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Essay / Federal Express Product Review - 1222
IntroductionThe main products of Federal Express deliver packages to popular locations in a short period of time. In this case study, we would focus our discussion on its most cost-effective services, namely Priority One, Standard Air Service and Courier Pak (Table 1). Federal Express Product FedEx specializes in guaranteed next day delivery of high priority packages, documents and heavy goods. freight.How does Courier Pak integrate with Federal Express?For Service UsersCourier Pak is a guaranteed next day delivery service and should be delivered anywhere in the FedEx system for the cost of $12.5 with a weight of up to 2 pounds, regardless of the distance from the destination. Courier Pak's waterproof, tear-resistant envelope provided customers with a unique physical shipping method, protected documents and met their security needs. For Federal Express, as mentioned in the case, there is significant market potential (nearly 870,000 pieces per day) for documents and small package shipping. Analysis shows that at FEC stations, Courier Pak volume is 30% higher than Priority One. This means that the Courier Pak market has growing potential. Furthermore, it turns out that its variable cost is the lowest among all other overnight delivery services provided by Federal Express (Table 2). This means that Courier Pak could be a more profitable product. Our Analysis Current Situation Typical air freight users were producers of time-sensitive and expensive finished goods, such as valuable architecture and confidential documents. But in 1976, a spring survey showed that only 24 percent of customers used both Courier Pak and Priority One services, while less than 1 percent of them used Courier Pak alone. Additionally, the cap...... middle of paper ......s. Experiments can show potential customers that important documents using Courier Pak are much more secure than using other types of paper bags. In advertising, FedEx may emphasize that customers only need to spend a specific price for packages weighing up to 2 pounds, packages can be delivered anywhere within FedEx's operating territory by overnight Courier Pak service . Emphasis was placed on the speed, reliability and security provided by Courier Pak compared to its competitors. And people have applied FedEx's V-oriented philosophy, where they've made this their primary business and others treat it as their secondary business. ConclusionBased on product market fit, Courier Pak is a perfect fit for the business, from an environmental, business, cost and competitive perspective. So we think FedEx should pay special attention to Courier Pak..