Topic > Airborne Express - 1137

Airborne ExpressExecutive SummaryAirborne Express is an air express transportation company providing delivery of small packages and documents throughout the United States and to and from many foreign countries.Mission StatementIdentify the issues and problems that The company is faced with and how it incorporates the main trends affecting air delivery activities into its corporate strategy. Provide alternative courses of action and recommend the best alternative to improve the company's operations. Problem StatementAirborne Express in 2002 ranked third in the U.S. air express industry with nine percent (9%) of the market and has difficulty catching up to its larger rivals, FedEx and UPS which hold 26% and 53% of the market. . Focus on and continue to develop deferred delivery and ground services as there is a shift towards these types of services from overnight package services.2. Continue to have strategic partnerships and alliances with foreign agents to serve the international market.3. Company accounts should continue to be the primary focus.4. Rent a portion of their airport facilities. Analytical tools1. Porter's five forces attractiveness model2. SWOT Analysis Recommendation The shift from premium overnight services to lower margin deferred services and ground delivery services is a boon for Airborne Express. With existing resources, including trucks, tracking systems, regional hubs and sorting facilities, only minor initial investments are needed to fully develop these types of services. They should use these resources wisely and effectively. Conclusion Airborne should continuously strengthen and improve its services domestically, as it provides more revenue, then strengthen its alliances internationally, so as to meet the demands of the international market. To increase its profitability, Airborne should lease a portion of the airport facilities to other airlines, so that it can have other sources of income to offset the airport's maintenance costs. Analysis methods1. Portera's five forces of attraction model. The threat of new entrants into the industry: Operating an express air transportation industry requires large capital investments and therefore may prevent new businesses from entering the industry. For one thing, Airborne already has its own set of planes and even operates its own airport, and it would be difficult for a new company to compete with that. The company does not spend much on advertising; his brand