...יסודות האסטרטגיה Case 4 – Airborne Express 2/6/2014 שאלה 1 Carry out an external analysis of the express mail industry מתחרים קיימים תעשיית הדואר המהיר מאפשרת שליחת חבילות/דואר תוך לילה עד מספר ימים. בשוק הנ"ל מתחרות 3 חברות גדולות: Federal Express, UPS, and Airborne Express. אשר משרתות יותר מ 85% מהשוק. בנוסף פועלות בשוק 6 חברות קטנות: BAX Global, DHL Worldwide Express, Emery Worldwide, RPS, TNT Express Worldwide, and U.S. Postal Service. בשנת 1996 ההוצאות של עסקים ואנשים פרטיים על דואר מהיר היו 16-17 מיליארד דולר בארה"ב. ניתן לראות שהשוק צמח בקצב של 15-20% לשנה בעשור האחרון, אך בגלל תחרות מחירים הכנסות התעשייה צמחו רק ב10-15% בממוצע לשנה עם צפי לצמיחה עתידית של 10% לשנה בעשור הקרוב. כאשר FedEx החזיקה 45% מהשוק המקומי. UPS החזיקה 25% מהשוק המקומי והייתה החברה הגדולה בעולם למשלוח חבילות. Airborne Express החזיקה 16% מהשוק המקומי וצמחה יותר מ-2 המתחרות הגדולות שלה. Airborne שונה מ-2 המתחרות הגדולות בכך שהיא מתמקדת בלקוחות עסקיים, ומתמקדת בעלות נמוכה לעומת UPS ו FedEx אשר מתמקדות יותר באיכות השירות. תחרות המחירים בענף חזקה מאוד בעיקר על לקוחות עסקיים ומחירי השילוח יורדים דבר שמקטין את שולי הרווח של החברות בעיקר עקב הוצאות תפעול גבוהות. בנוסף עקב עלות ציוד גבוהה מאוד חסמי היציאה מהענף מאוד גבוהים. כוח המתחרים גבוה. כוח המיקוח של הלקוחות הלקוחות מתחלקים לעסקים ואנשים פרטיים, וכן לקוחות קבועים ולקוחות מזדמנים. הבחירה בין החברות השונות מתבצעת על סמך מחירי המשלוח, אמינות החברה, מותג, אפשרות לעקוב אחר החבילות , שירות לקוחות וכו' . כוח המיקוח של הלקוחות הגדולים – עסקים אשר...
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...Summary: After a highly successful quarter in the extremely competitive express mail industry, Airborne Express managers are assessing the firm’s current competitive position within the shipping industry. Although they are a much smaller company than their two main competitors, UPS and FedEx, they are looking to see how they can continue to maintain their healthy growth in the industry. Airborne is in a unique position, as they are significantly smaller than their major competitors, but still have managed to acquire a high position in the market. How can they continue this growth? Opportunities -International expansion needs with increased globalization in commerce. -Partnership with RPS as a way to increase ground delivery network while still maintaining low costs for clients -Major opportunity to be seen as a “low cost” alternative to premium carriers FedEx and UPS, as Airborne has a much more efficient target clientele. Provide a minimal “bells and whistles” service to their clients with low overhead costs. STRATEGY Ground delivery services: Airborne should continue to “hand select” their clients based on mutually beneficially needs; clients’ needs for cost-efficient and personalized shipping, and Airborne’s need for customers with relatively consistent shipping needs to help keep their costs down. -Start by continuing to leverage their partnership with RPS, which could help them harness some economies of scale cost advantages more similar to their larger competitors...
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...Airborne Express In the 1990’s, express mail was a profitable business, where individuals were spending almost $17 billion to ship items. Shipment volumes had increased 15-20% every year over the last ten years too. The three main shipping companies at this time were Federal Express, UPS, and Airborne Express. Airborne Express was the third largest shipping company during this time. Compared to UPS and Federal Express, Airbone needed to focus on the importance of service and speedy delivery to grow. Because the express shipping industry began to attract more business, UPS and Federal Express began a pricing war, resulting in Airborne’s ability to gain margins. Airborne Express was able to produce profits during this time by using its own sources of competitive advantage: 1. Continue to service companies who needed to ship large volumes of urgent item materials. 2. Less automation and more employees for sorting, allowing the company to hire more part time employees instead of full time. 3. Shipping was mainly in metropolitan areas, which allowed them to concentrate on afternoon deliveries or second day deliveries. 4. Allowed other companies to release new technology for the field and then would order the devices for Airborne, rather than paying for R&D up front. 5. Reduced operating costs by: owning its own airport to ship the items for customers, as well as utilizing older aircraft for shipping, no retail centers to maintain, and had outsourced...
