in the overnight (e xpress) deliveries segment. Therefore the marketing plan recommends gaining mark et share in that segment by withdrawing market share from FedEx‚ which is the ma rket leader in that segment. Therefore‚ UPS should target companies (such as hos pitals‚ finance companies etc.) and households who are currently using FedEx for urgent freight. In addition‚ UPS should also position themselves in the interna tional shipping market. Therefore‚ they should target global manufacturing
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1) How and why has the structure of the express mail industry evolved in recent years? How have the changes affected the small competitors? How has the rivalry between FedEx and UPS impacted them and the rest of the industry? - The face of shipment industry changed drastically with the proliferation of many services wherein companies offered next afternoon delivery‚ second day services‚ third day deliveries and pricing these options on the basis of delivery time. - Shipping volumes had increased
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The Battle for Value‚ 2004 Fedex Corp vs United Parcel Service‚ Inc. Fedex stock price reaction Loss of profits on the Penney relationship ◦ less able to finance internally UPS gains franchise value on future business with Penney signal to investors of competitive disadvantage Origins and strategic forces of the industry UPS was the dominant firm in the 1970’s Deregulation (airlines‚ trucking) Innovation in information and process technologies Inflation Emphasis
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Leader’s Background Frederick Wallace Smith‚ who is the founder‚ chairman‚ president and chief executive officer in FedEx‚ was born on 11 August 1994 in Marks‚ Mississippi. Fred Smith was born with a congenital birth defect called Calve-Perthes disease which caused him to wear braces and walk with the help of crutches during his youth time. As time passed by‚ he slowly grew out of the disease. At the age of 4 years old‚ he was raised by his mother and uncle after his father past away. He had a great
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CASE STUDY QUESTIONS Chapter 1: Foundations of Information Systems in Business CASE I: 1. How do information technologies contribute to the business success of the companies depicted in the case? The information technologies contribute to the business success of the companies through immediate responds‚ first to the needs of the customers on how the company will satisfy each and every customers and the monitoring of the fast changing trends in business through the use of information technology
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Laura Ashley and Federal Express Strategic Alliance Laura Ashley is a global clothing and furnishings retailer based in the United Kingdom. They have grown at a very fast rate from operating 231 retail stores in 1986 to 481 stores in 1990. Unfortunately‚ its profits were not increasing as expected due to the inefficiency of its logistics management. There was an over dependence on in-house manufacturing‚ SBUs operated as stand-alone businesses with independent inventory and systems which means duplicated
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FedEx does have the right to enforce personal grooming policy. This policy must be applied to all employees equally in the same work classification. FedEx is providing their customers a product and service in which the employee must interact with the customer. This interaction is vital to FedEx being successful in retaining their customer base. When a customer complains about an appearance an employee portrayed‚ a company can implement a personal grooming policy as long as the policy is fair to all
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structure evolved in recent years? How have the changes affected small competitors? The US express mail industry is highly consolidated. 85% of the market is served by 3 service providers. There are six second tier players who serve the remaining 15%. FedEx and UPS lead the industry in services and innovation. The following trends have been observed in this Industry. Services: A host of services are provided to suit the needs to different businesses. Overnight shipping and next-morning delivery are most
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services‚ i.e. Priority One‚ Standard Air Service‚ and Courier Pak (Table 1). Federal Express Product FedEx specializes in guaranteed overnight delivery of high-priority packages‚ documents‚ and heavy freight. How does Courier Pak fit in Federal Express? For services users Courier Pak is a guarantee overnight delivery service‚ and is expected to be delivered to anywhere within the FedEx system for the cost of $12.5 with the weight up to 2 pounds regardless the distance of the destination.
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firm is very important to its success. Today firms are moving away from the centralized structure of the past‚ and adopting a more decentralized structure (Management Challenges in the 21st Century p 315). The air express industry is no exception. FedEx‚ the leader in the air express industry since the late eighties‚ is also leading U.P.S. in the race to become decentralized. Airborne Express is not even in the race. In order to compete in today’s changing environment‚ Airborne Express needs to
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