Airborne Express

Airborne Express

What must Robert Brazier, Airborne's President and COO, do in order to strengthen the company's position?

Airborne Express is in the express mail industry which has grown through out the years. Looking at the five-forces in this industry- we can see that the treat of entry is moderate. It is moderate because the capital investment to start within the industry, obtain personal aircrafts, airports, and cliental would be a hassle within itself. Although Airborne itself doesn’t have much brand recognition or investments in marketing- to join the industry at this point would require much marketing, competitive advantage and capital investment to begin. The bargaining power of suppliers are high. Given the volume of suppling needs has increased by 20%- this shows the demand available despite the surrounding competition. Airborne provides a differentiating factor which allows fast deliveries for corporate employees, etc. The bargaining power or buyers high given the company’s higher relationships with corporate accounts which provides a bit more customer loyalty than everyday shipping. The threat of entry is high given the potential rise in the use of emails being utilized in the corporate setting which is there targeted audience. The rivalry among existing competitors is high given the constant switch in marketing/incentives the companies have which are easy to mimic such as pricing, delivery services, timely matter, etc. within the current industry

When taking a look Airborne and analyzing the overall industry, we can see where in industry stands.  Considering the VRIO analysis and breaking it down looking at the major competitors Federal Express and UPS, we can see the for” value” is high given the frequency in usage by customers and businesses who rely heavily “Rareness” within the industry is non existent. There are many other competitors who are also in the mail service industry- who are constantly competing with one another to have the better rate, service and high/timely delivery quality as the features which would create competitive advantage for the firm were easily to be mimicked by others specially with the 10-15% increase in revenue within the industry. Which then leads us to whether this service is imitable, which it is. There has been a constant imitation in services and perks to the customer which will give them the advantage and the cost to imitate would be high in regards to getting the cliental, equipment, quick marketing switches, etc. As an industry, I believe they are organized to capture value as long as it remains competitive in the industry.