Executive summary Airborne Express is the third largest and fastest growing international air express delivery company in America. It held roughly 16% of the domestic express mail market by 1997. It provides time-sensitive delivery of documents‚ letters‚ small packages‚ and freight in the United States and internationally. The company has several advantages over its rivals‚ such as it provides delivery services at a lower cost of up to 20% over FedEx and UPS; it operates the nation’s only privately
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Airborne Express 3. Now consider the situation of Airborne Express in 1997: a. What activities does Airborne perform differently / more effectively than its competitors? Airborne Express is unique to its competitors in several ways. First of all‚ Airborne Express targets business customers that regularly ship large volume of urgent items‚ primarily to other business locations‚ by-passing residential deliveries and infrequent shippers. This allows the company to focus its deliveries to major metropolitan
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Airborne Express Tigran Hakobyan To answer the questions of this case let’s first of all understand the overall industry where the company is operating. In general‚ we can state that there is a strong competition between firms in this industry. Firms provide similar services and also the degree of substitutability is high. Profit margins are relatively low. The threat of new entrants is low because market for express deliveries is difficult to access‚ capital requirements are high and also
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December 31st‚ 2007 To: Robert Brazier & Senior Management Team of Airborne Express From: Strategic Analyst Re: Recommendations and Implementations for recent issues in Airborne Express Executive Summary: Airborne Express has many options available for sustainable growth and success in the coming years. After the recent 29% increase in revenue over the past year‚ there are opportunities to take into consideration that will boost this growth for the fourth quarter. This company should join the “industry
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AIRBORNE EXPRESS: THE UNDERDOG CASE STUDY QUESTIONS 1. Analyze the United States small package express delivery industry in the 1990’s using the Porter’s Five Force Model. Rate each of the five forces as either weak‚ moderate‚ strong or fierce. Justify your rating by using two factors under each force and describing how these factors affect the strength of the force. The Bargaining Power of Buyers The bargaining power of the buyer was somewhat moderate-to-slightly strong due to the
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this case study is to help Airborne Express with its strategy formulation and implementation. Statement of the Problem and Objective Problem: Decline in the market share of Airborne Express in the volume of overnight deliveries. Objective: To become one of the top three companies in the express carriers industry. Alternative Courses of Action ● Not compete with established competitors like FedEx and UPS‚ and stress the reliability of its delivery schedules. ● Expand Airborne Express
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HBS- Airborne Express Background Information Seattle based Airborne Express was the third largest express mail business in the 1990s. The product of two specialist airfreight carriers‚ Airborne Express began operations in 1968 and targeted businesses requiring regular‚ high-volume shipments of urgent items. Airborne maintained low cost operations by focusing on efficiency. We discuss how the express mail industry evolved throughout the 1990s and what Airborne did to remain competitive. How and
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______________________________________________________________________________ Executive Summary: Airborne Express the current underdog in the express mail business has been able to compete with market leaders due to innovation and optimization strategy. The company built on cutting cost and emphasizing reliability now faces pressure from the leaders UPS and FedEx to change their pricing strategy. This change from standard rate pricing to distance-based pricing puts Airborne in a dilemma in which they must choose to match the competition
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Business School 9-798-070 Rev. May 23‚ 2007 Airborne Express The officers of Airborne Express could hardly be more pleased.1 Results for the third quarter‚ 1997‚ were spectacular. Revenues for the quarter were up by 29% over the previous year‚ and yearto-date net earnings had increased by more than 500%. Airborne’s management team knew that the great results were‚ in part‚ fleeting. As the third largest player in the express mail industry‚ Airborne had gotten a boost from the recent strike at rival
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Statement of Purpose The group aims to identify the generic strategy Airborne Express is pursuing‚ whether such strategy is sound in the context of air express industry. The company’s strengths and weaknesses are evaluated with the opportunities and threats to identify the distinctive competency that it can adapt. Statement of the Problem The group endeavors to identify the strategy that Airborne Express can implement to its domestic and international operations. Assessing the strategic
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