Federal Express (B) Case Study

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Q: Do you think Courier Pak is a good fit or a bad fit for Federal Express? Why? The Courier Pak was a good fit for Federal Express (FEC) from an environmental, company, cost, and competitive standpoint. The business environment of the mid 1970s airfreight industry played almost directly into the relative strengths of a small-package air service like FEC. As stated in the case study, "Bulk products and commodity goods were rarely sent by …

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…sensitivity was pretty low in this market anyway) instead it competed on convenience and value. The consumer pre-purchases five or more Courier Paks, and when he/she is ready to send something, all they have to do is call FEC. They don't have to run to the post office and wait on line, which was a drawback of Express Mail. From a packaging standpoint, Courier Pak's waterproof, tearproof envelope offered a unique physical shipping method.