Airborne express

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

Airborne Express: Analysis of HBS Case Study Q1) 1. Threat of New Entry For the US Express Mail industry, the overall threat of new entry is very low. The following list and explanation captures the difficulty an entrepreneur might face in trying to penetrate the express mail market: * High capital requirements: In order to establish an express mail operation, the start-up capital required is too big for an individual to obtain. For example, Federal Express’ Superhub in Memphis has

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.

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

Q1) What is the industry attractiveness like in 1997? Has it changed in recent years? Q2) Does Airborne Express have a competitive advantage? Is it sustainable? Q3) What recommendations will you give Airborne Express? ---------------ESSAY START ------------------ Industry Attractiveness in 1997 The industry is defined as the Domestic US Express Mail industry. This includes overnight and second day delivery. In order to assess the attractiveness of the industry, a Porters' Five Forces analysis

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

Exhibit: Five Forces Outline 1. Barriers to Entry—Medium to High for the following reasons: a) Economies of scale—the top three carriers (Federal Express, UPS, and Airborne Express) serve slightly more than 85% of the domestic express mail market. All three carriers deliver a high volume of packages, and thus, are able to spread fixed costs over more units. Also, each carrier has integrated technological systems that improved operational efficiency. In addition, intensive training programs

______________________________________________________________________________ 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

Issue. 1. The strategic issue for Airborne Express focuses on how it should maintain its positioning within the industry or how to strengthen it. The severity of competition within the industry between the largest players mandates Airborne Express to monitor its competitors’ activities and to adjust appropriately to them in order to maintain its market share. This forces the company to either increase efficiency in current operations or expand on them. Airborne Express’ strong, recent financial performance

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