Has Airborne Express Achieved a Sustainable Competitive Advantage? Base on financial power and company size‚ Airborne cannot be aligned with FedEx and UPS. However‚ Airborne could successfully grow faster than its competitors for series period of time and positioned itself behind those two giant firms. The keys successes are resulted from Airborne’s abilities to discover its competitive advantage. However‚ to label Airborne for achieving sustainable stages‚ we need to analyze of Airborne’s external
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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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The air express industry is no exception. FedEx‚ the leader in the air express industry since the late eighties‚ is also leading U.P.S. in the race to become decentralized. Airborne Express is not even in the race. In order to compete in today’s changing environment‚ Airborne Express needs to move away from its old fashioned centralized structure and form a more decentralized structure. The old fashioned structure is not the only variable that makes Airborne the follower in the air express industry
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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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Discussion Questions:1. Using the Value Chain Analysis‚ identify the primary & support activities of AirborneExpress. First I ’m going to tell something about the primary activities of Airborne Express. The primary activities exist of inbound logistics‚ operations‚ outbound logistics‚ marketing and sales‚ and as last after-sales service. Inbound logistics: They use road and air. After the pick up‚ it goes to the major hub in Wilmington. Operations: The operations are the delivery of approximately
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AIRBORNE 3 a) Airborne was very selective about the customers it served and the services it offered. Airborne targeted business customers that regularly shipped a large volume of urgent items and passed over residential deliveries and infrequent shippers. Operational Activities: Unlike Federal Express and UPS‚ Airborne owned the airport that served as its major hub. As a result‚ it did not pay landing or facility fees but had to maintain the airport itself and did not share the expenses with
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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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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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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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AIRBORNE EXPRESS: THE UNDERDOG CASE STUDY QUESTIONS 1. Analyze the United States small package express delivery industry in the 1990’s using the Porter’s Five Force Model. Rate each of the five forces as either weak‚ moderate‚ strong or fierce. Justify your rating by using two factors under each force and describing how these factors affect the strength of the force. The Bargaining Power of Buyers The bargaining power of the buyer was somewhat moderate-to-slightly strong due to the
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