Airborne Case

Airborne Case - Almira Hamdja 1. Airborne Express The...

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Almira Hamdja Airborne Express 1. The express mail industry consists of three major players; Federal Express, UPS and Airborne Express. They make up 85% of the industry, and the other 15% by six second- tier players. In order for express mail companies to stay in the competition, they started to proliferate new services such as next-afternoon delivery, second-day, same-day and so on. They also invest heavily on capital-intensive facilities, and improve customer service. Discounts from list prices are common in the industry. By that, customers don’t have any loyalty to a certain carrier. In 1997, UPS faced a tension with labor union. It paralyzed the company and caused disruption to the U.S economy. It cost UPS a $700 million loss in revenue and it tarnished the firm’s reputation for absolutely reliable delivery. This event had major implications on small delivery companies such as Airborne and U.S postal service. Airborne’s performance and experienced terrific financial gains with 16%
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This note was uploaded on 05/10/2010 for the course BUAD 497 taught by Professor Degravel during the Spring '07 term at USC.

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