Airborne Company Case Study

One of the key decisions of Airborne Express was to target regularly shipping business customers and purposely passing over residential deliveries and infrequent shippers. Ray Berry, vice president of Field Services Administration, commented this selection of customers: “ Since we can’t be all things to all people, we pick our kind of customer deliberately.” And it

During the 1980s, the air express industry was a medium to attractive industry to already be a major player in, but not a very attractive industry to try and break into. The industry can be characterized by high rivalry from competitors who compete on the same services with very little differentiation, medium power from suppliers who supply the resources necessary to run the business, high buyer power because customers can basically find an equal service from any firm in the industry, low substitution threat from other means of shipping transportation, and low threat of new entrants due to the high initial capital outlay and need of management

Flight Centre offers a very competitive price. The prices are usually are lower than its competitors when it comes to domestic and international flights. It provides the option of different prices ranges. These price ranges depend on the services that a customer requests. It provides economy class, business class, premium class, and first class price ranges. Due to its affordable prices and good services, it has grown to become a 13.5$ billion business comprising of more than 30 brands. It works had to keep up with the competition by providing best possible prices while ensuring customer loyalty (Flight Centre the Airfare Expert).

What was Airborne’s long term strategy to address low willingness to pay among its target customers?

In terms of pickup and delivery, Airborne did not maintain retail service centres. It hired contractors to handle 60% to 65% of its volume, so it could save cost by owning a lesser portion of delivery trucks. Its courier generally picked up and delivered more parcels per stop than FedEx, reducing labour costs per unit by 20% and 10% for pickup and delivery respectively.

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In a highly competitive industry the structure of a firm is very important to its success. Today firms are moving away from the centralized structure of the past, and adopting a more decentralized structure (Management Challenges in the 21st Century p 315). 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

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Defense campaigns and establishment of air superiority by the Allies played a key role in changing the course of the European theater of World War II. In North Africa, the RAF bombed and defeated German commander Erwin Rommel and prevented him from reaching the vital Suez Canal, which would have gave the Germans access to the Indian Ocean. British aircraft fired their rockets, attacking German artillery and enemy transports. A German Panzer Commander described the failure of his counterattack against aircraft and said, "…they [the Spitfires, Typhoons, and Mustangs] came in hundreds, firing their rockets at the concentrated tanks and vehicles. We could nothing against them and we could make no further progress." In addition to defense on land, the

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If Aircraft Solutions is your choice of flight, they promise and stand by the development and implementation of product support strategies to ensure supportability is considered throughout the system life cycle. Aircraft Solutions is able to provide you with conciliation by coordinating with different types of business units to support production and the development of products whether they be new or existing, maintain documents for all support activities, provide product trainings to staff members, guide teams in working with problems our customers may have, and actually fix the problem. Aircraft Solutions have partnered up with Boeing engineers to create a spreadsheet that shows the performance analysis of new products and enhancements,

If these companies were to gain first-mover advantages, then Airborne could be shut out from the international market. The final threat stems from UPS’ next move to recoup its losses experienced during strikes. Airborne must be cautious in order to sustain its customer base, by adjusting accordingly to UPS’

By looking at all the data showed by the case we can realize that the worst company in the industry of aircraft manufacturing was McDonnell Douglas because it confronted serious financial problems since 1980s when Airbus squeezed its market share. In 1984, MD's fleet comprised 28% of aircraft in service, by 1989 had only 23% of the worldwide fleet, while for example Boeing had 53% in the same year; in 1990 Boeing had 45% of the market share while Airbus had 34% leaving only 21% of the market to MD. The strongest company was Boeing which cover about 70% of worldwide demand, nevertheless the Airbus Industry was

Airborne Express has long differentiated itself in the market by structuring itself as a big business only carrier. They have specialized in large unit deliveries through metropolitan areas. Everything they do is aimed to optimize the delivery process and slash cost where ever possible. However, Airborne is now faced with a huge decision. They must decide whether to step away from their differentiation strategy to match the new pricing tactics of the market UPS and FedEx or to continue the old norm of delivery pricing. The new distance-based pricing strategy threatens Airborne’s consistent strategy to cut prices. Clients will seek to ship packages at the lowest cost. The short distance deliveries will be ruled by UPS and FedEx since they are the once who are

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 trend” of distance-based pricing. This will result in higher revenues, and will give Airborne Express a more substantial budget to merge with Roadway Package System in order to create a more technologically advanced tracking system. This