CASE- LAURA ASHLEY AND FEDERAL

EXPRESS STRATEGIC ALLIANCE

PRESENTED BY
ABHISHEK SHAH, SUNANDA LAL
VIVEK KANNAN, YATISH PODALI
VALUE PREPOSITION
Laura Ashley - Quintessentially English lifestyle
products with quality, service and things that last.

Firm to be outsourced- custom made logistics service integrating
logistics, warehousing & delivery operations to an international level.

The decision to outsource logistics & distribution adds on to the value preposition since it will improve the
service level & also enable LA to focus on its core competency.
RISK TO BOTH PARTNERS
LA
1 State of delivered product is not guaranteed
2 Loss of logistics innovative capacity
3 Loss of opportunity to cut down cost through optimization of logistics
4 Loss of control valuating and monitoring
5 Conflicts of culture
PARTNER
1 Dependency on growth & performance on the other company
2 Conflicts of culture
3 Deterioration of image in market if contract fails
BENEFITS TO BOTH PARTNERS
LA
1 Increased asset turnover
1 Reduced working capital
2 Reduced inventory levels
3 Improved service levels
4 Ability to focus resources on activities which add most value
5 Improved product flow

PARTNER
1 Exposure to global market
2 Opportunity to prove expertise
3 Improved capacity utilization
4 Better network all over the distribution areas
LONG TERM STRATEGIC IMPLICATIONS
LA
1 Reduced pressure on bottom line
2 It will free up capital to invest on more product lines
3 Opportunities to expand into markets where the partner is already operating
4 Expansion of mail order business that LA had already planned.
PARTNER

1 Attract similar customers based on the success with LA.
2
3
4
TEAMS VIEWPOINT