Airborne Express‚ an air express transportation company has succeeded to compete with a few big competitors such as Federal Express and United Parcel Service (UPS) even it does not have funding as much as its competitors. In 1996‚ it held third position in the industry with 9 percent of the market. Even Airborne is smaller size company compared to its main competitors‚ it still can survive with the competitive advantage through its resources and capabilities. With some unique resources and core competences
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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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Airborne Express Case Study Evaluation of Business Leading to Sustained Superior Performance September 24‚ 2010 J401 Airborne Express’ Strategy: Value Mix Airborne considers itself as “the flexible‚ solution-oriented express carrier” with an ability to tailor its services to the needs of particularly large business customers - providing low cost‚ next day‚ and second day deliveries. In this way‚ Airborne has asserted itself using a Cost-Leader strategy (please see appendix 1). Continually
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Airborne Express and Husky Injection Molding Systems Airborne Express 1. Perform a five-forces analysis of Airborne Express’ industry. Forces | Items | Power | Rivalry | * Big competitors are FedEx and UPS; * Smaller competitors like BAX Global‚ DHL‚ Worldwide Express‚ Emery Worldwide‚ RPS‚ TNT Express‚ Worldwide‚ and US Post Service | Keen competition with big competitors as they account for the lion’s share of the market | Entry barriers | * Economy of scale * CAPEX on IT‚ facilities
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Service (UPS)‚ Federal Express‚ and Airborne Express. Combined‚ these “Big Three” ship more than 5 million packages a day with over 98% of which arriving on time. The impact that the express mail industry has made on the U.S. economy in terms of technology‚ logistics support for small business‚ and the overall movement of goods has far exceeded the expectations of many since its origination in the 1970’s. The case at hand dives truly dives into‚ not necessarily the phenomenon of express mail‚ but who were
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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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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
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______________________________________________________________________________ Executive Summary: Airborne Express the current underdog in the express mail business has been able to compete with market leaders due to innovation and optimization strategy. The company built on cutting cost and emphasizing reliability now faces pressure from the leaders UPS and FedEx to change their pricing strategy. This change from standard rate pricing to distance-based pricing puts Airborne in a dilemma in which they must choose to match the competition
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Airborne Express Tigran Hakobyan To answer the questions of this case let’s first of all understand the overall industry where the company is operating. In general‚ we can state that there is a strong competition between firms in this industry. Firms provide similar services and also the degree of substitutability is high. Profit margins are relatively low. The threat of new entrants is low because market for express deliveries is difficult to access‚ capital requirements are high and also
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AIRBORNE EXPRESS Economics of Strategy and Organization 1 Why has the express mail industry been so difficult for smaller players? Small players like BAX GLOBAL‚ DHL WORLDWIDE EXPRESS‚ TNT‚ etc. lacked resources to expand their base. Fed Ex had huge hub facilities with 2.4million square feet of floor space. Smaller players focused on segments rather than the whole market on the whole. BAX GLOBAL focused on heavy cargo and was not considered competitive for overnight letters. RPS targeted
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