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Case Study - Airborne Express

1. Pestle analysis

Political: Airborne has not suffered from ant political turmoil so far. The strategies it undertakes are independent decisions of management under no political influence.

Economic: Airborne is an international organization delivering service to more than 200 countries. This ensures that the stabilized economic condition of the company. It had accounted more than 11% revenue in 2002. Because of its stabilized economy it had offered two international products offering door to airport and commercialized sized shipments.

Social: Airborne was authorized for operating its business in overseas countries such as Japan, Hong Kong, Singapore and so on. It also had its alliance in Thailand, Malaysia and Japan.

Technological: Airborne gutted the interior of lobby by installing state art electronics and technical equipments such as avionics. The company deploys resources to upgrade their air aircraft with latest technologies (Turner and Endres, 2017). They standardized the cockpits for the crew to switching between the fliers.

Legal: the foreign trade Zone of Wilmington hub exempted Airborne from paying taxes. There is also no requirement of any custom duty before merchandise leaves.

Environmental: The installations or digitalization done by Airborne has not affected environment. In addition to this their operation regarding any manufacture process takes place far from locality so that they do not add pollutants to air.

2. Porter 7 power

Buyers Power: On picking up a package, the driver has to read a bar code with the help of a scanner. The information fed directly to the proprietary FOCUS having a global coverage of record and shipment status. It allowed the buyer to get direct access to their shipment information.

Suppliers' power: airborne controls the movement of its components from their supplier from hong-kong operations in order to reduce the holding costs. The data products are collected from Los Angeles airport and then schedule the deliveries.

Competitive: The Company has positioned itself to a competitive market position because it negotiates reasonable airfare than Japan airlines. This attracts more number of customers (Kalimullin and Dobrotvorskaya, 2017). There are competitors of Airborne such as DHL Airways and US portal both have held market share of 5%. DHL has a strong market position in America and is the largest package delivery in world.DHL has acquired Airborne serving the package delivery industry and this made Airborne a large postal logistic company.

New entries: according to market report a second hand DC9 costs around 10 million dollars this is a contrast to the cost of 40 million dollars for new air craft as an opposition to UPS and FedEx aircraft.

Substitution:  Airborne offered their rates almost 84% lower than FedEX. FedEX offered Airborne to launch the ground delivery service in order to retain parity to their competitors uin market. FedEX pulled the European ground out with their international strategy, but it contineuwd to fly with its own overseas fliers. Because of FedEX Airborne minimized their businessith flying triggers.

Stake holder: the stakeholders for Airborne Company are identified are the crew members, suppliers, passengers and collaborators.

Complementary: airborne survived strategies that enhanced the productivity of the Company. The company drove down its costs to the industry level falling from 28 dollar to 14 dollar.

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3. Business level strategies

Differentiation: During the early 80's Airborne had undergone tough competition with FedEx. Airborne had taken an attempt to focus on a wider market that involved both regular and infrequent fliers (Vieira et al. 2017). Regular users generated more than 20,000 dollar per month to the business. They also knew to contribute over 1000 shipments on a monthly basis unlike infrequent users who cannot generate more than 20,000 per month. The business level strategies undertaken by Airborne are as follows

Cost leadership

Advertise campaign: In order to build consumer awareness the organization invested huge resources on advertising campaigns that included television ads. This business strategy helped them to build wide market coverage by following FedEx as a funding lead. However, organizing advertising campaigns helped the company in little penetrating the market.

Recommendation: The Company can collect customers' feedback to improve their service or introduce new innovations.

Increase market share: Although this is one of the most expensive business strategies, Airborne decided to experiment the strategy in order to serve infrequent users. The company required more pickup rate to generate more business volume.

Recommendation: Airborne can collaborate with other companies in order to attract more investors.

Market Niche

Building sales force:  The Company decided to focus on requirement of corporate account. During this time the organization cut down advertising expenditure. It focused more on building sales force (Keivanpour et al. 2017). By increasing sales force the company was able to direct specific pickup routes and reducing cost per unit of the company.

4. Corporate Level strategies

Airborne introduced some of the corporate level strategies such as

Strategic alliance

Logistics service: Airborne promoted a logistics range to offer their customers with their ability to maintain their inventories in stock exchange. The organization introduced a third party logistics that could be handled by both customers or by the company itself. Airborne was able to control the movement of its components that was more cheap as compared to other organizations.

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Managers Acquisition

Organizational strategy: The CEO of the company has kept the organizational structure flat allowing free flowing ideas along the hierarchy. The senior managers are more open to ideas by other members of the organization hence airborne followed a democratic leadership style (Vieira and Loures, 2016). The major control of Airborne was to boost the productivity by lowering expense and offering advanced quality service.

Recommendation: The managers should encourage more training programs and professional development skills for their employees.

Employee motivation: Airborne is known to motivate their employees through various means. The vision of the company is target the pay philosophy of the employees in order to achieve self control (Li, 2018). This corporate strategy helped Airborne to focus an employee centered organization structure. Thus it helped to establish the competitive edge in aircraft industry. All the values of the organization consisting of mission, vision and goal were circulated among the employees so that every employee has certain contribution towards cost control and productivity through maintain service quality.

Recommendation: The employee can be offered a hike on their package or improve their daily wage in order to retain them long time in the industry.

5. Balance score card and key performance indicators

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