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Posted: April 13th, 2023
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You will read assigned chapters and provide examples to chapter concepts from Costco.
Here is an example of Chapter 2 format you could model for future chapters if you use bullet points format:
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Company Information:
Company: FedEx Corporation
CEO: Frederic W. Smith
Year Founded: 1973
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FY20 Revenue: $69.2B
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Employees: 600,000
Description: “FedEx Crop. provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services” (Fedex.com)
Chapter 2: New Products Process
· Phases
o Phase 1: Booming e-commerce market and improved delivery times
o Phase 2: Qualified applicants can sign up to be home delivery driver for FedEx Ground / Express
o Phase 3: Having drivers like Amazon who can help deliver packages which improve delivery times, customer satisfaction, enterprise client relationships, and additionally help allocate resources that are currently doing this to other expansion projects.
o Phase 4: Qualifying applicants can use their vehicle to help deliver packages in a specified zip code
o Phase 5: Launch in large metropolitan areas and monitor results monthly.
· Opportunity:
o Ecommerce is FedEx’s biggest opportunity. E-commerce sales are forecasted to nearly double in the next two years (Bstrategyhub, 2020)
o Ecommerce expansion also allows for market penetration in untapped areas in the U.S and Latin America
o Hiring qualified drivers to deliver shipments at customers homes allows for certified DOT drivers to focus on other expansion efforts and helps allocate resources to other business segments and opportunities
o Improved delivery times can bring customers back to big retailers as opposed to Amazon, additionally helping customer service and retention which was seen as one of FedEx’s biggest weakness (Pestleanalysis, 2020).
· Concept Generation:
o Qualified drivers can load up their cars and deliver shipments to customers. Once they are done with their route, they can go back and reload and service a new route.
o In heavily metropolitan areas, these drivers can continue their routes daily allowing for efficiency and optimization
o Through improved delivery times, large retailer stores are more apt to partner with FedEx allowing for gained market share from Amazon
· Concept Evaluation:
o Screening:
§ Costs
§ Technology
§ Liability
· Development
o Beta test in high density areas such as Los Angeles, Orange County, San Diego.
o Do field research and monitor sales, customer satisfaction, and client retention. And of course, gross profit.
o Allow retailers to advertise improved delivery times and service on their website
o Promote on social media outlets
· Launch
o Launch services in large metropolitan areas in the U.S. and Latin America
You then give an example from your company/proposed product/service where applicable, and most importantly, you MUST cite your sources at the end under References.
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