Airborne Express : Case Study

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 …

…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.