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hbr Airborne Express
Business Opportunity Analysis
[Airborne Express]

Seoeui Hong 1316692

1. Identify the key buyers, products and geographies that Airborne Express, FedEx, and UPS try to serve. Are they similar or different?

Airborne Express
Federal Express
UPS
Product Line
Air-express transportation + provides delivery service of small packages and documents
FedEx Ground delivery
(No shipment)
(Business documents, electronic components, medical samples and replacement parts)
Ground delivery + express delivery by air
(Courier Express Services Freight Forwarding Services Logistics Services)

Target Customer Segment
Business customers that regularly ships large volume of urgent items

All Segments
All Segments (For their basic business shipping envelopes and packages, anyone around the world who wants to ship an envelope or package)

Geographies railroads, motor freight, water transportation, air transportation railroads, motor freight, air transportation railroads, motor freight, air transportation

The upper chart demonstrates a comparison among the three largest companies- Federal Express, UPS, and Airborne Express. The physical, information, and human assets deployed to accomplish this feat varied from company to company, but the basic activities are similar in terms of products, target, and geographies. But, there are some different parts as shown in the chart.
2. Now, identify the "activity sets" along the internal value chain for Airborne Express, FedEx, and UPS. Are they consistent to serve the buyers, products and geographies targeted?
“Activity set” is defined as a method of categorizing physical activities performed to fulfill an order. This can be identified by analyzing the internal value chain of Airborne Express, FedEx, and UPS.
Internal Value Chain

The five elements of the value chain are: inbound logistics, operations, and outbound logistics, marketing and sales, service.
[Airborne Express]
Inbound Logistics
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