Express mail

Question 1 asked to complete a five forces analysis of the US Express Mail Industry. A five forces analysis is done to rate the attractiveness of an industry. Threat of new entry is low because the barriers to entry are high. Newcomers to the industry would require an enormous amount of up front capital to set up the distribution networks and infrastructure, such as establishing hubs, and acquiring aircraft and a large amount of ground transportation vehicles (vans, trucks, ect). Economies of scale

In the past there was no thing as overnight express delivery for packages or freight. Then the top 3 competitors in the delivery service industry that held 85% of the market were Airborne Express (AE), United Parcel Service (UPS) and Federal Express (FedEx) and, the remaining market share was among six second-tier companies. In the past few years, the express mail businesses had grown extremely fast due to the ability to provide and fulfill overnight shipping accompanied by next-morning delivery

Q1) What is the industry attractiveness like in 1997? Has it changed in recent years? Q2) Does Airborne Express have a competitive advantage? Is it sustainable? Q3) What recommendations will you give Airborne Express? ---------------ESSAY START ------------------ Industry Attractiveness in 1997 The industry is defined as the Domestic US Express Mail industry. This includes overnight and second day delivery. In order to assess the attractiveness of the industry, a Porters' Five Forces analysis

population and diversity and to develop an action plan that has accurate information best describing the trends in population growth and diversity within this organization. The organization selected for this diversity action plan is Federal Express. Diversity Action Plan Organizations in every size are realizing the value of creating a plan to increase and manage diversity within their companies. The steps in developing this plan can include; assessing needs,

Executive Summary Based on our analysis regarding competitive advantage, company comparison, financial data and operational excellence, we believe UPS will be a better performer in the long run as compared to FedEx. Competitive Advantage UPS has a first mover advantage over FedEx, beginning air delivery service in 1929. Although FedEx was the first to own and operate their own planes and introduced the innovative “hub and spoke” distribution pattern, UPS leads in specialized transportation and logistics

have only risen, at a rate of “15-20% per year for the past decade” (2). Companies in the industry provide an express delivery mail service; however, services are not limited to physical delivery. In addition, companies provide tracking and warehousing services, as well as shipment-related logistics consulting. The market is dominated by three main competitors: FedEx, UPS, and Airborne Express. Together, these three companies hold upwards of 85% of the market share. Using Porter’s five-force analysis

1. From the point of view of the industry incumbents, is the express mail industry attractive? How has Airborne survived, and recently prospered, in its industry? Is its success attributable to its capabilities, its position, or industry attractiveness? The express mail industry can easily be considered an inherently tough industry to operate within given the myriad of factors that come into play, such as unions, government regulations, cost of technological advancement, and international borders

1.How and why has the express mail industry structure evolved in recent years? How have the changes affected small competitors? The US express mail industry is highly consolidated. 85% of the market is served by 3 service providers. There are six second tier players who serve the remaining 15%. FedEx and UPS lead the industry in services and innovation. The following trends have been observed in this Industry. Services: A host of services are provided to suit the needs to different businesses.

Executive summary Airborne Express is the third largest and fastest growing international air express delivery company in America. It held roughly 16% of the domestic express mail market by 1997. It provides time-sensitive delivery of documents, letters, small packages, and freight in the United States and internationally. The company has several advantages over its rivals, such as it provides delivery services at a lower cost of up to 20% over FedEx and UPS; it operates the nation’s only privately

Harvard Business School Airborne Express Case Study Q1. How and why has the express mail industry structure evolved in recent years? How have the changes affected small competitors? The Express mail industry in the United States had a volume of $16-17 billion on expedited shipments in the year 1996. In the years before shipment volumes has risen 15-20% per year. However due to higher competition prices have fallen which resulted in a rise of only 10-15% in total revenues. As an example of