eShip-4U Case Solution
Much like today's omnipresent ATMs, ADMs would allow consumers to have packages delivered to a nearby ADM instead of to their homes. As a result when a package is delivered, the customer would be alerted with a text message that would contain a specific PIN code, through which the customer canpick his or her package. Currently, carriers (FedEx, UPS, and the U.S. Postal Service) bear huge prices for local deliveries (the so-called last-mile cost),) possibly as much as $6 billion annually. Most of this cost would vanish if packages could be delivered to ADMs rather than to dwellings. At the core of eShip's notion is a sophisticated information system that links all the ADMs over the Internet. This case focuses on eShip's effort to invent a business model to facilitate entering the U.S. market. The predicament centers on the role with whom it should associate and that eShip should play in the value chain. Although the ADM notion potentially creates enormous worth, capturing some of that value is an intimidating challenge, particularly in the face of the size and power of U.S. carriers.
This is just an excerpt. This case is about TECHNOLOGY & OPERATIONS
PUBLICATION DATE: October 22, 2002
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