Airborne Express : Case Study

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1.How and why has the express mail industry structure evolved in recent years? How have the changes affected small competitors? The US express mail industry is highly consolidated. 85% of the market is served by 3 service providers. There are six second tier players who serve the remaining 15%. FedEx and UPS lead the industry in services and innovation. The following trends have been observed in this Industry. Services: A host of services are provided to suit the …

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…have already implemented it, customers who send express mails over shorter distance may find Airborne expensive compared to reduced rates by FedEx & UPS (shorter distance implies lesser price). Hence it may be left behind. Airborne's market is afternoon & second day deliveries, hence it should try to gain more share by aggressive marketing & bulk discounts. Since the strike had adverse affect on Single Sourcing, it should positively affect Airborne's business.