Airborne Case Study
oWhat were the Business strategies of FedEx and UPS during the early years and how have they evolved with time? ?FedEx used customer relationships when it first started out, making things easier for the customer. Through the evolution of the company FedEx retains its customer relationship strategy, making sure that the customers are happy and the packages are on time. UPS used the low-cost leadership in the beginning. This meant that even though all customers were getting the same service for the same price, it was at the convenience of UPS.
Due to the evolution of the company, UPS moved to a customer relationship. This allowed the same results as FedEx but they stayed true to their own mission. oWhat is Airborne Strategy? How does Airborne, a relatively small player, manage to perform so well in an industry dominated by two giants? ?Airborne uses low-cost leadership. Airborne owns its own fleet of planes as well as its own hub; UPS and FedEx don’t, so they have to pay extra fees for using those facilities.
Airborne also doesn’t offer next day shipping so the mail has time to be sorted and shipped without incurring to many costs. oWhat should Airborne do (in 1997) to continue to survive/succeed? ?Airborne should continue with the strategy that they are following currently. It allows them to keep customers happy as well as keeping costs low. I would suggest that Airborne join services with RPS so they can have better control over the air and on the ground.