Base on financial power and company size, Airborne cannot be aligned with FedEx and UPS. However, Airborne could successfully grow faster than its competitors for series period of time and positioned itself behind those two giant firms. The keys successes are resulted from Airborne’s abilities to discover its competitive advantage. However, to label Airborne for achieving sustainable stages, we need to analyze of Airborne’s external environment and internal environment relationship. The competitiveness of rivalry is high in express mail industry.
Big firms, such as FedEx and UPS have dominated the market with its financial power and bigger size. Cause small companies or even new entrance to pessimistic The Domestic Express Mail Industry has highly competitive rivalry. The demand of this industry is highly elastic toward price offer and durability. The industry is dominated by two superior firms FedEx and UPS, which offer barriers for small companies and the new entrants to compete. Moreover, the main suppliers, such as employee, airports, or operational vehicle, have power that increase cost.
However, in this tight business environment, Airborne has successful positioned itself as top three firms in the industry. Even though not comparable with FedEx and UPS in financial power and size, Airborne can hold 16% of the domestic express mail market in 1997. Airborne’s success is resulted from its ability to discover its competitive advantage, which we will describe below using Airborne’s internal analysis. Base on the facts above, Airborne Express has sustainable competitive advantage.
However, Airborne needs to maintain and increase its efficiency by create more effective organization structure by replacing centralize management into decentralize; Increasing quality and reliability in delivery timing; be responsive toward customers need for distance base pricing by keep flat price for regular service and offer early delivery with high cost. All the strategies must be made for the purpose to provide high quality services that can increase customer value toward our services, therefore increasing demand.