Airborne Express and Husky Injection
Airborne Express and Husky Injection Molding Systems
Airborne Express
1. Perform a five-forces analysis of Airborne Express’ industry. Forces | Items | Power | Rivalry | * Big competitors are FedEx and UPS; * Smaller competitors like BAX Global, DHL, Worldwide Express, Emery Worldwide, RPS, TNT Express, Worldwide, and US Post Service | Keen competition with big competitors as they account for the lion’s share of the market | Entry barriers | * Economy of scale * CAPEX on IT, facilities, aircrafts and airports, trucks, * Brand loyalty, licensing, customer networks | High entry barrier to the industry because of large economy of scale, high CAPEX, and dominating market shares of big players | Substitutes | * Emails for letters * General post services for parcels at lower speed | General letters are almost substituted by emails as they are free and quick;Post services cannot substitute speedy parcel delivery | Buyers | * Mostly business customers * Some residential customers | Low switching cost making buyers free to choose couriers | Suppliers | * Aircraft and airport * Trucks, fuel, IT service providers, advertising agencies, box and envelop suppliers | Aircraft and airport have strong power as it’s hard to choose alternative suppliers; the others are easily replaceable |
2. Imagine you were a consultant analyzing FedEx’s competitive advantages in 1985:
a. What activities does FedEx perform differently / more effectively than its competitors?
FedEx virtually invented the express mail industry. It held around 45% of the domestic express mail market and was the industry leader.
FedEx used a cutting-edge information and logistics technology. Its central computer system, COSMOS, coordinated vehicles, people, packages, routes, and weather information. The system increased the efficiency and speed of work and minimized human errors, which were very important in the express industry.
FedEx also took efforts in quality
Airborne Express
1. Perform a five-forces analysis of Airborne Express’ industry. Forces | Items | Power | Rivalry | * Big competitors are FedEx and UPS; * Smaller competitors like BAX Global, DHL, Worldwide Express, Emery Worldwide, RPS, TNT Express, Worldwide, and US Post Service | Keen competition with big competitors as they account for the lion’s share of the market | Entry barriers | * Economy of scale * CAPEX on IT, facilities, aircrafts and airports, trucks, * Brand loyalty, licensing, customer networks | High entry barrier to the industry because of large economy of scale, high CAPEX, and dominating market shares of big players | Substitutes | * Emails for letters * General post services for parcels at lower speed | General letters are almost substituted by emails as they are free and quick;Post services cannot substitute speedy parcel delivery | Buyers | * Mostly business customers * Some residential customers | Low switching cost making buyers free to choose couriers | Suppliers | * Aircraft and airport * Trucks, fuel, IT service providers, advertising agencies, box and envelop suppliers | Aircraft and airport have strong power as it’s hard to choose alternative suppliers; the others are easily replaceable |
2. Imagine you were a consultant analyzing FedEx’s competitive advantages in 1985:
a. What activities does FedEx perform differently / more effectively than its competitors?
FedEx virtually invented the express mail industry. It held around 45% of the domestic express mail market and was the industry leader.
FedEx used a cutting-edge information and logistics technology. Its central computer system, COSMOS, coordinated vehicles, people, packages, routes, and weather information. The system increased the efficiency and speed of work and minimized human errors, which were very important in the express industry.
FedEx also took efforts in quality