Marketing and Airborne Express

2133 Words9 Pages
Airborne Express: Analysis and Recommendations Dr. Denesh Iyer

Prepared by: Jeremy Lipp Yijia Liu David Marano Brittany Meglich Daniel Perko Lauren Scott Dongli Zang

Executive Summary Airborne Express faces a critical time for their company, as the two “900-pound gorillas” are aiming to secure their position atop the delivery industry. As the competitive landscape of the industry begins to shift, Airborne Express has the opportunity to capitalize on making some changes in the way the company positions itself amongst its competitors. As United Parcel Service (UPS) nears the end of their strike and with the Postal Service getting closer to gaining the right to grant volume discounts, this is an opportune time for Airborne to
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Service
differentiation
among
 courier
firms
is
limited;
therefore,
Airborne
Express
(AE)
tactically
competes
on
the
basis
 of
low
prices.
In
fact,
Airborne’s
mail
delivery
service
for
letters
and
packages
up
to
10
 pounds
is
the
lowest
price
point
compared
to
its
largest
competitors,
United
Parcel
Service
 (UPS)
and
Federal
Express
(FedEx).
The
services
includes
are
second‐day
delivery,
 overnight,
morning
and
afternoon
delivery.
In
relation
to
UPS
and
FedEx,
AE
occupies
a
 small
market
segment;
however,
among
“second
tier”
competitors,
it
maintains
a
healthy
 position.
Key
issues
facing
Airborne
Express
include
rapid
technology
changes,
adoption
of
 said
technologies,
international
expansion,
business‐to‐business
marketing,
distance‐based
 pricing,
and
the
decision
whether
or
not
to
merge
with
Roadway
Package
System
(RPS).
 The
following
report
will
unveil
these
issues
further,
in
addition
to
recommendations
of
 how
to
approach
these
problems.

 
 
 
 
 
 


Recommendations
 Innovative
Logistics
&
Technology
 To
compete
in
the
express
mail
industry
companies
that
hold
market
share
have
innovative
 technology
and
have
mastered
logistics.
For
Airborne
to
be
successful
within
the
industry,
 they
must
merge
with
RPS
and
adopt
one
of
their
core
competencies
in
superior
 information
and
tracking
capabilities.

The
RPS

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