Senate Hall Academic Publishing

Journal of Strategic Management

Click the JSME logo for a sample strategy paper

Publications & Abstracts below

ISSN: 1649-3877

Listed by: Cabells and EBSCO

Frequency: 1 online Volume per year


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

JSME Vol 5: Issues 3 & 4, 2009

Author(s): Helmut M. Dietl, Markus Lang, Martin Lutzenberger, Stephan M. Wagner (University of Zurich and Swiss Federal Institute of Technology Zurich, Switzerland)

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. We describe the market and contrast the incumbents' and the entrant's business strategies. Moreover, we develop a model to analyze the effect of the entrant's market entry on competitive strategies, market shares, prices, costs and profits.
First, we solve the game-theoretic model analytically to derive qualitative results. In a second step, we simulate market entry and competition by calibrating the model with data from the German B2B
market illustrating the impact of market entry in various scenarios.

Keywords: market entry, incumbent, competitive strategies, market shares, B2B parcel market, Cournot model, calibration.

Purchase this Article

To purchase this article click the Add To Order button below. The paper will be delivered electronically as a watermarked PDF file with a licence to make the number of copies ordered. Delivery of the article to your email address will normally be within 24 hours of placing the order online. If you would prefer to post or fax your order then please CLICK HERE for a printable order form. If you experience any difficulties please email us at:

If you wish to take out a yearly subscription to this journal CLICK HERE for prices and to order

Paper Pricing
USA and Rest of World
US Dollars($)
Euros (€)
Great Britain
Sterling (£)
Article Price