This research explores the feasibility of a business strategy option for an air transportation firm that would cause the firm to focus almost exclusively on the air transport of perishable goods from source to market.
Justification For A Perishables Strategy
Speed and constant temperature are the keys to success in shipping time-sensitive goods like flowers, seafood, and fresh fruits (Cohan 10). As an example, on Valentine's Day the temperature in Minneapolis hovers around 20 degrees Fahrenheit; yet many of the city's residents want to celebrate the holiday with red roses that must be shipped from warmer climes. Roses for Minneapolis in mid-winter come primarily from Mexico. The Mexican border is 1,500 miles from Minneapolis, which leaves two delivery choicesùair cargo or truck. While truckers have developed refrigeration technology to carry flowers and other perishable commodities safely, roses are delicate even by floral standards. Air cargo is used more frequently for roses, because they are more perishable. A similar case may be made for other time-sensitive products.
The demand in Minnesota for roses in mid-winter is just one of many examples of an increasing worldwide consumer market for specialty products regardless of the season (Cohan 11). Besides flowers, seafood, produce, frozen food, dairy products, and baked goods, industrial items like film are providing big business for air freight carriers and forwarders that specialize in fast, careful service.
Sales of cut flowers more than doubled between 1984 and 1992 due largely to air cargo shipments to distant markets from the growers (Cohan 12). Increasingly, much of the time-sensitive cargo being shipped by air is entering the United States from foreign markets.
Every year, more and more exotic foods, flowers and other perishables appear in American markets (Delia-Doyle 16). Even the old seasonal favorites, such as grapes and pears, now are availa...