Review the case of national parcel service

Assignment Help Management Theories

Reference no: EM131473319

Question: National Parcel Service is a "zone shipper," a shipping company that receives packages from mail order and retail catalog merchants and delivers them in bulk to U.S. Postal Service (USPS) bulk mail distribution centers. This enables National to charge lower prices than United Parcel Service (UPS), because UPS charges a premium for residential deliveries, and to offer faster service than USPS. J. B. Hunt is an interstate trucking company. In mid-1994, a J. B. Hunt subsidiary entered the zone shipping market, targeting the customers of National and another zone shipper, GTC, with low prices. J. B. Hunt's initial strategy was to make "whatever price concessions you need to give or whatever, get us in the business quickly." J. B. Hunt's revenues grew quickly even though it lost money, while National lost business. National brought a suit, seeking damages for predatory pricing under Section 2 of the Sherman Act. Has J. B. Hunt engaged in predatory pricing? Why, or why not?

Reference no: EM131473319

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