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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In the year 2004‚ the U.S. domestic express delivery market worth $45 billion. Mainly‚ this vast market is divided between the two major package delivery companies‚ United Parcel Services (UPS) and Federal Express Corporations (FedEx). This service is consists of three categories: 1) Weights: Letters‚ Packages‚ Freights 2) Mode of Transit: Air‚ Ground 3) Timeliness: Overnight‚ second-day‚ 3-day delivery‚ regular delivery (4 or more days) The air-express portion of the entire U.S. market
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Federal Express established itself as a key player in the competitive airfreight industry‚ just three years after beginning operations‚ as a direct result of its unique strategic hub system and a policy of limiting package size to under 70 pounds. By capitalizing on this strategy‚ FedEx was able to boost its average delivery volume in 1976 to 20‚726 packages per day via its three services‚ Priority-One‚ Standard Air‚ and Courier Pack‚ compared with an average of 10‚521 delivered daily the prior
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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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Qixun Express Service Company A Case Study • • China Post Intra city Express Mail Service (EMS) Inter city Service International Service China Post EMS Beijing Operation 23 Express routes to pick up and transport express and international mails. Mails were collected at 11:30 A.M.‚ 3:00 P.M. and 7:30 P:M Intra city Express mails arriving at processing center were immediately unpacked‚ stored and repacked for delivery by special handlers Express Mail typically arrived
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INTEGRATED ACCOUNTING NARRATIVE Business Strategy Document – Express Courier Service 1.0 Opportunity The express courier industry for small to large packages can be divided into two groups; large international multi-diversified companies and small local operators. There is a current need for further capacity in the provision of courier services for medium – large boxes (spare parts‚ equipment‚ furniture etc) within the Sydney metropolitan area. The large international courier companies fulfill
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DHL Express has teamed up with Malaysian postal operator Pos Malaysia to offer a new international express service for shipments to and from the south-east Asian country. The new service‚ PosPriority Express‚ is being offered through PosLaju‚ the postal group’s courier unit. DHL will provide the international express delivery service and customer service‚ while PosLaju will be responsible for sales. The new product offers international express delivery of 5kg‚ 10kg and 25kg boxes. It is initially
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Analysis of Fed Ex Company The Fed Ex Corporation is in the air express industry. In this area of industry customers ship their packages over distances by airplane‚ but there are companies who compete with Fed ex‚ because they compete for the same business. Each company battles for customers‚ which provides better service and new services. They integrate new ways to handle their business. They even lower costs that creates bigger economics to scale‚ it reduces operating costs.
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Q: Do you think Courier Pak is a good fit or a bad fit for Federal Express? Why? The Courier Pak was a good fit for Federal Express (FEC) from an environmental‚ company‚ cost‚ and competitive standpoint. The business environment of the mid 1970s airfreight industry played almost directly into the relative strengths of a small-package air service like FEC. As stated in the case study‚ "Bulk products and commodity goods were rarely sent by air. Indeed‚ most air shipments were rather small." This
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EXIT BARRIERS Exit barriers are economic‚ strategic‚ and emotional factors that pre- vent companies from leaving an industry.9If exit barriers are high‚ companies be- come locked into an unprofitable industry where overall demand is static or declin- ing. The result is often excess production capacity‚ which leads to even more intense rivalry and price competition as companies cut prices in the attempt to obtain the customer orders needed to use their idle capacity and cover their fixed costs
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