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... Executive Summary In the Express mail industry there are three major companies Federal Express, UPS and Airborne which make up 85% of the total market. Together the three companies shipped more than 5 million packages each day and over 98% arrived on time. Each company had different business strategies to achieve competitive advantage over each other but the basic infrastructure and activities among the companies were similar. Here Federal Express is the market leader which covered 45% of the domestic express mail and UPS took second place and covered 25% share .Federal Express and UPS always tried to copy each other’s action and when a competitor came up with a formula that attracted the attention of potential customers, the other were compelled to follow suit with similar services, or better yet, an improved version .On the other hand Airborne Express is the third largest and fastest growing international mail expresses company in America. It held roughly 16% of the domestic express mail market by 1997. 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 owned foreign trade zone in Wilmington; it is more flexible and provides more customer-tailored services. It charges lower price but still much guarantee delivery dates .In case of adapting or installing any technology Airborne competitive behavior was response and when there...
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...Airborne Express: Analysis of HBS Case Study Q1) 1. Threat of New Entry For the US Express Mail industry, the overall threat of new entry is very low. The following list and explanation captures the difficulty an entrepreneur might face in trying to penetrate the express mail market: * High capital requirements: In order to establish an express mail operation, the start-up capital required is too big for an individual to obtain. For example, Federal Express’ Superhub in Memphis has 2.4 million square feet of floor space and can hold 147 planes. UPS’s new hub will cost approximately $860 million. In addition, a cargo plane sells for $90 million. * Economies of scale: newly established postal service will have tough time competing against majors since small operation translates into higher prices for consumers. * Strong brand identification of existing firms: Express mail is an important part of doing business for many individuals and firms. They will naturally favor the traditional postal service that has gone through the test of times and proven reliable. * Aggressive reaction of incumbents: Both the first-tier majors and second-tier minors will react to a new entry by a player and will apply pressure by using their cost advantages and superior managerial knowledge. * Product differentiation: It will be hard for the new postal service to differentiate the company’s service since the express mail service has become standardized due to investments...
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...Business Opportunity Analysis [Airborne Express] Seoeui Hong 1316692 1. Identify the key buyers, products and geographies that Airborne Express, FedEx, and UPS try to serve. Are they similar or different? | Airborne Express | Federal Express | UPS | Product Line | Air-express transportation + provides delivery service of small packages and documents | FedEx Ground delivery (No shipment)(Business documents, electronic components, medical samples and replacement parts) | Ground delivery + express delivery by air(Courier Express Services Freight Forwarding Services Logistics Services) | | | | | Target Customer Segment | Business customers that regularly ships large volume of urgent items | All Segments | All Segments (For their basic business shipping envelopes and packages, anyone around the world who wants to ship an envelope or package) | | | | | Geographies | railroads, motor freight, water transportation, air transportation | railroads, motor freight, air transportation | railroads, motor freight, air transportation | | | | | The upper chart demonstrates a comparison among the three largest companies- Federal Express, UPS, and Airborne Express. The physical, information, and human assets deployed to accomplish this feat varied from company to company, but the basic activities are similar in terms of products, target, and geographies. But, there are some different...
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...Case Analysis: Airborne Express (A), Harvard Business School. Not so long ago, there was no such thing as overnight express service and freight delivery. Then Federal Express, United Postal Service (UPS) and Airborne Express, among six second-tier companies, came upon the scene. In 1973, Federal Express invented the concept of overnight express package, soon followed by the other two largest express companies–UPS and Airborne, during the 1980s. The fast growth of the Express Mail industry was mainly due to the success of the express delivery service. Thanks to Frederick Smith, a Yale undergraduate back in 1965, who had envisioned a whole different system on his economics term paper. Smith proposed an airline dedicated exclusively to express delivery of mail. Regardless of a “C” grade received on his paper, Smith incorporated Federal Express in 1971and officially began operations on April 17, 1973. Some of the features in the evolution of the Express Mail Industry includes but is not limited to the creation of the hub system and air express service. Created by Federal Express, the hub system is the symbol of the modern air courier industry. It made possible the large-scale, overnight deliveries and it has remained the standard operating method in use to this day. This system allows air courier industry to ship all freight to the company’s central hub, where it is sorted, and rerouted to its final destination. Also under consideration, the air express service played an important...
