RFID-Based Entry Into the German B2B Parcel Market and Its Effect on Competitive Strategies, Prices and Market Shares: The Case of Red Parcel Post

Date Added: Oct 2009
Format: PDF

This paper analyzes the market entry of Red Parcel Post, a new player in the German Business-to-Business (B2B) parcel market. Currently there are four large service providers in the German B2B parcel market. Each of these incumbent providers operates - albeit with varying degrees of automation - with a classical multi-hub-and-spoke network. Red Parcel Post plans to enter the B2B parcel market with a completely new parcel delivery system for the delivery of B2B parcels throughout Germany based on a new transport network design, and RFID- and GPS-based operations. Such operations shall enable the entrant to offer new services to potential customers and realize lower costs and prices than the established firms.