind them. This report will also recommend solutions that address the symptoms and causes to improve the organization’s performance and productivity.…

    • 3267 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Success for commercial airline companies is determined by their profit and their profitability is increased by making the most of satisfying their customers and retaining loyalty. Survey results in 2007 indicated that “airlines have work to do to improving customer satisfaction,” (AP, 2007). Delta Airlines ranked among the lowest and Southwest Airlines ranked among the highest in the survey areas of overall satisfaction, intentions to be a repeat customer, perceptions in expectations, value and quality in response to questions related to approval in a variety of industries including airlines. In order to gauge the level of customer contentment, whether or not it has improved for these two airline companies and how customer satisfaction differs between Southwest Airlines and Delta Airlines, a research project was conducted to find out how the customers now react to the respective airline companies and how well the airlines are trying to satisfy customers after making promises to do better.…

    • 3475 Words
    • 14 Pages
    Powerful Essays
  • Powerful Essays

    Graded Unit Planning Part

    • 2313 Words
    • 10 Pages

    An investigation into the impact of customer service of low cost airlines on consumer choices…

    • 2313 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    References: Blanchard, D. (2009, July). The Dos and Don 'ts of Third-Party Logistics. Industry Week, 258(7), 43-44. Retrieved February 14, 2010, from ABI/INFORM Global. (Document ID: 1780053281).…

    • 2084 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    “A Tale of Two Airlines in The Network Age” case description of Professor McPherson’s extremely different flying experience with the two Airlines lays out the facts of what matters the most in such a difficult situation. Airlines are constantly facing unexpected delays caused by weather conditions. How to improve customer service quality in those occasions has become a challenge to airline management and should be dealt with great attention. The lists of factors below compare the difference of customer service provided by the two airlines from different aspects.…

    • 418 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Arsenault, S. (2009) Airline loyalty: a new prospective. UNISYS. Retrieved 05 May 2012 from www.unisys.com/transportation/insights/insights_compendium/WO-Airline_Loyalty.pdf…

    • 1661 Words
    • 7 Pages
    Best Essays
  • Powerful Essays

    U.S. Department of Transportation (1990±1994) Air Travel Consumer Report, O ce of Consumer A€airs, Washington,…

    • 5591 Words
    • 23 Pages
    Powerful Essays
  • Powerful Essays

    ✓ Ahmed, I., Nawaz, M., Usman, A., Shaukat, M., Ahmad, N., and Iqbal, H. (2010). Impact of Service Quality on Customers ' Satisfaction…

    • 3713 Words
    • 15 Pages
    Powerful Essays
  • Good Essays

    Fly Away Airlines

    • 966 Words
    • 4 Pages

    1. The two measurements are an interesting insight into the mind of the consumer and the researcher torn between two types of different approaches. Looking at the results there are some drastic differences in the position of companies in the rankings. For example, Southwest Airlines went from second to last in the 19th spot all the way to second place. There are some major discrepancies for a leap like that to occur. One of the ways these approaches are similar is they are both looking at many of the same major factors; being on time, customer service, price, number of routes. The difference comes in how they measure that. The weighted average approach uses public records and real data to organize and rank the airlines in the different categories. The consumer survey approach uses people’s perception or opinion of how well each airline performs in the different categories.…

    • 966 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Lisa M. Ellram (International Journal of Physical Distribution & Logistics Management, Vol. 25 No. 8, 1995, pp. 4-23.)…

    • 950 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Korean Air

    • 1717 Words
    • 7 Pages

    Choi, K., 2007, 'Strategies which made Korean Air Cargo the Leading Cargo Carrier Internationally ', available at: http://www.docstoc.com/docs/20905066/Strategies-which-Made-Korean-Air-Cargo-the-Leading-Cargo…

    • 1717 Words
    • 7 Pages
    Better Essays