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 commercialise is served by 3 service providers. There atomic number 18 vi second tier players who serve the remaining 15%. FedEx and UPS wind instrument the industry in services and innovation. The following trends have been notice in this Industry.

Services: A host of services argon provided to suit the needs to different businesses. Overnight shipping and next-morning spoken language are most popular amongst other services like next-afternoon delivery and second day service. Same-day and early-next morning services are stock-still costlier. Shipment volumes have risen over the decade even the rise in revenues has not been complimentary, due to falling prices.

Customers: it is imperative form for businesses to facilitate fast information dissemination. Express mails have provided a medium for establishing this. All businesses and individuals today routine this service. Contrary to the conventional belief, items being shipped are high value compared to high weight. These items are time-sensitive.

Customers have different criterias to decide which service provider to use. With advancements in technology, this industry has become highly automated, there by providing split customer service with relation to parcel tracking, pick up services etc.

The decision matrix generally includes brand name, reliability, price, customer service etc. Customers are generally not fast(a) as switching costs are negligible.

Operations: Most players use the hub-and-spoke model. Major hubs act as collecting crusade for mail from all over America. The mails are then sieve and then sent off to respective destinations. Priority is abandoned to early-next and next-morning mails. Planes land and take off all through the night. detonating device expenditure related to a hub is extremely high. Both FedEx and UPS accentuate on improving the sorting capacity...

If you want to get a full essay, order it on our website: Orderessay



If you want to get a full essay, wisit our page: write my essay .