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Case Study Airborne Company

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Airborne Case Study Name Instructor Airborne Questions Q1. Express mail industry has evolved over the years since individuals and businesses have increased their expenditures from $16- $17 of shipments within the United States. Moreover, the company has shifted to overnight shipping in the distribution of products and services delivery. These changes within express mail industries has increased their structural delivery to major parts of the world since many customers view them as reliable with overnight delivery of products to different destinations around the world(Rivkin, 1998,p. 1). On the contrary, the changes have affected small competitors because of increased shipment volumes from 15-20% annually, and prices fell while total revenue …show more content…

Hence, it creates more opportunity for the company to develop worldwide in the delivering it is services against competitors. Threats The Company faces threats of high competition in the market that may, in turn, reduce its customer base and profitability. The Porter’s Five analysis of the company is as follows Threat of new entrants in the market The company has threats in the new market such as Federal Express that entail 45% of the domestic express mail market and became leading in the industry. Bargaining power of suppliers Suppliers of the company bargain in terms of transportation and container charges of the packages. The bargaining power of suppliers increases the rivalry intensity within the company. Bargaining power of customers Its customers bargain as they compare charges of service delivery with other competitors. It develops and generates pressure on the quality of service delivery since the companies’ fears to lose customers. Threats of substitute products The substitute performance of other companies had various challenges in the cost of their changes. Low cost for changing of products for substitutes gives an opportunity of a threat to other

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