Airborne Express

The operations are the delivery of approximately Outbound logistics: The delivery of the packages from the hub to the delivery estimation.

Marketing and sales: Targeting logistics managers of major shippers. After-sales service: The use of their internet site to track their shipment and the call center automation. Second, The support Activities, they include human resources, accounting and finance operations, technology, and procurement. Strait-laced, frugal and conservative’ ‘Firm infrastructure: Their Human resources: fleet has 13 300 vans, 175 aircrafts and their own airport. Technology: Airborne uses its Freight on-line control and Update System (FOCUS) but in general they wait with investments until shows clear benefit for the customer. Procurement: The usage of their aircraft fleet.

What are Airborne Express’ most important capabilities? What is its core competence? Airborne Express targeted the business that focused on the shipping of large volume of urgent items, primarily to other business locations.

Their most important capabilities are that, Airborne Express IS the only one who has an airport and therefore didn’t have to pay for landing fees, nor did it face any obstacles to tailoring the facility to its needs. Airborne has build a Morehouse space who created the ability to receive orders as late as 2 am and have odds delivered the same day. Airborne has a patent on his cargo containers who fitted through a passenger door of an air craft and therefore did not needed a cargo door. Airborne could fill his aircraft roughly 80% full and not 65%-70% as his competitors.

An other advantage of Airborne is that they could use the trucks more often than their competitors for the long-haul portion of a delivery and this was estimated to have costs who were 1/3 of the costs of owning and operating a similar amount tot aircraft capacity. Airborne d d things to otter a low price and was known for that. Airborne created a code for one of his biggest clients Xerox so that those packages would be delivered first (8 am. )Airborne core competence is to offer a good and fast service at a low price and they can do that because they are able to cut in their costs.

. How and why has the express mail industry structure evolved in recent years? How have the changes affected small competitors? Evolutions:-Other kind of deliveries and more focus on speed and price. -Higher volumes and decreases of price-A larger public uses this industry-The calculations of the optimal route with information systems for speed and low price- Track shipment-The customers became more difficult and started to ask more from the companies and wanted to have as much information as possible at all time.

Small competitors have a rough time because they have to compete with the larger and better organist companies. Big companies have advantages like economies of scale, bargain power,.

… The big companies don’t use all their full capacity all the time and they come the small companies in. They can buy capacity from the big ones. So the big companies can reduce their costs and the small companies can play in the express mail industry game.

4. How has Airborne survived, and recently prospered, in its industry?