Business and Management
Submitted By barbnstl
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…...