In the express mail industry shipment volume was increasing quickly‚ but prices were falling. For this reason total revenues of the industry had been growing by only 10-15% each year and were expected to grow about 10% for the next five to ten years. The customer base of the industry was broadening due to acceleration in the pace of business. However‚ customers of this industry were not very loyal‚ even though discounts based on volume did encourage customers to focus on one carrier. Customers chose
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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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Question 1 asked to complete a five forces analysis of the US Express Mail Industry. A five forces analysis is done to rate the attractiveness of an industry. Threat of new entry is low because the barriers to entry are high. Newcomers to the industry would require an enormous amount of up front capital to set up the distribution networks and infrastructure‚ such as establishing hubs‚ and acquiring aircraft and a large amount of ground transportation vehicles (vans‚ trucks‚ ect). Economies of scale
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1. From the point of view of the industry incumbents‚ is the express mail industry attractive? How has Airborne survived‚ and recently prospered‚ in its industry? Is its success attributable to its capabilities‚ its position‚ or industry attractiveness? The express mail industry can easily be considered an inherently tough industry to operate within given the myriad of factors that come into play‚ such as unions‚ government regulations‚ cost of technological advancement‚ and international borders
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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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How and why has the structure of the express mail industry changed? As express mail has become more commonplace it has become increasingly difficult for companies to maintain revenue growth. The top three companies serve over 85% of the market and competition is fierce. In addition‚ six second-tier players were hungry to make inroads and competition from the Post Office and even e-mail made prospects for large increases in volume unlikely. Investments in overseas markets mostly failed to pay-off
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1.How and why has the express mail industry structure evolved in recent years? How have the changes affected small competitors? The US express mail industry is highly consolidated. 85% of the market is served by 3 service providers. There are six second tier players who serve the remaining 15%. FedEx and UPS lead the industry in services and innovation. The following trends have been observed in this Industry. Services: A host of services are provided to suit the needs to different businesses
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homepage: www.elsevier.com/locate/tre Evaluating competitiveness of air cargo express services Yonghwa Park a‚*‚ Jung Kyu Choi b‚ Anming Zhang c a b c Asia Pacific School of Logistics‚ Inha University‚ Incheon 402-751‚ Republic of Korea Department of Aviation‚ The University of New South Wales‚ Sydney‚ Australia Sauder School of Business‚ University of British Columbia‚ Canada a r t i c l e i n f o Keywords: Air cargo express services Integrators Competitiveness Service factors Analytic Hierarchy Process
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