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...Brief Sobre Caso Airborne Express Posicionamiento y Clientes: Olvidada y rara vez atraía noticias del sector. Hechar poca importancia a las entregas de consignadores particulares o poco regular. Había dejado de dar servicio a empresas de ventas estacionales. Concentración en clientes de empresa específicos, no quiere desviar por atender clientes que atiende sus consumidores por correo particularmente: Historia: 1949 Asociación de Tranporte Aéreo de Flores de California – flores frescas de Hawai 1949 Pacific Air Freight –reparto de productos perecederos con origen y destino en Alaska 1968 Airbone Freight Corporation, diversificaba a convertirse en agencia de transporte aéreo general de mercancías, fue más de éxito antes de la creación de Fedex. Sede: Seattle, Estatuo: Había crecido mucho más que los 2 rivales, mucho más grandes y conocidos.1997 cuenta con 16% de la cuota nacional de correo urgente. Objetivo anterior: Captación clientes de empresas que envían grandes volúmenes de artículos urgentes, a otros emplazamientos comerciales. Como IBM y Xerox que envían componentes de productos a nivel nacional. Aeropuerto Willington(875.000 dolares), centro de almencamiento, única zona de comercio exterior de propiedad privada del país, importante impuestos. Estatuo de Proceso: 12.700 empleados tiempo completo y 8.000 tiempo parcial, 13.300 camionetas y 175 aviones 900.000 paquetes y documentos diariamente 30% de los transportados no precisaban en servicio...
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...CONTEXTO GENERAL La industria descrita en el caso corresponde al trasporte de correo en los Estados Unidos, contextualizada durante la década de los noventa. En ella existen tres grandes competidores que cuentan con propuestas de operación, tecnología, mercadeo, ventas y recursos humanos en esquemas muy parecidos y dominan el 85% del mercado de correo de EEUU, y otras 6 compañías con menor participación. ATRACTIVO DE LA INDUSTRIA: Análisis de las 5 Fuerzas de Porter: Amenaza de nuevos participantes [Baja]. Las barreras de entrada a la industria son medias debido principalmente a la dificultad para obtener aprobación del gobierno para comenzar operaciones aéreas (fuerte regulación gubernamental). Aunque hay un alto requerimiento de capital inicial los activos no son específicos y son mayormente negociables. Sin Embargo, la amenaza de nuevos participantes es baja, debido a la gran rivalidad dentro de la industria, la poca diferenciación y bajos costos de cambio. Los principales actores de la industria se encuentran bastante consolidados, con grandes economías de escala, gran experiencia y curva de aprendizaje. Rivalidad entre compañías existentes [Alta]. Bajo número de competidores, solo 3 dominan 85% del mercado de correos de EEUU. La industria continua creciendo, sin embargo, los márgenes operacionales son estrechos debido a los altos descuentos otorgados para las empresas de mayor volumen. No existe una clara diferenciación. Amenaza de sustitutos [Media-Baja]....
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...EXECUTIVE SUMMARY Statement of Purpose The purpose of this case study is to help Airborne Express with its strategy formulation and implementation. Statement of the Problem and Objective Problem: Decline in the market share of Airborne Express in the volume of overnight deliveries. Objective: To become one of the top three companies in the express carriers industry. Alternative Courses of Action ● Not compete with established competitors like FedEx and UPS, and stress the reliability of its delivery schedules. ● Expand Airborne Express' business globally and establish an international service that is comparable to the company's domestic service. ● Focus on high-level corporate accounts. ● Develop a new market niche. Come up or develop SDS (second day service). ● Continue buying second-hand planes and updating its parts as well. ● Lease a part of its airport. ● Promote younger management or employees. Analytical Tools Employed ● SWOT (Strength, Weaknesses, Opportunities, and Threats) Analysis ● PEST (Political, Economic, Social, Technological) Analysis Recommendation After the analysis, it is best for Airborne Express to lease a portion of its airport to competitors. The revenue that would arise from the lease of its airport would help in a way. Airborne should start promoting younger management, so that new ideas and direction would flow in the company. Airborne should also continue focusing on high-level corporate accounts. Implementation ...
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...Key Learning Essay #2 MAN 6721 March 16, 2010 It is known that a company’s strategy is very important to their success. We have addressed how a company’s strategy must fit properly with the environment in which they are operating. We refer to this as their external fit and utilize Porter’s five forces to evaluate it. While external fit is important, it is also necessary to have a proper internal fit. I will first discuss more about internal fit is. Next, I want to address the importance of links to internal fit. Finally, I will look at some examples of companies and the strengths or weakness in their internal fit. The term internal fit may seem to be an oxymoron, but many companies are more worried about external factors before really addressing their core values. Many companies fail to realize that competitive advantage comes from internal fit. A competitive advantage comes from creating value to your customers that they would not have otherwise. Not only value creation but also value capture is a part of creating an advantage over competitors. Capturing value comes from organizational design. Making sure the processes inside your company are all reinforcing is essential to making sure the fit is right. To make sure activities inside the company are reinforcing one another we must create links between the different departments. All of the operations, such as human resources, production, marketing, and distribution must be on the same page. Companies must look for inconsistencies...
