Airborne Express 6

Airborne Express 6

December 31st, 2007

To: Robert Brazier & Senior Management Team of Airborne Express

From: Strategic Analyst

Re: Recommendations and Implementations for recent issues in Airborne Express



Executive Summary:

Airborne Express has many options available for sustainable growth and success in the coming years. After the recent 29% increase in revenue over the past year, there are opportunities to take into consideration that will boost this growth for the fourth quarter. This company should join the "industry trend" of distance–based pricing. This will result in higher revenues, and will give Airborne Express a more substantial budget to merge with Roadway Package System in order to create a more technologically advanced tracking system. This ... Show more content on Helpwriting.net ...E–mailing could possibly have a small effect on this industry, but this is not an option for most deliverable items, as well as legal documents. Depending on the urgency of a package being delivered, regular mailing systems propose a small threat on this industry. It obviously costs less, but it doesn't compare at all to the convenience of express delivery services. Buyer Power: The major consumers in this industry are basically anyone who intends on sending a package or letter to someone urgently or with the most convenience. It seems as if businesses use this industry the most, considering the importance of delivering and receiving products and other necessities to keep a company stable and on top of their game. Because there is barely any differentiation in this industry, it allows customers to easily shop around for the best prices. This raises price sensitivity and gives the consumer more customer power. Barriers to Entry: The threat of new entries in this industry is equally low as the threat of substitutes. There are few major players involved here, and it shows that for a new one to even exist they would need to have the capability of covering a large amount of cities in the United States. In order to have a main convenient center of business, as well as aircraft and an extensive amount of vehicles calls for a high capital investment. This would be extremely difficult for any new entries to be accountable for and would take years of hard work and sustainability

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