Document Type

Closed Project

Publication Date

Winter 2015

Instructor

Antonie J. Jetter

Course Title

Technology Marketing

Course Number

ETM 555/655

Abstract

Drone technology has been used for many industrial applications including agriculture monitoring, construction photography, emergent goods delivery, and so forth. Recently, drone for logistics has been explored by some E-retailers or logistics providers including Amazon, DHL, UPS, Google, and so forth. With the growing numbers of both on line shopping customers and commercial drones, this creates great opportunity for Boeing to move forward and provide robust SkyExpress drone technology to those giant E-retailers such as Walmart, Apple, Walgreen, Macy, Nike etc. According to market research, U.S online retail sales are expected to grow 57% by 2018 and estimated revenue value of $574.5 billion by 2019. There will be about $89 billion in cumulative spending on UAVs globally over the next 10 years. In addition, FAA is overseeing the gradual development of rules and systems that will guarantee safety, as well as privacy. This market research information justify that drone for logistics is an emerging market trend. US E retailers have been selected as geographic market segmentation, due to its larger portion of on line customer and revenue. E-retailers including Walmart, Apple, Walgreen, Macy, Nike, and Barnes & Nobles are chosen because the products or packages provided match the priority of on line shoppers and limitation of drone delivery. From customers’ viewpoints, cost, convenience, and eco-friendly are recognized as value drivers with a focus on speedy delivery, low cost, and reducing ecological footprints. By considering drone delivery business model, the total drones to be sold has been estimated as 519,870 units for the next 5 years. This will come with 4.2 Billion revenue and 2.2 Billion of profits for Boeing SkyExpress. By looking at the drone technology life cycle, beachhead and whole product strategy are proposed to be used to cross the chasm and further increase the market share. Considering this industrial marketing nature, direct sale and channel model are applied and performance monitoring mechanism is implemented for maintaining competitive advantage in drone for logistics delivery market.

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Comments

This project is only available to students, staff, and faculty of Portland State University

Persistent Identifier

http://archives.pdx.edu/ds/psu/21637

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