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...1. Descripción General El caso en estudio describe la industria de correo Urgente (Express) de Estados Unidos y la posición en el mercado de Airborne Express (A); planteando 5 preguntas: • ¿La posición de la compañía en el sector era tan segura como la dirección deseaba? • ¿Hasta qué punto eran peligrosos y estaban nerviosos sus dos agresivos rivales? • ¿Era valido su enfoque actual respecto a los mercados internacionales? • ¿Hasta qué punto era importante la colaboración con RPS para su futuro? • ¿Debía seguir la medida aplicada por UPS y Federa Express y pasar a precios en función de la distancia? El análisis se abordada a través de las 5 fuerzas competitivas de Porter. 2. Fuerzas de Competitivas 2.1. Potenciales Entrantes Barreras de entrada: • Economías de escala, para la disminución de costos es necesario acceder a un importante volumen del mercado, 3 compañías (UPS, FEDEX y Airborne Express) concentran el 85% del mercado. • Experiencia y curvas de aprendizaje, la experiencia y conocimientos del negocio por los empleados en general de la compañía son fundamentales para la optimización eficiencia operacional. Conocimientos rutas de distribución, codificación y manejo de encomiendas, requerimientos específicos de los clientes, son algunos ejemplos. • Diferenciación de producto, la industria está concentrada en 3 grandes compañías (UPS, FEDEX y Airborne Express) que las dos primeras con gran posicionamiento de marca. • Requerimientos de Capital, la actividad...
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...The 187th Infantry Regiment is a regiment attached to the 101st Airborne Division stationed our of Fort Campbell, Kentucky. The 187th Infantry Regiment was initially inducted into the Army as the 187th Glider Infantry Regiment during World War II. The regiment was constituted on the 12 of November 1942 and then became active on the 25th of February 1943. Initially, the 187th was assigned at Fort Mackall, North Carolina for their initially infantry training and afterwards were moved to Fort Polk, Louisiana for their glider training. From Fort Polk, the 187th then moved to stage themselves at Camp Stoneman, California where they would depart to New Guinea. The 187th arrived in New Guinea on the 29th of May 1943 to become part of the New...
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...CHECK ON LEARNING FINAL EXAM 1. At which angle would you approach a UH-60? A. 45 degrees C. 15 degrees B. 90 degrees D. 40 degrees 2. When approaching A/C how would you add stability? A. Bend forward at waist B. Approach from the rear C. Maintain low silhouette D. A & C 3. How many emergency exits are on CH-47D? A. 12 windows C. All windows minus windshield B. All windows D. 4 windows 4. What is the crash positions for the UH-60L? A. Bend forward at waist B. Stand Straight up C. Sit up right D. Sit Indian style 5. What three items must be on you at all times? 6. How many first aid kits will be on a UH-60L? A. 7 B. 2 C. 1 D. 3 7. The maximum airspeed for a UH-60 A/L/M is 193 mph. True or False 8. The CH-47D/ F can carry 24 combat equipped troops. True or False 9. The HH-60A/L/M MEDEVAC in normal configuration can carry 4litter patient and 2 ambulatory patient. True or False 10. Draw a line to the correct helicopter for the first letter indicator basic mission. AH OBSERVATION HELICOPTER MH MULTI-MISSION HELICOPTER CH ...
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...The efforts of the French Resistance also helped make D-Day successful. They cut railroad tracks, sabotaged train engines, targeted supply trains (Normandy), cut phone lines, assassinated German officers, (Koeller 47), and bombed roads, bridges, and rail junctions. This work practically destroyed the French transportation system, disallowing the Germans the ability to send reinforcements for the attack (Normandy). The night before D-Day, three airborne units, the 101st and 82nd American Airborne Divisions and the 6th British Airborne Division were meant to be deployed to areas south of the beach (Kemp). Their mission was to clear the way for the troops by eliminating various obstacles. However, due to the weather the mission was not fully successful. The 82nd, to be dropped near the town of Sainte-Mère-Eglise, were scattered throughout the countryside. The 101st suffered equally badly. Their mission was to drop south of Utah Beach to secure roads and bridges at Carentan, a town near the center of the Peninsula. Unfortunately, many of the paratroopers were dropped into the water and drowned (Koeller 60). If it were not for their utter determination, there would have been practically no purpose for the paratroopers. After the drops, small skirmishes erupted everywhere. However, the troops rallied and were able to regroup to complete most of their objectives, thanks to the efforts of the French Resistance. Because the Resistance had cut phone lines, the German chain of command...
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