Airborne Express: Analysis and Recommendations Dr. Denesh Iyer
Prepared by: Jeremy Lipp Yijia Liu David Marano Brittany Meglich Daniel Perko Lauren Scott Dongli Zang
Executive Summary Airborne Express faces a critical time for their company, as the two “900-pound gorillas” are aiming to secure their position atop the delivery industry. As the competitive landscape of the industry begins to shift, Airborne Express has the opportunity to capitalize on making some changes in the way the company positions itself amongst its competitors. As United Parcel Service (UPS) nears the end of their strike and with the Postal Service getting closer to gaining the right to grant volume discounts, this is an opportune time for Airborne to recalibrate their approach and establish a niche within the industry. The best way for Airborne to position itself for future success is as follows: • • • • Merge with Roadway Package System (RPS) Adapt their current van operations to RPS Increase the sales force and assign sales territories Increase their marketing for small business shipping.
While we believe implementing these actions will greatly benefit Airborne Express for the future, they also present new problems that the company must also find solutions for. These new arising problems consist of: • • • • • Merging of both company’s management Training costs for the new sales team Employee backlash Problems with integrating the information systems Potential repercussions from both UPS and FedEx
All in all, although new problems will arise that must be appropriately dealt with; we firmly believe that if Airborne Express follows our recommendations closely, that they will put themselves in a prime position to succeed for the foreseeable future. Moreover, with the success of the recommended model, it can easily be adapted to fit international markets, which coupled with their standing as the only privately owned foreign trade zone in the United States, could prove to be a...
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