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Case study: The company John Air freight (JAF) is an air carrier specialized in a delivery of large parcels anywhere in Europe. The managing director of the company, Alan John, he noticed that the sales of the Companys existing products have reached s

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Santos Ruben S10002173 OPERATIONS MANAGEMENT CASE STUDY: JOHN AIR FREIGHT Tutor: John D Mortimer The larger markets in terms of revenues and sales of cross-border postal and express services are located in North America, Western Europe and Asia Pacific. The report "Eastern European Express and Parcels Delivery Market Report 2005," estimates the express delivery market in this region will be a EURO2.7-billion business by 2010. For European express and parcels delivery providers there is an opportunity to benefit from growing parcel volumes in the region. Nowadays, it exists an intensive competition in Global courier, express & Parcel services market Europe. Four large delivery companies (FedEx, UPS, DHL, and TNT) commonly known as integrators, dominate the worldwide courier, express and parcel market. To remain competitive, companies today must be flexible and be able to respond quickly to changes in their environment and changes in customer demands. Every organisation needs a plan that describes how it will achieve its business goals and successfully compete for customers. Although the European postal services sector once again stands on the threshold of significant further liberalization in the domestic markets, it has been fully open and competitive in the cross-border segments for some time. Since 2009, in the part major of European Union, the national post-office has not anymore the monopoly on the traditional letter. The privatization of almost post-office allowed the expansion of the competition on the price. ...read more.


Indeed, JAF company delivers large parcel anywhere in Europe. This service is used when its customers meet emergency needs. Parcels are usually bulky so it does not take many customers to fill the planes. Therefore, its customers are limited. With the letters or small parcels, the company can fill the planes and therefore have a large clientele. To be competitive in this industry, JAF Company needs to have an efficient supply chain and considered the changes of costs, profitable, revenue and taxes. It is the essentials points that the company should consider in this process. The changes will be based on marketing mix. The Marketing mix known as the four Ps (product, promotion, price and place) of the marketing is used by an organisation to meet customer needs. JAF Company wants to penetrate another market therefore diversify its existing product. JAF need to differentiate the product to meet the needs of the different users because it product have reached the saturation. As a market-orientated organisation, JAF must understand what its customers want to meet their needs. The overnight letter delivery service is an urgent service with guaranteed the speed from next working day therefore the service will be highly-priced. Then, the price is determined by a number of factors. These include market share, competition, material costs or how the customer sees the value of the product. ...read more.


In fact, JAF company used its service when its customers meet emergency needs. It means it is not every day. The demand of the overnight delivery of letters is high therefore this includes a change in the organisation. In this type of service it could be led up to deliver every day. Moreover, physical locations of plant and store have dominated customer service for the largest part of the twentieth century. Good, central locations, though, are becoming harder to find, more expensive to maintain. Taxes, security, liability, theft, high labor cost and a variety of associated, escalating costs threaten their viability. The service must be efficient and several company are already captured this market. It is not a niche in this market. The overnight letter delivery service industry simplifies and speeds the process of transporting goods. Other transport operators on their own cannot respond to the needs of business as effectively as the main competitors. In particular, they are not able to offer the same level of rapid, guaranteed delivery to as wide a range of destinations. Finally, with growth of the express industry which is one of the world's fastest-growing sectors since 1998, the competition is increased. It is expanding particularly rapidly in the transition and emerging market economies. It will better if JAF company expand a niche in this market or expand its market in another field. The risk to fail is high because of the competition and the e-commerce. It could not do the difference compared with the competitors in terms of cost, speed and control. ...read more.

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