Airborne express case study

Q1. How and why has the express mail industry structure evolved in recent years? How have the changes affected small competitors?

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

Q1) What is the industry attractiveness like in 1997? Has it changed in recent years?

Goals in the company are to find the right product for the customer’s particular needs and build a relationship with the customers

This is an open exposure due to the uncertainties of the internet. Controlling access to information systems and associated networks is necessary for the preservation of their confidentiality, integrity, and availability. Confidentiality assures that the information is not disclosed to unauthorized persons or processes. Any automated attacks or personal attack or attack to exploit the company secrets/statistics/data is the biggest threat to that may occur without the firewall.

The company should target to serve the large customer base with better profit margins and also choose to serve those small customers who are willing to pay the targeted price per kit.

Firstly, Airborne Express chose its customer very selectively and pursued a emphasis on low price strategy. The main target customer for airborne was the high volume, frequent, service; consistent with flexible environment and price is the main competitive weapon. Airborne was essentially the custom solution logistics providing for larger companies and therefore, they did not target the masses. By focusing on large accounts, Airborne could use its ground capacity more effectively. Airborne delivery drivers dropped off and picked up far more packages per stop than do the drivers of companies that focus on serving smaller customer and individual customers. This helped boost productivity and lowers costs and make a profit at a price. Secondly, the strategy of concentrating on corporate account was strong point, since it leads to better capacity of operation and lowers the cost. The company’s incentive systems were designed to rewards employees for meeting the dual goals of high productivity and reliability. Airborne’s national and international tracking systems were the best in the industry. These assisted Airborne to tell customers at a moment’s notice where in the system there packages are. This helped improve reliability and build brand loyalty. The same information systems helped Airborne to efficiently manage its billing system, thereby lowering costs.

The express companies delivered tremendous amount of packages. The big three players, Federal Express, UPS, and Airborne Express, collectively delivered more than five million

1.How and why has the express mail industry structure evolved in recent years? How have the changes affected small competitors?

American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.

When customers seek for a specific product or service, they obviously want the company to be responsible and well organized. A customer wants to be able to trust the company in which the company delivers everything correctly and the way the costumer wants. When all the customer wants and needs are met, the customer will be to determine which company fits best.

First, we will analyze the targeted customer and the proposition designed by each company to attract them. In this part, there is a description of each market target and how each company has taken advantage of each unique position in the industry.

Launched just 8 years ago, today, the Jetstar Group consists of a network of value-based air carriers that deliver high quality air passenger services for budget-minded travelers across Australia, New Zealand and the Asia Pacific region. Beginning with just 400 employees, the company currently employs more than 7,000 people and carries about 20 million passengers a year. To gain some insights into how the Jetstar Group achieved this impressive growth in such a short amount of time, this paper provides a review of the relevant literature concerning the air passenger industry in general and the business strategy used by the Jetstar Group in particular. A summary of the research and recommendations for this company are provided in the paper's conclusion.

Fourthly, The Airborne maintained low prices, provided tailored services and achieved higher efficiencies and lower cost in order to long run and remain competitive in the market. So, Airborne targeted business customers who shipped frequently and was able to better serve them through repetition and experience including using customization codes to provide tailored service to specific large business accounts. Moreover, Airborne had a high concentration of customers in metropolitan area and a high percentage of afternoon and second day deliveries, permitting it to use ground shipping more often than its competitors and save up to two-thirds the cost of air shipping (Exhibit 8). Finally, Airborne had total control of its airport hub, which is design as per the needs and expand to enclose warehouse space for its business customers. Furthermore, Airborne achieved greater efficiency in its shipping by utilizing 80% of shipping space therefore; Airborne lowered cost not having retail service centers, using independent contractor van services and it was more efficient by picking up and delivering more parcels per stop than FedEx. Hence, Airborne becomes a stronger competitor in the market due to low prices and provided excellent service to the customers.

In today’s world, the present of an increasing in competition between organizations could affect the structure within the organizations itself, as they feel the need to be responsive to their competitor's threat (Finn & Lev-Ram 2009). We will further discuss between two airline organizations, which known as Mega Melayu and Air Semenyih; both provide carrier/ freight services within nations. There is also a government involvement to seek for a betterment in the nation’s freight services. Since there is a present of competition within the market, hence, it is important to take a proper approach.