Airborne Freight Case Study

Paper Summary:

This case study examines the express mail industry through a look at the three major firms. It presents an overview of Federal Express, United Parcel Services and Airborne Freight, and discusses competition in the industry. It addresses Airborne Freight's current position in the market and offers suggestions for how the company can strengthen and sustain their competitive position.

Table of Contents
Five Forces Analysis
Positioning Analysis
Cost Driver Discussion
Value-Chain Analysis
Discussion on Questions/Issues
Bibliography

From the Paper:

"In 1971, Federal Express pioneered the idea to take the time-sensitive packages and letters of customers and have them delivered safely and punctually to anyone, anywhere in the world. Its orchestrated transportation modes and the ability to track the whereabouts of packages from any place in the world, truly "made the world small." The market acceptance of this new package delivery concept lead to a number of firms entering the market, but dwindling down to three major contenders. The major competitors in this industry are defined as Federal Express, the pioneer in the express package industry; UPS who was shook from its slumber by the success of Federal Express in the 1980's and 1990's and Airborne Freight that successfully moved into the express mail industry after numerous years in the perishable delivery business. FedEx has worked at a fast pace to stay ahead of its competitors and since UPS joined the express business in 1982 it has leverage its huge profits from their non-express ground business to subsidize their competition. Because of the stiff price competition, the express market has become much more price sensitive."

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