Question 1. How and why has the express mail industry structure evolved in recent years? How have the changes affected small competitors? The express delivery market was one of the fastest growing industries in the past two decades. In that time, almost every business and many individuals used express mail delivery services to ship their documents and parcels.
EasyJet- Case Study 1 Q1. Analyse the structure of the industry in which easyJet competes. How attractive was the industry in the late 1990s? The core objective of easyJet was to establish a sustainable mode of air travel at a price that would be comparatively cheaper to its rivals. By using a framework by (Porter 1980) we can illustrate the compatibility of such a strategy in the existing aviation industry Potential Entrants Despite the high volume of new entrants during the period of easyjet’s inception, only a minority were actually able to survive.
Case 14-1 (Green and Lean) Going Green has economic advantages which normally impact profitability. For George and Jeff to achieve their objective about going Green and lean simultaneously, they need to focus on some of the old axioms for transportation efficiency, namely, “don’t ship air” and “don’t ship water.” “Don’t ship air”, this recognizes that empty space in a motor carrier trailer or from empty backhauls or less- than-capacity dispatches is wasted and never recovered. So George and Jeff can put emphasis on consolidation to fill equipment to capacity or near capacity. This has a potential to significantly reduce network miles, especially in the motor carrier sector. The reduction in the network miles will improve fuel efficiency and reduce the carbon footprint.
Mortgage lenders popped up on every corner with aggressive marketing tactics like “teaser” introductory rates (that inevitably ramp up to higher rates and higher payments) and “interest-only” loans with huge balloon payments due at some point in the future. They also made it easy for practically anyone to get a mortgage, with little or low-documentation required. In effect, millions of Americans now held mortgages that they were not sophisticated enough to understand nor wealthy enough to afford. But Wall Street was packaging and selling MBSs at an unbelievable pace. And they were making a tremendous amount of money doing it.
Not to mention, the startup of some discount airlines such as Southwest has hurt the major airline companies even more. There are numerous strong competitors that offer similar services, with many using the same routes as Southwest. There are approximately 28,000 commercial air flights every day, keeping the airline travel market very saturated. With the high number of flights and number of routes
There are lots of safety benefits if you take the VTA instead of driving your own car. According to FTA, the data shows that between 2003 and 2008 taking the public transit was the safest way to travel with an average 0.05 deaths per 100 million passenger miles comparing to car passenger deaths which are 1.42 per 100 million passengers. Moreove, VTA has a nightstop program, so after evening peak hours untill the morning rush a VTA bus operator can stop at a location that is closer to your final destination so passengers are in less danger while walking to the final destination. Also, you don’t have to deal with the parking which is probably the biggest problem in our city. Speaking of parking, do you know how much does it cost to have a parking lot for a semester?
JetBlue Airline LOW COST LEADERSHIP MODEL OPERATIONS - Low-cost leader because of full planes, hedging of fuel, pilot training, and maintenance costs - 100% ticket-less reservations - Agents work from home at a lower rate than other airlines - Pilots paid less because there is no seniority standing - Only offer snacks instead of meals, which helps to keep costs down SALES & MARKETING - True blue frequent flyer program - Satellite televisions free in every seat on the plane - Strong word-of-mouth from previous passengers - Several marketing awards noticing their hip and humorous advertising, 2002 & 2003 - First to book flights online, technology SERVICE - Self-service kiosks for those passengers who are in a hurry - Agents who walk around and help guests check-in, portable devices - Flights are never over-booked, also all passengers are assigned a seat - Pilots will load baggage to ensure on time departures - Leg room has been extended to 34”, from the industry standard 31” JetBlue has tried to position their company in the airline business as a low-cost leader that provides quality service. The problem with this type of position in the airline business is that although there are only a few substitutes, they are very strong. Many different new airlines have attempted to enter the market, such as People Express Airline, who in the early 1980’s attempted the same strategy as JetBlue and failed. JetBlue has been able to fight off rivalry from fellow competitors since they were incorporated in 2000. JetBlue has an economy of scale for cost on a seat per mile basis, even surpassing Southwest airlines.
An evaluation of the New zealand travel agency environment. Executive summary The key points that have been established include firstly the buyer power of the industry; it is high as a result of having a large number of suppliers with a concentrated number of buyers, giving the buyers high control. On top of this, supplier power is also high in the industry as the travel agencies are heavily reliant on the commissions of airline tickets. In fact, their income and profitability is contingent to the selling price of the goods and services from the suppliers. Threat of substitutes from such services as internet providers is high and increasing as modern technology becomes more prominent, it is a driving force resulting in the disintermediation of traditional travel agency businesses.
So, if he doesn’t take his stuff which he needs during the day, he has drive about an hour to go back home which it cost him almost10$. So, instead of making money for that hour, he loses it. He has to spend money and lose time by driving. Besides saving time and money, carrying stuff that people need throughout the day also makes people more prepared. People feel confidence because they have every thing that they need for their day’s activities.
Firm B – Warehouse shopping club Main reasons: • This company has a high level of inventory (17.3%) and a high level of inventory turnover (11.0). • Compared to the supermarket chain, this company has a higher percentage of net, plant and equipment (65.4% vs. 46.5%) and higher margins, since generally they have more value aggregated products. The warehouse-shopping club also has a similar number for days of receivables, characteristics of the payments in cash and payment cards. Firm C – Express delivery firm Main reasons: • Among all firms, we realize that firm C has the highest percentage for long-term debt (32.9%), characteristic of this type of companies that need long term debt to finance many of their assets. • In terms of days of receivable, this firm has an average number (41.2) as generally they give credit to some of its costumers.