AIRBORNE EXPRESS Economics of Strategy and Organization 1 Why has the express mail industry been so difficult for smaller players? Small players like BAX GLOBAL‚ DHL WORLDWIDE EXPRESS‚ TNT‚ etc. lacked resources to expand their base. Fed Ex had huge hub facilities with 2.4million square feet of floor space. Smaller players focused on segments rather than the whole market on the whole. BAX GLOBAL focused on heavy cargo and was not considered competitive for overnight letters. RPS targeted
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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 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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Q1) What is the industry attractiveness like in 1997? Has it changed in recent years? Q2) Does Airborne Express have a competitive advantage? Is it sustainable? Q3) What recommendations will you give Airborne Express? ---------------ESSAY START ------------------ Industry Attractiveness in 1997 The industry is defined as the Domestic US Express Mail industry. This includes overnight and second day delivery. In order to assess the attractiveness of the industry‚ a Porters’ Five Forces analysis
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EXECUIVE SUMMARY Summary Analysis: Airborne express has been making good profits for few years now and has 16% of express mail market share. The company follows the “best cost provider” strategy‚ meaning provides best price to the customer compared to rivals by maintaining good product attributes. Another key strategy of the company is focus on niche markets. The company ensures to have a sustainable competitive edge in the market by providing the lowest cost. However‚ the competition from
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The air express industry is no exception. FedEx‚ the leader in the air express industry since the late eighties‚ is also leading U.P.S. in the race to become decentralized. Airborne Express is not even in the race. In order to compete in today’s changing environment‚ Airborne Express needs to move away from its old fashioned centralized structure and form a more decentralized structure. The old fashioned structure is not the only variable that makes Airborne the follower in the air express industry
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AIRBORNE 3 a) Airborne was very selective about the customers it served and the services it offered. Airborne targeted business customers that regularly shipped a large volume of urgent items and passed over residential deliveries and infrequent shippers. Operational Activities: Unlike Federal Express and UPS‚ Airborne owned the airport that served as its major hub. As a result‚ it did not pay landing or facility fees but had to maintain the airport itself and did not share the expenses with
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Has Airborne Express Achieved a Sustainable Competitive Advantage? Base on financial power and company size‚ Airborne cannot be aligned with FedEx and UPS. However‚ Airborne could successfully grow faster than its competitors for series period of time and positioned itself behind those two giant firms. The keys successes are resulted from Airborne’s abilities to discover its competitive advantage. However‚ to label Airborne for achieving sustainable stages‚ we need to analyze of Airborne’s external
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The 13th Airborne Division was an airborne formation in the United States Army during World War II‚ and was commanded by Major General Eldridge Chapman.[1] It was officially activated in August 1943 at Fort Bragg in North Carolina‚ remaining active until February 1946‚ but never saw combat. After activation the division remained in the United States to complete its training. This training was completed by September 1944‚ but had to be extended by a further four months when the division provided
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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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