Case1415Setzer - Cases 14 and 15 - Evaluation of Small...

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Cases 14 and 15 -- Evaluation of Small Package Delivery and Airborne Express 1. Using Porter's Competitors Analysis, compare the package express delivery industry (PEDI) in 1970 and 2006. 1. The risk of new entry by potential competitors. 1970 -- Clearly the entry of Federal Express in 1973 showed the industry as prime for potential competitors to enter. Moreover, the entry of such competitors in turned influence the lobbying process to deregulate the industry and open it for more competition. Risk is thus high at this time. 2006 -- The global economy has stabilized North America but the rest of the world still has room for growth. Even the United States may see a much larger DHL penetration. Risk is thus moderate at this time. 2. The extent of rivalry among established firms. 1970 -- No one dares to compete with the United States Postal Service (USPS) and so extent of rivalry is low at this time. 2006 -- Numerous large, established firms have cut costs and driven less able competitors out of business so the extent of rivalry among the winners remains
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Case1415Setzer - Cases 14 and 15 - Evaluation of Small...

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