Preview

Airborne Express

Good Essays
Open Document
Open Document
550 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Airborne Express
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 by 15-20% over a decade

- Companies tailored their activities for their business customers e.g. Airborne customizing those for Xerox

- High discounts from list prices of 50% were common. These discounts were based on volume, and encouraged customers to focus on one carrier. This ensured competition in the market, and better services for the customers.

- Companies maintained a fleet of vans and drivers, and invested in aircrafts. There was a central hub that was the key factor in overnight shipment deliveries.

All this started around 1973, Fedex commenced service in the express mail delivery services - Being the first of its kind. It shipped 186 packages to and from 25 cities. It revolutionized the express mail segment in the following ways

- A complex technological network to expedite mail deliveries

- Cutting edge offering to customers in terms of internet-online tracking

- Widely recognized for quality improvement efforts, satisfied customers, tracked performance of call centers, aggressive marketing, 1100 sales representatives to canvas business customers and a money back guarantee

- Good to work for... promoted people, no layoff policy, cross trained employees, extensive training programs, Employees with more decision powers - refund upto $2000 without management approval, expected employees to take risks and resolve problems on their own

FedEx and UPS have been the 2 big guerillas in the express mail delivery segment, vying for a share. While FedEx prided

You May Also Find These Documents Helpful

  • Powerful Essays

    The primary long-term trend in commercial transportation is the ongoing improvement of speed, service, flexibility, and area served, with costs declining as a proportion of the value of delivered goods. Shipments that, hundreds of years…

    • 1080 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    UPS Vs FedEx

    • 1115 Words
    • 4 Pages

    This report will analyze the fierce on-going competition between the two companies that have dominated the package delivery service, FedEx Corporation and United Parcel Service, Incorporated. The situational analysis will explain the back and forth battle between in both popularity and profitability as these two companies try to gain market dominance. This part will also analyze the agreement between the United States and China regarding the new air-transportation agreement. Financial analysis will also be used to show that UPS, at the time the case was written, is financially superior to FedEx.…

    • 1115 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    The purpose of this paper is review the current market trends and conditions for FedEx. There are numerous ways that a company can become a success or become a failure. The market trends and conditions are just of those reasons. Team A has analyzed the market trends and conditions by reviewing FedEx's operating structure, competitors, the impact of government regulations, price elasticity of demand, along with a supply and demand analysis.…

    • 4943 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    Fedex vs Ups

    • 4116 Words
    • 17 Pages

    The air express segment was a $25bn portion of the US package-delivert industry, and was concentrated in letters and packages, overnight and deferred, and air or air and ground. Virtually all FedEx business activities were in the air express segment of the package delivery industry, only 22% of UPS’s revenues were derived from its next day air business. FedEx and UPS’s competition for the dominance of the $25bn domestic air express delivery market foreshadowed in an unusually challenging future…

    • 4116 Words
    • 17 Pages
    Powerful Essays
  • Better Essays

    In this report we focus on the two main competitors in the package delivery industry: Federal Express Corporation (FedEx) and United Parcel Service of America, Inc. (UPS).…

    • 974 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Fedex vs. Ups

    • 2478 Words
    • 10 Pages

    Federal Express was founded in 1971. In 1973, FedEx started operations officially and its hub-spoke distribution pattern enabled it to offer cheaper and faster service than its competitors. By 1981, UPS began to enter into the overnight air market and the United States Postal Service (USPS) cut its overnight letter at half the price of FedEx’s. Despite facing such extreme competition in the industry, FedEx could still excel due to change in the business environment. The success of the firm could be attributed to several factors:…

    • 2478 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    Fedex Case

    • 704 Words
    • 3 Pages

    hen Fred Smith finished that valuable paper which finally got a “C” grade while he was studying at Yale University. An adventure of U.S. air cargo transportation– the story of FedEx Express was beginning. Since it was founding at 1971, FedEx Express choose a high-cost development way that was really uncommon at that time. After Smith established the “Super Hub” at Memphis International Airport, Tennessee in 1973, FedEx Express started overnight operations on April 17th. At the same time, FedEx Express used its actions transferred a “super commitment” to their customers: “When it Absolutely, Positively has to be there overnight!” In 1975 FedEx Express installed its first drop box. That means customers can just drop off packages without going to a local branch. Then in 1981, the first international operations started with the service to Canada. The FedEx continue promised: “Absolutely, Positively Anytime.” In 1994, FedEx Express launched Fedex.com as the first transportation web site to offer online package tracking. Until now, the super commitment that FedEx Express gave to all customers – “We live to deliver!” – is really impressed for everybody.…

    • 704 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    The competitiveness of rivalry is high in express mail industry. Big firms, such as FedEx and UPS have dominated the market with its financial power and bigger size. Cause small companies or even new entrance to pessimistic…

    • 328 Words
    • 2 Pages
    Good Essays
  • Better Essays

    When people think of transportation delivery services there are two names that come to mind and that is UPS and FedEx. These two brands are leaders and competitors in the transportation industry and have built a sustainable competitive advantage. When looking at these…

    • 1057 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Airborne Express Case

    • 1775 Words
    • 8 Pages

    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 to name a few. Despite this, the industry could be seen as offering opportunities, which could be seized by attracting customers based on the quality of the service being offered. Consequently, this also encouraged mimicking between competitors to a certain degree, were they would endeavor to secure growth and market share by eliminating the competitors competitive advantage. This was highly contrasted in the services that Federal Express (Fedex) and United Parcel Service (UPS) provided and developed in the 80’s and 90’s. Once a competitor came up with a formula that attracted the attention of potential customers, other incumbents were compelled to follow suit with similar services, or better yet, an improved version. The industry required service providers to invest in a complex and expensive infrastructure to be competitive in the express mail market. To achieve sustainability and a numerable market share, high volumes were important regardless of the high cost of “fedexing”. However, since the items being shipped normally had a high ratio of value to weight, the rates were accepted by customers, making the industry attractive for its high turnover. The attractiveness of the industry can however be carped when on-time delivery guarantees, alleged US Postal Service market manipulation, and emergence of fax and later email technology are taken into consideration.…

    • 1775 Words
    • 8 Pages
    Better Essays
  • Powerful Essays

    | * Big competitors are FedEx and UPS; * Smaller competitors like BAX Global, DHL, Worldwide Express, Emery Worldwide, RPS, TNT Express, Worldwide, and US Post Service…

    • 1943 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Short-term problems include rigid business hours, minimal marketing in the package delivery segment, and alliances with other companies. Extending business hours would allow more flexibility for consumers. Increased marketing in the non-urgent package delivery system would improve business in that segment. An alliance with one or more internet-based companies would help…

    • 1063 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Both FedEx and UPS accounted for over 70% of the total market share. They heavily competed on price, products and customer support. The following points validate the major differences between these two giant firms and why they are close rivals.…

    • 996 Words
    • 3 Pages
    Powerful Essays
  • Good Essays

    D.H.L Logistics

    • 578 Words
    • 3 Pages

    The company offers everycombination of the warehousing solution that a supply chain may demnad of a particular production aspect , which include :…

    • 578 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Express Logistics Market

    • 3108 Words
    • 13 Pages

    This report attempts to understand the express logistics industry from the perspective of both, India and Globe.…

    • 3108 Words
    • 13 Pages
    Powerful Essays

Related Topics