Thank you very much for your help. This is the assignment, please answer the following questions from the case study attached below:
-How and why has the express mail industry structure evolved in recent years? How have the changes affected small competitors?
-Discuss the concentration ratio: Why do the small players struggle? Airborne is a small player, so how did they navigate?
-Use the reading and cite for ratio
-Discuss competitive rivalry: Why have FedEx and UPS not killed Airborne (they have been extremely disciplined)?
-Cite Porter framework for competitor analysis reading
Reccomendation (optional):
Could make the argument that compared to competitors and lack of fixed cost cause them to operate on a marginal cost basis; this doesn’t make sense due to their customer base which is predictable – a fixed cost model could make more sense
Hone in on the cost profile
Think about how the models and structures are similar and different – argue that they are more variable because they don’t advertise (don’t take too much stock in the airport, which incurs maintenance costs)
1. Concentration ratio, competitive rivalry, is it disciplined or intense?
Why do the small players struggle?
Airborne is a small player, so how did they navigate?
Airborne operates on scope – create a system of activities in synchronization with the customer base – compare the difference between scale (Fedex, UPS) to scope
Why have FedEx and UPS not killed Airborne (they have been extremely disciplined)?
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