Airborne Express Essay Example

is high-volume that is large quantity. The express industry is low switching cost. Bargaining power of suppliers (low): the company just purchase used truck and airplane from big company, and Airborne have their own system for planes and vehicle repair that reduce the cost. Airborne design C-Container to fit the most airplane passenger door. The raw material such as fuel cannot control by any company. In summary, the input is little depending on supplier. Threat of substitute products (low): the substitute’s product is e-mail, fax or other new technology.

There is no substitute product for package delivery.

2. What are the strengths of Airborne Express? Does it have a distinctive competency? Are these strengths (or competencies) imitable? The strength of Airborne including: Airborne Express has its owner airport hub, tax-free zone; C-container and 80% capacity of Airborne’s plan; More flexibility pickup schedule, focus on high-volume customer and more flexible to satisfy their need; the low price reputation; Purchase used airplane and truck and maintained by their company; in summary, flexible cost structure is the distinctive competency.

Airborne invest little in the technology, and their purchase is used that is try to reduce cost. The international strategies of Airborne is using other company airplane or passenger’s airplane and cooperate with foreign company, not as like UPS and FedEx. The biggest two competitor is hard to imitate Airborne model but some small company is easy to imitate.

3. What are Airborne’s weaknesses? Airborne’s weaknesses include: Niche market but rivals servicing whole market; it doesn’t express residential interest.

FedEx and UPS stringent time provisions, they provide earlier overnight grantee delivery than Airborne; FedEx

and UPS provide more quality service than Airborne, FedEx and UPS with large capital to operate international business compare with Airborne, so they can easily control the cost and quality of the service reduce the probability of drop the packages; UPS and FedEx occupied more market share than Airborne; UPS and FedEx invest new technology.

4. Is Airborne’s strategy of trying to diversify its product offering to include logistics services for clients wise?

Why or why not? In my opinion, it is wise to diversify logistics. With the development of company, the new service provides is necessary to extend the capability of the company. Airborne has the advantage that its own airport hub to build stock exchange facility. The management strategy make the company reduce cost. The demand of customer makes Airborne to provide this service. I cannot rebut that the logistics services face the hard competition, however it can efficient use the facility they already have like ground delivery service and air delivery service.