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, IPSITA BEHERA, MOHIT GUPTA, NEHA CHAHAL & SHARAD KUMAR SHUKLA opasdfghjklzxcvbnmqwertyuiopasdfg hjklzxcvbnmqwertyuiopasdfghjklzxc vbnmqwertyuiopasdfghjklzxcvbnmq wertyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmqwertyuiopasdfg hjklzxcvbnmqwertyuiopasdfghjklzxc vbnmqwertyuiopasdfghjklzxcvbnmq wertyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmqwertyuiopasdfg hjklzxcvbnmrtyuiopasdfghjklzxcvbn mqwertyuiopasdfghjklzxcvbnmqwert yuiopasdfghjklzxcvbnmqwertyuiopas dfghjklzxcvbnmqwertyuiopasdfghjklz xcvbnmqwertyuiopasdfghjklzxcvbnm qwertyuiopasdfghjklzxcvbnmqwerty
GROUP 7

Q How have the changes affected small competitors? Due to the oligopolistic nature of this industry it is very tough for new entrants to come in. 85% of the market is served by 3 service providers. 2) It is imperative for businesses to facilitate fast information dissemination. 1) A host of services are provided to suit the needs to different businesses. The industry is also characterized by numerous price wars between the 2 giants. the companies do liaison with relevant industries to prevent themselves from fuel hikes. This being so because of the magnitude of their operations. 2) This industry is highly consolidated with only 3 major players-somewhat on oligopoly. namely. 3) Big customers do get volume discounts and can negotiate prices with sales representatives. There are six second tier players who serve the remaining 15%. UPS and FedEx. 4) The inputs to this industry are fuel. Rest of the companies generally follow the trends set by these two firms or fall out. As such there is no brand loyalty. These provide them with low cost alternative to express mail. planes. The terms are dictated by the 2 giants. 5) Business can use fax . Priority is given too early-next and next-morning mails 4) The industry is governed by the rules set by UPS and FedEx. the prices offered are generally the same. FedEx and UPS lead the industry in services and innovation. Overnight shipping and next morning delivery are most popular amongst other services like next afternoon delivery and second day service. however the second -tier six players don¶t pose any threat to these companies. This is because to set up a network and supporting infrastructure will require huge capital investment. There is fierce competition between the 3 big players. The mails are then sorted and then sent off to respective destinations. US Postal one of the second-tier players has a monopoly in first class letters and charges high fee for them. 3) Most players use the hub-and-spoke model. All business and individuals today use this service. however all the major players are known for their reliability and for a new entrant to establish the same will take a lot of time. but due to intense competition. Emails can also be used for the same purpose. customs and permits etc.Q How and why has the express mail industry structure evolved in recent years? The US express mail industry is highly consolidated. The only say that they can switch between the players. telex etc to send important documents. . Express mails have provided a medium for establishing this. However smaller customers have to take what is being offered to them. Major hubs act as collecting grounds for mail from all over America. vans. 1) The entry barriers for this industry are very high.

Airborne invested selectively in technology and banked upon´using competitors as guinea pigs´. which is essentially the use of Internet technology to coordinate all aspects of freight shipping. This would help it in globalizing its brand. It streamlined its supply chain and targeted logistics managers of major shippers using 500 . Airborne should invest more into its international business and should try to widen its reach to new countries. Technicolor and Xerox. As a result. This way it was able to grab major accounts like Nike . and recently prospered. from ordering and pick-up to payment and delivery.Q How has Airborne survived. it neither had to pay landing fees nor did it face to tailor make facilities y It provided warehouse space on the airport site unlike its competitors which was a great attraction for business customers. .       Q What must Robert Brazier. During its naïve stage the company focused on business customers who regularly shipped large volumes of urgent times primarily to other business locations. such as Internet -based logistics. CUSTOMIZATION. Collaboration with RPS helped them to improve their physical distribution system. y Airborne owned and operated only a portion of its delivery vans and rest were contracted which handled 60-655 of Airborne¶s volume. This led to reduced property taxes y It relied less on automation and more on humans than FedEx or UPS. y It also operated the nations only privately owned foreign trade zone in Wilmington. do in order to strengthen the company's position?     Airborne should identify the key growth markets in its industry. in this industry?  Airborne Express was formed out of the merger of two companies named ³Airborne flower traffic association of California(1946)´ and Pacific air Freight (1949). Compaq.person sales force. All this led to run its aircraft 80% full unlike its competitors who utilized 65-705 only y Airborne¶s volume consisted of afternoon and second day deliveries as a result airborne could use truck more often than its competitors. it owned the airport that served as its major hub. This delivery was 105 less expensive than company owned pickup and delivery. y Airborne courier picked and delivered more parcels per stop than a FedEx driver which helped reduce labour cost per unit by 20% for pickup and 10% for delivery. Airborne¶s cost efficiency came from the following factors: y Unlike its competitors. This was their core competency and they could easily bank on it. Both the companies specialized in delivery of urgent times. y Airborne¶s fleet primarily consisted of used aircrafts modified to their own requirements.It positioned as ³flexible. Moreover Airborne¶s patented cargo containers fit through passenger door of an aircraft thereby eliminating the requirement of a cargo door. The cost of a truck was only 1/3rd of owning and operating a similar amount of aircraft capacity. Airborne should think about diversifying its services in various different areas. This was also cost effective because part time wages were roughly $7 per hour. Airborne's President and COO. solution oriented express carrier with tailor made services. CRM-It focused on call centre automation and made sure that many customers would speak to the same service agent each time they called. Airborne should also diversify into business segments other than business customers.

call centre automation more functions online 13300 vans. afternoon delivery. second day delivery). Common Parcel Carrier Target customer segment Summary of productmarket positioning Pick-up & delivery (inbound and outbound logistics) Pick-up->companies convenience. Similar to FedEx and with a back up site in Georgia. Initially not that good but eventually provided services similar to FedEx. Aggressive Marketing. FIRM infrastructure and HRM No layoff policy. Focus software. afternoon delivery. . High wages. IT Cutting-edge information and logistics technology like COSMOS. Procurement International operations Airport as hub .more parcels / stop the other parcel services Airport at Ohio Through sales force no ad on mass media Automated customer service but not having facilities like scheduled pick up and creating shipping Paper work. large sales force and promotional schemes. freedom of making decisions. afternoon delivery. second day delivery). incentive pay as per performance. Overnight(Morning delivery. Pick ±up by customer¶s convenience UPS International and domestic services.Key Differences among Express Mail Carriers Airborne Express Product Line International and domestic services. quality improvement trainings. second day delivery).DADS etc. Operating in 200 countries with operating loss running in hundreds of millions. Highly automated customer service. no retail service centre. Air & hub operations Marketing & Sales Customer Service 8 hubs in US and 5 international hubs. Only residential deliveries no heavy seasonal No automation sorting. Single fleet of Trucks. 1 national Hub. Parcel delivery where time is not much of a concern.ohio airport Federal Express International and domestic services. 175 aircrafts . own a only a portion of delivery vans rest on mile / parcel basis .S and overseas Initial failure. sorting manually done U. Tracking of cargo can be done by customer himself and submission of information electronically . Small Packages for express delivery Air express mail carrying small packages. cross training employees. Business customers. Infrastructure is simple and functional. Overnight(Morning delivery. promote managers. sending large volume of urgent items. 5 regional hub No marketing department but spend 80% more than Federal Express. Overnight(Morning delivery. Focus on intra-Asia shipments to cover 211 countries.no landing fees.