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Airborne Exprss

In: Business and Management

Submitted By barbnstl
Words 690
Pages 3
Airborne Express Study Questions

1. How and why has the express mail industry structure evolved in recent years? How have the changes affected small competitors?

• Customers wanted faster delivery and lower prices o Could now track their shipments o Highest volume customers demanded express delivery services o Express mail had become the standard means of delivering documents o Two key factors impacted their decision to ship: urgency and price o Who they selected to do their shipping depended on many things: reliability, brand name, access to tracking, customer service, convenience of drop-off and pick-up

• Operations o Basic infrastructure and activities were similar between big 3 o Use of bar codes to move packages along faster o Air lifted on commercial airlines o Technology and bar codes helped with sorting o Lower priority packages were usually shipped on the road o Physical distribution centers

• Competition o FedEx, UPS, Airborne – big 3; served more than 85% of the market
• Second tier players: BAX Global, DHL Worldwide Express, Emery Worldwide, Roadway Package System, TNT Express Worldwide and the US Post Office
• Post office was the one of the second tier group that served most of the remaining market; could not offer volume discounts; could not track packages efficiently; poor on-time delivery record
• DHL and TNT: focused on international market; DHL offered extensive services to hard-to-reach areas; speed of delivery depended on getting quick clearance at Customs (DHL knew procedures AND the Customs officials); DHL never invested heavily in US; both maintained a low profile in US; TNT focused primarily on Europe
• BAX Global and Emery: focused on heavy cargo; not competitive for overnight letters; Emery attempted to expand into small package market, but was a disaster; suffered huge losses until it specialized in…...

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