Airborne Express 1. The US express mail industry consists of three main market players (UPS‚ FedEx and Airborne) and six second tier players. The industry evolvement from the perspective of customers looks like this: By time more and more people became used to express mails and many businesses for which express mails are an inseparable part‚ are high-volume customers. The major reasons for customers to use express mails are urgency of the shipment and the price. Also‚ for time-sensitive products
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Case 8 Airborne Express: The Underdog 1. What generic strategy is Airborne Express pursuing? Justify. Is this a sound strategy in the context of the air express industry? Why or why not? Entrance barriers (high): it is hard to entry this industry‚ the top three carriers already dominate 86% of the industry. And it need a large scale of capital to entry this industry. For instance‚ with the development of business‚ global express demand increases. Airborne Express international strategy can
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Airborne Express Written Case Analysis Express Mail Industry Structure The environment of the express mail industry has experienced drastic changes over the past decade‚ let alone since its inception in the 1900’s. As a result of changing tastes amongst consumers‚ the industry has adopted practices that have allowed it to perform more efficiently in terms of geographic scaling‚ product assortment of goods being transported‚ meeting customers varying needs‚ as well as enhancing the range of
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1) How and why has the structure of the express mail industry evolved in recent years? How have the changes affected the small competitors? How has the rivalry between FedEx and UPS impacted them and the rest of the industry? - The face of shipment industry changed drastically with the proliferation of many services wherein companies offered next afternoon delivery‚ second day services‚ third day deliveries and pricing these options on the basis of delivery time. - Shipping volumes had increased
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Discussion Questions:1. Using the Value Chain Analysis‚ identify the primary & support activities of AirborneExpress. First I ’m going to tell something about the primary activities of Airborne Express. The primary activities exist of inbound logistics‚ operations‚ outbound logistics‚ marketing and sales‚ and as last after-sales service. Inbound logistics: They use road and air. After the pick up‚ it goes to the major hub in Wilmington. Operations: The operations are the delivery of approximately
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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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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 ’ business globally
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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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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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