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  • Strategic Management I: Airborne Express

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    swathi kiran kumar DODDI
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    This document discusses the parcel delivery industry in the United States and compares FedEx and Airborne Express. It outlines the core competencies and resource bases of each company. For FedEx, its core competencies include the hub and spoke model, focus on overnight shipping services, and advanced technology. Its resource base includes over 129,000 employees and 600 aircraft. For Airborne Express, its core competencies included targeting specific customers and relying more on human labor than automation. Its resource base included over 12,700 employees, 175 aircraft, and 11,000 drop-off boxes. The document recommends areas for Airborne Express to improve such as distance-based pricing and targeting the retail customer segment.

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    Airborne SecB Grp05

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    Airborne SecB Grp05

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    This document discusses the parcel delivery industry in the United States and compares FedEx and Airborne Express. It outlines the core competencies and resource bases of each company. For FedEx, its core competencies include the hub and spoke model, focus on overnight shipping services, and advanced technology. Its resource base includes over 129,000 employees and 600 aircraft. For Airborne Express, its core competencies included targeting specific customers and relying more on human labor than automation. Its resource base included over 12,700 employees, 175 aircraft, and 11,000 drop-off boxes. The document recommends areas for Airborne Express to improve such as distance-based pricing and targeting the retail customer segment.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    15 views6 pages

    Strategic Management I: Airborne Express

    Uploaded by

    swathi kiran kumar DODDI
    This document discusses the parcel delivery industry in the United States and compares FedEx and Airborne Express. It outlines the core competencies and resource bases of each company. For FedEx, its core competencies include the hub and spoke model, focus on overnight shipping services, and advanced technology. Its resource base includes over 129,000 employees and 600 aircraft. For Airborne Express, its core competencies included targeting specific customers and relying more on human labor than automation. Its resource base included over 12,700 employees, 175 aircraft, and 11,000 drop-off boxes. The document recommends areas for Airborne Express to improve such as distance-based pricing and targeting the retail customer segment.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 6

    STRATEGIC MANAGEMENT I

    AIRBORNE EXPRESS
    Group 5
     K Srivatsav 18PGP081  Mounika Spoorthy 18PGP100
     Navin Kumar 18PGP106  Manjiri 18PGP092
     Sai Sachin Lingala 18PGP084  Pooja Yadav 18PGP136

    08-02-2019
    Indian Institute of Management Raipur
    PARCEL DELIVERY INDUSTRY

    UNITED STATES POSTAL


    SERVICES:
    • Inefficient package tracking
    • Worse on time delivery record
    • Volume discounts – Prohibited by law
    UNITED PARCEL SERVICES:
    • Messenger services -> Department stores delivery-> Common carrier
    • First air service in 1929 (Ground services for national air express co.)
    • 1953, two day delivery service by air
    FEDERAL EXPRESS
    • First dedicated airline for mail delivery
    • Cutting edge information and logistics technology
    • Heavily regulated airline industry
    AIRBORNE EXPRESS
    • Own airport facility
    • Customer selective and cost leadership

    08-02-2019
    Indian Institute of Management Raipur
    FEDERAL EXPRESS

    CORE COMPETENCIES:
    • Hub & Spoke Model – First movers advantage
    • Focussed Target Market
    • Overnight Shipping service
    • Technology (COSMOS, DADS)

    RESOURCE BASED
    VIEW:
    • Tangible
    • 129,000 Employees, 38000 ground vehicles
    • 600+ airfleet ~ 2.8 million packages a day
    • 1400+ retail stores, 32000 drop-off boxes
    • Purple & White Envelopes
    • Intangible
    • Culture – “People, Culture, Profit”
    • Communication service
    • Customer service training programs
    • Marketing ~ 138 million expense, 1100 sales rep
    08-02-2019
    Indian Institute of Management Raipur
    AIRBORNE EXPRESS

    CORE COMPETENCIES:
    • Target customers
    • Airport as major hub
    • Used Trucks for long haul delivery
    • Owned and operated only a portion of its delivery vans
    • More reliance on human labour than automation to suit customised services
    • Technology (Freight online control & update system(FOCUS)

    RESOURCE BASED
    • VIEW:
    Tangible • Intangible
    • 12,700 Full time Employees, 8000 Part time • Culture – “People, Culture, Profit”
    Employees • Advertising to logistics managers with the
    • 13300 Ground vehicles help of sales managers
    • 175 air fleet ~ A million packages a day • Company reflected humility
    • 11000 drop-off boxes • Marketing ~ Logistics managers, 500
    • Purple & White Envelopes sales rep

    08-02-2019
    Indian Institute of Management Raipur
    RECOMMENDATIONS

    CORE COMPETENCIES:
    • Opting distant based pricing
    • International Operations
    • Target newer market - Retail customer segment
    • Forge relationship with RPS

    08-02-2019
    Indian Institute of Management Raipur
    Thank you!

    08-02-2019
    Indian Institute of Management Raipur

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