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Airborne Express Company’s Competitive Advantage Case Study

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Updated: Nov 18th, 2020

Introduction

Airborne Express, an express delivery company and cargo airline that was founded in 1946 to fly flowers from Hawaii to the US Mainland, currently has only 16% of the market share (as compared to Federal Express and UPS with 45% and 25% correspondingly). That is why the major task that the company now has to solve is how to enhance its position in the market creating a competitive edge. The problem is that even though the company has its airport, which should give it a considerable advantage over other companies in the logistics sector, Federal Express still outperforms its competitors practically in all aspects, leaving Airborne Forces behind (Rivkin, 2007).

Airborne Express Case

However, the reason for this becomes evident when we analyze the marketing strategy of the organization. A thorough investigation reveals that Airborne Forces invested much less in advertising its services than other companies in the industry. The preference was given to logistic managers in a huge corporation, which was an effective strategic move at the initial stage but does not provide a competitive edge in the rapidly developing market of today.

Furthermore, technology is another weak point that has to be addressed. For instance, the company’s website does not provide a chance to send and track paper works. Airborne Forces also needs to install COSMO software as other companies have already done to improve the logistics process. Finally, the organization still has not opened any retail service centers, which is a substantial disadvantage in comparison to its competitors who have done it long ago.

It not only hinders the process of delivery but also deprives the company of the opportunity to obtain total control over the distribution. Currently, Airborne Forces have to cooperate with other companies, which makes it considerably weaker than the leaders of the industry.

Conclusion

According to Rivkin (2007), the company and its partners fail to manage the full amount of goods and only handle 60-65% of their volume, which is quite a poor indicator as compared to Federal Express and UPS. Owing to this, Airborne Forces have a 97% probability of delivery lateness–a serious problem that also has to be resolved if the company wants to stay afloat and keep its position in the market.

References

Rivkin, J. W. (2007). Airborne Express. Boston: Harvard Business School.

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IvyPanda. "Airborne Express Company's Competitive Advantage." November 18, 2020. https://ivypanda.com/essays/airborne-express-companys-competitive-advantage/.

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IvyPanda. 2020. "Airborne Express Company's Competitive Advantage." November 18, 2020. https://ivypanda.com/essays/airborne-express-companys-competitive-advantage/.

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IvyPanda. (2020) 'Airborne Express Company's Competitive Advantage'. 18 November.

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