Overview and Objectives:
Despite being only the third largest player in the express mail industry, Airborne Express has survived and prospered in an industry with significant economies of scale, even it is much smaller than giants such as Federal Express and United Parcel Service.
The Airborne Express CASE explores competitive positioning within an industry and describes Airborne and its rivals’ to understand their differences and relative strategic positions. Data is provided to explain Airborne Express’s cost advantage and other sources of advantage.
Suggested Questions:
1. How and why has the express mail industry structure evolve in recent years? How have the changes affected small competitors?
2. How has Airborne survived, and recently prospered in its industry?
3. Quantify Airborne’s sources of advantage (especially in term of costs).
4. What must Robert Brazier, Airborne’s President and COO, do in order to strengthen the company’s position?