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Air Borne Case

In: Business and Management

Submitted By chocovarun
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Airborne Express
EMI and the CT scanner

Juan Perez Strategic Management
Juan Perez Strategic Management |Airborne Case 1 Strategic Management 6/7/2011

First Case Analysis: Airborne Express
Analysis of the Express Mail Industry: In order to have a clear understanding of Airborne’s position and to make recommendations about future moves, it is critical to examine the industry environment—competitors, customers, and suppliers—and examine the firm internally. To do so, the Porter’s five forces framework and a resource & capability analysis will be utilized. Threat of Substitutes: In today’s aggressive environment, product substitutes are regarded as one of the most threatening forces in competition. In the case of Airborne, it wasn’t the exception. There were other two main players (Federal Express and United Parcel Service) offering similar a similar service –express mailing. The availability of substitutes made the demand for this industry elastic. The case also states that large customers weren’t known for their loyalty for a single carrier, once the contract was up, they look for the best bidder. Threat of Entry: The existent barriers of entry made hard for companies to enter the express mail industry. The costs of becoming established in this industry were so large that discourage potential entrants. For instance, a company entering this industry would have to incur large upfront costs to operate, such as constructing a hub and several spokes, and purchasing a fleet of airplanes. In addition, a potential entrant must spend large amounts on technology (tracking and global positioning systems, information management software, etc) in order to be competitive in this industry. Another barrier of entry in this industry is the economies...

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