Airborne Express Case Study

3496 Words Nov 2nd, 2010 14 Pages
Airborne Express Case Study
Evaluation of Business Leading to Sustained Superior Performance

September 24, 2010

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
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FOCUS is an acronym for Freight On-Line Control and Update System.

Federal Express’ Strategy:

Value Mix
In contrast to Airborne Express, Federal Express practiced a differentiation strategy (please see appendix 1). This is evidenced by its service focused shipping experience at a premium cost. It charged high prices, but compensated by providing high levels of customer service.

Customer Group
Dissimilarly to Airborne Express, Federal Express’ customer group is dedicated to both high and low volume shipments. These include some catalog retailers, LTL, small business, and everyday shippers.

Customer Needs
While similar to Airborne in the fact that it serves customer needs with overnight shipping, Federal Express differs in a few ways. It is meeting a global need by participating in international ventures that cover 211 countries and 99% of world GDP – attempting to meet the needs of international customers. Consistent with its higher cost differentiation strategy, Federal Express provided its internal technology at customer sites. The company gave to customers, free of charge, Powership computer terminals and shipping software which allowed customers to prepare shipping paperwork, streamline billing, and track shipments. This product met customer needs by allowing them to track the status of a package, schedule a pickup, prepare paperwork, or print a bar-coded label for a package.

Products and Services
Similar to the aforementioned Powership terminals, Federal

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