Airborne Express: Harvard Business School case.

Q1) What is the industry attractiveness like in 1997? Has it changed in recent years? Q2) Does Airborne Express have a competitive advantage? Is it sustainable? Q3) What recommendations will you give Airborne Express? ---------------ESSAY START ------------------ Industry Attractiveness in 1997 The industry is defined as the Domestic US Express Mail industry. This includes overnight and second day delivery. In order to assess the attractiveness of the industry, a Porters' Five Forces analysis has been conducted as …

…per unit 7.<Tab/>Advertising & Sales is the same as Sales & Marketing = $60M = $0.19 per unit 8.<Tab/>Station & Ground operations expense for 1996 = $782M = $2.38 per unit. This consists of pickup and delivery labour as well. The remaining component has been assumed to be IT & Customer Service costs = $2.38 - $0.82 - $1.38 = $0.18 9.<Tab/>General and Administrative costs in 1996 = $181M = $0.55 per unit