Focal firm - window warehouse space lg metro areas domestic...

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------------ 11/10/2014 Focal firm: Express Mail industry (FedEx, UPS, etc) Buyers: Individuals, businesses, retailers, supply chain deliveries + low switching costs - Few large companies - contracts Intense rivalry: competing a lot on price similar products + services price competition: 50% discount for some buyers Barriers to entry: heavy fixed costs: airplanes, hubs (warehouses), advertising technology - fedex had a wireless system in 1984...nobody else had it Substitutes: Email/Internet Fedex and UPS are both automated...competing on efficiency Suppliers: Labor, airline makers, some power down the chain Customer Products/Services Geographic “Generic Position” Airborne - lg businesses - corporate clients - logistics managers - Predictable - B-B- supply chain - 2nd day delivery
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Unformatted text preview: window- warehouse space- lg metro areas- domestic- low cost- higher WTP Fedex- Small + lg businesses- indiv. customers- Volatile- overnight- adv. tracking- money back guarantee- international- anywhere really- Diff Strategy Pickup + delivery air + hub Customer Service IT Airborne- more parcels per stop- No retail stores- more trucks rather than aircrafts- 80% efficiency- own airport- no landing costs- less automation, more humans- Familiar service agent- self tracking available- No advantage- stripped down Fedex- retail locations- scheduled pickups- No contracted delivery- More aircrafts- 65-70% efficiency- 8 US hubs, 5 overseas- 100% customer satisfaction- call centers frequently monitored- Advantage- S.O.T.A------------...
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