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Case Study, Airborne Express

764 words - 3 pages

Discussion Questions:1. Using the Value Chain Analysis, identify the primary & support activities of AirborneExpress.First I'm going to tell something about the primary activities of Airborne Express. The primary activities exist of inbound logistics, operations, outbound logistics, marketing and sales, and as last after-sales service.Inbound logistics: They use road and air. After the pick up, it goes to the major hub in Wilmington.Operations: The operations are the delivery of approximately 900000 packages.Outbound logistics: The delivery of the packages from the hub to the delivery destination.Marketing and sales: Targeting logistics managers of major shippers.After-sales service: The use of their internet site to track their shipment and the call center automation.Second, The support Activities, they include human resources, accounting and finance operations, technology, and procurement.Human resources: `` strait-laced, frugal and conservative``Firm infrastructure: Their fleet has 13 300 vans, 175 aircrafts and their own airport.Technology: Airborne uses its Freight on-line control and Update System (FOCUS) but in general they wait with investments until shows clear benefit for the customer.Procurement: The usage of their aircraft fleet2. What are Airborne Express' most important capabilities? What is its core competence?Airborne Express targeted the business that focused on the shipping of large volume of urgent items, primarily to other business locations. Their most important capabilities are that, Airborne Express is the only one who has an airport and therefore didn't have to pay for landing fees, nor did it face any obstacles to tailoring the facility to its needs. Airborne has build a warehouse space who created the ability to receive orders as late as 2 am and have goods delivered the same day. Airborne has a patent on his cargo containers who fitted through a passenger door of an air craft and therefore did not needed a cargo door. Airborne could fill his aircraft roughly 80% full and not 65%-70% as his competitors. An other advantage of Airborne is that they could use the trucks more often than their competitors for the long-haul portion of a delivery and this was estimated to have costs who were 1/3 of the costs of owning and operating a similar amount of aircraft capacity. Airborne did things to offer a low price and was known for that. Airborne created a code for...

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