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Airborne Case

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Airborne Express Case 1. How has Airborne survived, and recently prospered in its industry? Please address why you think it was difficult for bigger competitors such as FedEx to imitate Airborne’s strategy. Although Airborne does not get the publicity that FedEx and UPS get, they have managed to remain the third largest player in the express mail industry. One unique aspect that has helped Airborne maintain a leading position in the industry is their ownership of an airport, which serves as their major hub. This is a huge advantage because they have complete control over the timing of each shipment and what comes in and out of the airport. Airborne also purchases and modifies used aircrafts, which saves costs and allows them to run roughly 15% more full than their competitors. Onsite at the airport, Airborne leases out warehouse space to their business customers, which allows for quick delivery on last minute orders. This is a unique offering in which their competitors cannot match without purchasing an airport. Another important aspect of Airborne that helps maintain their position in the industry is their selective process for choosing customers. Ray Berry, vice president of Field Services Administration at Airborne, was quoted stating, “We pick our kind of customer deliberately.” (Rivkin, 11) The company would purposely pass over business with customers who didn’t fit their vision. Airborne mainly targeted “the business customer that regularly ships a large volume of urgent offerings.” (Rivkin, 11) By targeting businesses with large volume shipments they were able to narrow down their target market to specific customers with specific needs. This also allowed them to save money in other parts of the business, such as marketing. Unlike its competitors, Airborne did not advertise in the mass media....

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