E-commerce & Logistics Harvard Case Solution & Analysis

CHAPTER 01: INTRODUCTION

Background of the Study

In most of the developing economies, ecommerce logisitics has played the role of latest big driver of change within the logistics industry and the physical distribution networks. This has basically evolved over the past 40 years. At present, it has remained the case that the e-commenrce will only grow and most of the compnaies in various industries will look to evolve through this channel. Specifically, multinational compnaies will look to grow and depend upon the concept. A srong infrastructre will make the situation turn in favor of companies that can look to use the new technology.

Electronic commerce is basically a purchase method, which steadily acquires a greater global role that is compared to its predecessor with the traditonal trade. The most notable competitive advanatge of electronic commerce is the convenience of shopping online from home or from any other place. It also includes the wide range of supply with the anonymity and rather more competitive prices too. The differences have made the buyers to choose through the daily modality, which makes them to preferably buy the items through online sources before they actually visit the shop and buy through traditional chain. However, traditional stores have a higher success ratio than the e-commerce sites and online purchasing because of the tangibltiy and relaiblity of goods delivered to the customers. Numerous efforts and huge investments are made ​​each year by e-commerce companies around the world to add the inherent attributes of traditional trade to its competitive advantages. In an extremely competitive environment, it is essential to take care of every aspect that affects customer satisfaction (Baziotopoulos, 2008).

China Post has been the official postal service in China. The State Bureau of the Chinese society is the owner of China post services within all parts of the country. It is a government owned enterprise and the regulatory authroity. Therefore, it is accountable for the various regulations of the national postal indsutry and the overall management of national postal enterprises in the country.

The postal services in China are quite an old concept, which dates back to the Shang Dynasty. The first post office was established in 1878 by Li Hongzhang at the suggestion of the foreign powers while it also had its branches in five of the major trading cities. In March 1896, the customer post office was transformed into the Great Qing Post; which was announced as an independent customer service forum in the year 1911. The latest postal system service of People Republic of China was established in 1949. It was replaced by the Chunghwa Post in 1949 and in the overall Universal Postal Union in 1972. The new postal system or the service, the China Post is now directly supervised by the State Post Bureau of the PRC, which has the responsibility for the standard regulatory postal offerings in China. The State Post Bureau is a reporting agency, which reports to the Ministry of Information Industry of the Chinese people (Baziotopoulos, 2008).

The United States Postal Service (USPS) which is also called the Post Office, United States Mail, or it is also known as the Postal Service is an independent agency within United States. It is solely responsible to provide all the postal services to each client within the country. It has been one of the few agencies that are even authroized by the United States consititution. The company USPS has its roots since 1775 during the Second Continental Congress where the first appointed postmaster general was Benjamin Franklin. The United States Postal Service has employed more than 626,764 employees and has a fleet vehicle of 211,654 vehicles in 2013. The USPS has been the largest operator civilian vehicle fleet globally. The USPS is officially deisgnated to serve the American citizens, regardless of the geography that is served with a uniform price and optimum quality. The compnay has not been receiving taxpayer dollars since the early period of the 1980s with quite a minor exception of subsidies for the cost that is associated with the disabled and the overseas voters too. The services company offers its employees with the prefund along with the employee retirement plans and the pension benefits to the workers, which requires the government and private organizations to exceed the dropped revenue with the affect of the recession in the American economy (Leahy, 1995).

The United States Postal Service has recently entered into a deal with China Post and eBay last year. The purpose of this is to help the Chinese sellers to send small packages to the United States in less time than the normal regular international delivery services and schedules. eBay has revealed that this agreement has led the company ..........................

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