eShip small Israeli startup with potentially exciting new concept for the residential package delivery value chain - Automatic machine for delivery (ADM). Much like the now ubiquitous ATM ADM files will allow users to have a parcel delivered to a nearby ADM, not their residence. When a packet arrives, the customer will be contacted, this PIN-code, and can get the package at any time, day or night. Currently carriers (FedEx, UPS, and U.S. Postal Service) carry enormous costs for local delivery (the so-called last mile cost), perhaps as much as $ 6 billion a year. Much of this cost would disappear if packets can be delivered to the files ADM, but not houses. The concept is complex eShip information system that connects all the ADM files over the Internet. This case focuses on the attempt eShip, to formulate a business model in order to facilitate access to the U.S. market. The dilemma centers on the role to be played by eShip in the value chain and with whom he has a partner. While the concept of ADM potentially creates a huge value, capturing part of the value is not an easy task, especially in the face of the size and power of the U.S. media. "Hide
by Roy D. Shapiro, Timothy M. Laseter Source: Harvard Business School 19 pages. Publication Date: October 22, 2002. Prod. #: 603076-PDF-ENG
