Identify the type of business strategy used by Airborne Express, including the t

Question

Identify the type of business strategy used by Airborne Express, including the type of competitive advantage it seeks, the product-market scope, and the value chain activities used to deliver the competitive advantage. Then explain if the Airborne Express strategy meets the external consistency test? (Hint: To apply this test, you must first do an industry analysis to identify the challenges faced by firms in the express mail industry, and then explain if Airborne Express has a strategy that addresses these challenges).

Does the Airborne Express strategy meet the internal consistency test? (Hint: To apply this test, first explain if activities in the Airborne Express value chain are tailored to deliver the competitive advantage it seeks. Next, explain if the VC activities have fit. Finally, explain if there are positive interactions or negative interactions among the VC activities.)

Does the Airborne Express strategy meet the dynamic consistency test? (Hint: To apply this test, explain if Airborne Express has a sustainable competitive advantage? If yes, explain why and how. If not, explain why not. Also explain if hub choices are addressed.).

(Here are some resources that may be helpful)

https://prezi.com/ibtqc583m8yq/airborne-express/

https://prezi.com/43d5ywkf4qxp/airborne-express/

http://blablawriting.com/airborne-express-harvard-business-case-essay

http://www.slideshare.net/utsavmone/airborne-express-case-qa

http://www.hbs.edu/faculty/Pages/item.aspx?num=24231

Explanation / Answer

Airborne’s Strategy

Airborne Express has a sustainable competitive advantage :

Its mainly targeted to business that regularly orders bulk and huge amounts of urgent items. The publicity costs are comparatively less as it never advertised publicly. These advertising costs and marketing costs are used in enriching their core competence like large shipping companies. Sale profit margins area always high as the company has the freedom to negotiate discounts in volume rates. It has the superiority power to select the adequate technology and implement it. The core advantage of the company is that they quote and render services at very low prices. The ownership of major airports helps and serves the company as major hub for transactions and results in reduction of operational costs.

Airborne Express strategy meet the internal consistency test :

The internal consistency test can be handled by SWOT analysis :

Strengths :

Weakness :

Threats :

Opportunities :

Globalization of the company.

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