Local delivery service opportunities in e-commerce

This is a study of the local package delivery industry. This thesis shall consider only businesses that are engaged in delivery of goods and services that have been purchased online. Such companies may or may not be engaged in other business activities aside from delivery. Local refers to deliveries that are made between origin (pickup from warehouses or stores) and destination (drop-oft) points that are within the same metropolitan area. The overall objectives of this thesis are to show: ) -- There are significant pressures in this industry forcing a vertical disintegration, the process by which companies transform themselves from being an end-to-end retailer to serving only specific part(s) of the value chain. The early entrants in the market began as online grocery and replenishment retailers. Today, the focus is shifting towards becoming a delivery infrastructure for businesses and consumers. ) -- There will be significant business opportunities in serving the local delivery businesses resulting from the forced disintegration of the industry. One class of opportunities is to address the basic needs of local delivery companies such as providing the technology components for running fleet operations. Another class is the result of the fragmentation of the industry and the inclination of businesses to simplify choices for customers. New businesses will be formed through creative set of partnerships that counteract the impact of disintegration. ) -- For individual companies to succeed and grab investor attention, they will have to revolutionize rather than simply evolve their part of the value chain. Only innovative approaches to solving needs can have sustainable competitive advantage. We begin by discussing the value chain for the local delivery businesses and the structure of this industry. Then, we shall proceed to analyzing various business drivers that are pushing the industry towards a vertical disintegration and a focus on service. Afterwards, we will talk about what vertical disintegration means to existing companies and future entrants and the outlook for the industry. We will end this thesis by discussing various forms of business opportunities that exist for companies that want to serve local delivery industry.

Department dc:contributor.department

Sloan School of Management.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2000

Author dc:creator

• Morakabati, Reza

Advisor dc:contributor.advisor

• Nader Tavassoli.

• Sloan School of Management.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/9153

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/9153