1. Executive summary

This marketing analysis seeks to establish an opportunity in the use of drone technology. Specifically, the aim is to find if there is a gap in courier services across several industries that can be fulfilled by drone technology. Drones have been used in different applications before, but it is still a new field in the delivery of products. On the other hand, the delivery of products through eCommerce is a large industry which continues to grow tremendously. As such, there can be a significant opportunity for drone technology to enter this marketplace.

2. Introduction

Drones are undoubtedly revolutionising several industries. They have recently found a popular use as an accessory for the cameras, in delivering services for eCommerce enterprises among others. Their use in these areas is indispensable as they bring into these industries with a complete paradigm shift. For instance, as an accessory in video cameras, they completely replace the need for using expensive helicopters to capture aerial images. The cost savings in this case are enormous. In courier services, particularly in short distance carrier, they can offer almost immediate delivery of products purchased from an online store. For example, they can be used to deliver meals ordered from an online restaurant few minutes after a customer orders the food item. This efficiency absolutely makes business sense. Nonetheless, the use of drones has not been sufficiently exploited, particularly in the delivery of small cargo such as in commerce setups. This paper analyses the possibilities of a new entrant venturing into the market space.

Statement of objectives

The paper seeks to analyse the market opportunity that exists for a new entrant into this space. It will evaluate the product, open opportunities, and an entry strategy that such an entrant can adopt to launch services in this product category. It will also analyse the marketplace to formulate the exact strategy that would be appropriate for the new entrant. The paper will focus on the use of drones in the courier market.

3. Product description

Drones are a relatively old technology. But in the context of commerce or personal products, they are a relatively new phenomenon. They have extensively been used by the military in warfare and distribution of humanitarian aid. Nonetheless, their use of personal products such as video cameras is just beginning to pace up. The focus of this analysis is on the use of drones in the courier market. There is an immense opportunity for entrants in this space to utilise drone technology in ecommerce.

Drones are automatic flying equipment. Since they do not need a human operator, the cost of laying a drone falls dramatically. They are also relatively small in size, which allows them to fly low and easily penetrate airspaces. Their small size also means that they are fuel-efficient, which reduces their cost of operation too. The challenge that most drones present is that they cannot fly for long distances which makes them unsuitable for use in long-distance courier services