Case Discussion:
Airborne Express
Prof. Jan W. Rivkin

prospered. It did so by targeting a subset if customers with particular needs and tailoring its every activity to meet those needs uniquely well.   . The differences in activities between Airborne and its rivals created a 20% cost advantage for Airborne. at times. Airborne survived for years and.+ Synopsis  Despite being one-ninth the size of its largest rival in an industry with significant economies of scale.

who hold 70% market share. and Roadway Global Air exited the business after losing hundreds of millions of dollars. Small players have struggled. Emery/Purolator and BAX were pushed to the periphery of the market.+ Dynamics of the Express Mail Industry  The express mail industry in the United States is dominated by FedEx and UPS. Why is this such a tough market for small players? Why are there benefits of being big in this business?  .

How do we make sense of that? How would you characterize the competition between FedEX and UPS? Why is the rivalry between these two companies so fierce?   .+ Dynamics of the Express Mail Industry  It looks very costly to ship a handful of units. Yet FedEx entered this business at a very small scale (186 packages the first night) and even started to make money at a small scale.

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