Airborne Express Case Study

Powerful Essays
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, Airborne’s costs have been substantially lower than the industry norm, which has allowed it to supply their services at a lower price to the consumer.

Customer Group
Early on, Airborne targeted the business customer that regularly shipped a large volume of urgent items, primarily to other business locations. A typical customer was Xerox, which had to deliver parts daily from central warehouses to repair technicians, who were spread throughout the United States. In 1995, Ray Berry, Vice President of Field Services Administration indicated the reasoning behind this approach, stating:

“There’s an advantage in our being selective about the customers we serve and the services we offer. The customer needs we have targeted to fill are what we are best at. If, for example, we had large mail-order customers requiring nothing but residential delivery, we might not be able to serve them as well as we know how to serve IBM or Xerox. Since we can’t be all things to all people, we pick our kind of customer deliberately.”

This statement fully represents Airborne’s desire to serve a specific customer base and its commitment to ensuring this group was served well. Other Airborne customers include; Nike, Compaq, and Technicolor. Shippers and recipients of Airborne parcels are concentrated in major metropolitan areas, which are consistent with the customer objectives portrayed by Ray Berry’s statement. In identifying these large clients who coalesced with the objectives

You May Also Find These Documents Helpful

  • Better Essays

    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.…

    • 1571 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    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…

    • 1504 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    Airborne Express Case

    • 1775 Words
    • 8 Pages

    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…

    • 1775 Words
    • 8 Pages
    Better Essays
  • Good Essays

    Airborne Express

    • 720 Words
    • 3 Pages

    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…

    • 720 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Airborne Express

    • 700 Words
    • 3 Pages

    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…

    • 700 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Airborne Express

    • 784 Words
    • 4 Pages

    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…

    • 784 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Airborne Express

    • 550 Words
    • 3 Pages

    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…

    • 550 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Airborne Express

    • 1084 Words
    • 5 Pages

    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…

    • 1084 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Airborne Express

    • 1765 Words
    • 8 Pages

    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…

    • 1765 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Executive summary Airborne Express is the third largest and fastest growing international air express delivery company in America. It held roughly 16% of the domestic express mail market by 1997. It provides time-sensitive delivery of documents, letters, small packages, and freight in the United States and internationally. The company has several advantages over its rivals, such as it provides delivery services at a lower cost of up to 20% over FedEx and UPS; it operates the nation’s only privately…

    • 2216 Words
    • 9 Pages
    Powerful Essays