• 11 февр. 2011 г.
  • 377 Слова

Airbone Express

1. How the structure of the express mail industry has been changed in past years? Why ?

Businesses and individuals spent 16-18 $ billion on express shipmentswithin the USA in 1996. Shipment volumes grown up 15-20% per year, but revenues of that industry had grown only 10-15% each year (because of lower prices). Physical delivery of the package was only partthe service offered. Additionally was a possibility to track shipments; to choose the way/time to be shipped; prices (lower prices for shorter distance); convenience of drop-off; logistic consultingservice. Shipping companies became huge. Three the biggest “Gorillas” in that industry were FedEx, UPS and Airbone, which together served more than 85% of the market. They owns their vans, drivers,aircraft, hub airport.

Why ?

This is normal process between rivals. Different companies target different ways of making their service better, by finding solutions (for example – differentmarkets). Every company suppose to find their differentiation in that industry, in order to provide great/special services, better than rival’s.

2. What structure uses Airbone to survive anddevelop?

First of all the Airbone focused on business customer who shipped a large volume of urgent items. They were known a low price shipping service company. They could survive, because of lowcosts. They have their own airport, they do leasing warehouse space. They were buying used aircraft by upgrading them to their needs. They could load (80 %) more per flight than competitors (65%-70%).They did not make (almost) advertising, while competitors spending 20 millions $ / year. Didn’t (almost) invest on new technologies. Picking technology after “guinea pigs” (FedEx, UPS) tested. 30% ofthe volumes was shipped not by airplanes (lower cost). Use of independed contractors (lower cost). Drivers picked up more parcels per time (lower labour cost).

3. What should do the management...
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