3. Geographic positioning (where?) - Major cities - The company’s focus was domestic, serving major US-based companies, which tend to be located near major metropolitan areas. - Airborne merely dabbled in international expansion, citing “no significant service advantages” that would make expansion appealing. -Airborne’s own airport was located in Wilmington, Ohio. This allowed for flexibility and the operation of a privately owned foreign trade zone. -After beginning operations solely in the United States, FedEx attempted multiple times to expand globally. Over a 10 year span, FedEx was able to expand its network to cover 211 countries and 99% of the world’s GDP. -While domestic shipments are still a huge part of FedEx’s business, the company’s global business was expected to surpass the domestic business by 2002. 4. Competitive advantage (low cost, differentiation, dual?) -Airborne possessed a dual competitive advantage: low cost and differentiation in the way of tailored service. -However, Airborne served niche market, focusing on large companies with certain types of orders. -FedEx’s competitive advantage is its differentiation in the way of reliability, speed, and offerings. - FedEx has shown the ability to consistently (above 99% on-time delivery) deliver within the stated timeframe. FedEx also has a reputation for its overnight delivery. -FedEx has led the industry in terms of innovation. Compared to Airborne specifically, FedEx’s technological offerings are a true differentiator. Part B. Activities and Fit In table below describe how Airborne Express and Fedex manage activities to support the positions you described above. You can put as many activities into each row as you think are important.
1. Airborne Express 2. Fedex: 3. Strategic Fit: Airborne 4. Strategic Fit: Fedex 1. Pickup and delivery (inbound and outbound logistics) No retail stores Subcontractors Drop-off Boxes Picked up and dropped off more parcels per route than rivals Flexible delivery times (before noon) Retail stores No subcontractors Utilized drop-off boxes Established alliances with
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- Spring '10
- Sales, Airborne Express, Express mail