Airborne Express 8
Perform a Five Forces analysis of the US express mail industry.
Force
Players
Competition
Rivalry
FedEx, UPS, Airborne Express, U.S. Postal Service and other second tier players like BAX global, DHL, Emery, RPS and TNT.
High
Substitutes
E-mail, Fax, Telephone, Regular mail, Personal delivery
Medium
Buyer Power
Consumer, businesses
Med-High (Businesses can effectively negotiate prices and associated services)
Supplier Power
Suppliers for postal material, aircraft, airport, trucks, Labor
Low-Med (less pull on the aircraft, trucks area but labor is a considerable factor. Ex. UPS labor strike)
Ease of entry
Low-Med (High capital infrastructure cost. High barriers to entry due to rich services provided by existing competitors. Still, a new entrant can try venturing into a market segment, by resorting to contracted services and other low-cost options)
Perform a competitive analysis of FedEx, UPS and Airborne. (express mail segment only)
Factor
FedEx
UPS
Airborne Express
Products offered Same day, next day early, next day, 2nd day, third day, international expressSame day, next day early, next day, 2nd day early, 2nd day, third day, international express, parcel service options
- Predominantly next-day afternoon and 2nd day
- Customized same day and next day early AM to high-volume customers.
- Warehouse space.
Target customers
Individuals, small, medium, large businesses, catalog retailers
Individuals, small, medium, large businesses, catalog retailers
- High-volume business customers (Xerox, Nike, Compaq etc)
- Metropolitan area customers
- Customers who would like a cost-effective, reasonably swift option
- No focus on infrequent shippers
Competitive positioning (incl. price & cost)
- 45% market share
- Market leader
- #3 player low price-wise
- 25% market share
- #2 player in market
- #2 player low price-wise
- 16% market share
- #3 player in market
- #1 player low price-wise (exhibit 8)
Financial performance
The OM
Force
Players
Competition
Rivalry
FedEx, UPS, Airborne Express, U.S. Postal Service and other second tier players like BAX global, DHL, Emery, RPS and TNT.
High
Substitutes
E-mail, Fax, Telephone, Regular mail, Personal delivery
Medium
Buyer Power
Consumer, businesses
Med-High (Businesses can effectively negotiate prices and associated services)
Supplier Power
Suppliers for postal material, aircraft, airport, trucks, Labor
Low-Med (less pull on the aircraft, trucks area but labor is a considerable factor. Ex. UPS labor strike)
Ease of entry
Low-Med (High capital infrastructure cost. High barriers to entry due to rich services provided by existing competitors. Still, a new entrant can try venturing into a market segment, by resorting to contracted services and other low-cost options)
Perform a competitive analysis of FedEx, UPS and Airborne. (express mail segment only)
Factor
FedEx
UPS
Airborne Express
Products offered Same day, next day early, next day, 2nd day, third day, international expressSame day, next day early, next day, 2nd day early, 2nd day, third day, international express, parcel service options
- Predominantly next-day afternoon and 2nd day
- Customized same day and next day early AM to high-volume customers.
- Warehouse space.
Target customers
Individuals, small, medium, large businesses, catalog retailers
Individuals, small, medium, large businesses, catalog retailers
- High-volume business customers (Xerox, Nike, Compaq etc)
- Metropolitan area customers
- Customers who would like a cost-effective, reasonably swift option
- No focus on infrequent shippers
Competitive positioning (incl. price & cost)
- 45% market share
- Market leader
- #3 player low price-wise
- 25% market share
- #2 player in market
- #2 player low price-wise
- 16% market share
- #3 player in market
- #1 player low price-wise (exhibit 8)
Financial performance
The OM