Airborne Express Value Chain
Airborne Express has created a value chain that has all of the parts that Porter described in his book. Management has done an excellent job of organizing the value chain and realizing who their target market is. Although it may seem like Airborne Express is leaving revenue on the table by only providing services for a select group of customers, it is a good decision on the part of management to limit the customer base to only those customers which you can best provided quality service for. The five elements of the value chain are: inbound logistics, operations, outbound logistics, marketing and sales, service. Airborne Express uses all of these elements very effectively in order to be successful. Efficiency of inbound and outbound logistics are essential to Airborne Express’s operations. These logistics allow Airborne Express to receive all of the packages that they are responsible for and sort them according to where they are going in the operation stage. Airborne Express’s marketing and sales staff has freedom to set prices, this allows them to adjust prices to make Airborne Express a better fit for their customers than any of their competitors. The last of the primary activities of the value chain is service. Airborne Express strives to provide excellent, customized service to all of its customers and this is what differentiates it from the competition. It is through good management of this value chain that has allowed Airborne Express to compete with the other larger companies in the industry.
Please join StudyMode to read the full document