3 what must robert brazier airborne s president and coo do in order to strengthen the company s posi

Third largest player in express mail industry. Boost from the recent strike at rival UPS. Fastest growing company in the industry, but thin margins. Federal Express had recently raised prices.

Strategy in Action Case study: Airborne express, question to answer: It is critical thinking in order to answer question, data tables could be used for help for analysis. Class concept should be used: VRIO framework, competitive advantage, industry lifecycle, accounting and economic profitability will attach the course notes ———- Added on This section covers business level strategies.

Having gone through external and internal analysis we are now ready to begin learning about how to use external and internal analysis to make important strategic decisions. Cost leadership and product differentiation are the two main business level strategies that can be further decomposed into broad and focused strategies while a combination of the two strategies will be called an integration strategy.

In other words we have five strategies for staking out a market position, operating the business, and delivering value to customers and depend on two major factors: These strategies are described below: Focused or market niche Cost Leadership: Focused or market niche Differentiation: Being the lowest cost producer of an upscale product allows a firm to underprice rivals whose products have similar upscale attributes.

Cost leadership and product differentiation are sometimes referred to as generic business level strategies because they represent heuristically two extremes that a firm could choose to pursue.

However, as with most of the concepts covered in this course, some firms are better able to gain competitive advantage by pursuing these generic strategies than other firms. Our definition of competitive advantage is: Important Points 1 In a market where competitive pressures e.

3 what must robert brazier airborne s president and coo do in order to strengthen the company s posi

It is true, by definition, that the cost leader in a market can charge the lowest price and still have a positive profit. However, a firm pursuing a cost leadership strategy would want to have the advantage of the lowest costs without being forced to charge the lowest price.

This is akin to the old boxing adage that: Firms have a strong incentive to compete on cost not price because of the advantages explained above. Therefore, firms enjoying cost advantages typically face strong competitive pressures on their cost positions.

The durability of cost advantages will be discussed later in the Cost Leadership and Competitive Advantage section. What can we do with this cost leadership? A sound understanding of these issues will help managers determine whether their focal firm is likely to generate competitive advantage by competing on cost.

Alternatively, managers may recognize that other firms have a clear cost advantage and therefore their focal firm should choose to compete on some other basis—such as product differentiation. Sources of cost advantage should be analyzed very objectively.

Finding out that the focal firm is not likely to have a cost advantage may be just as valuable as finding out that the focal firm is likely to have a cost advantage.

Additionally, Airborne is estimated to have a 30% cost advantage over FedEx in the pickup and long haul (per part 3 of Appendix C), which This is the end of the preview. Sign up to %(9). -What must Robert Brazier, Airborne’s President and COO, do in order to strengthen the company’s position? Husky Injection Molding Systems - What is Husky’s strategy for competing in the machines and molds industries? 4. What must Robert Brazier, Airborne’s President and COO, do in order to strengthen the company’s position? Short Assignment: Evaluate Airborne’s advantage and unique position by comparison with the two giants of he industry, Federal Express and UPS, using the material in the case. This comparison will include cost analysis and other .

Recall from Chapter 4 that a resource, in this case the source of a cost advantage, may lead to competitive advantage if it meets the VRIO criteria. The Value of Cost Leadership This analysis would be used after it has been determined that the focal firm has a cost leadership position stemming from a source of cost advantage as described above.

3 what must robert brazier airborne s president and coo do in order to strengthen the company s posi

Also, if competing firms are found to have cost advantages the same logic could be applied to them in explaining why the focal firm probably would not be able to generate a competitive advantage based on cost leadership. The value of a cost advantage can be explained, at least in part, by showing how the cost advantage may help to neutralize threats in the external environment.

Remember that we said the starting point in this competitive advantage analysis of a cost advantage is at the point where it has been determined that the focal firm has a cost advantage.Airborne express.

Project description Subject: Strategy in Action. Case study: Airborne express, question to answer: What must Robert Brazier, Airborne’s President and COO, do in order to strengthen the company’s position?

It is critical thinking in order to answer question, data tables could be used for help for analysis. What must Robert Brazier, Airborne’s President and COO, do in order to strengthen the company’s position? Provider recommendations that will strengthen Airborne’s position in this industry.

Evidently, Airborne needs to employee . To survive, small company such as DHL and RPS must find their differentiation in the industry and specialized specific service. 3. How has Airborne survived, and recently prospered, in this industry? What are the sources of Airborne’s competitive advantage?

Airborne regularly shipped business customers over residential deliveries. 4. How has Airborne survived, and recently prospered, in its industry? What must Robert Brazier, Airborne’s President and COO, do in order to strengthen the company’s position?Airborne is the third largest player in the express mail industry and even with recent strikes at rival UPS, he isn’t able to gain more market share from FedEx and UPS.

The scheduled Team makes the first presentation (with Powerpoint support) representing Robert Brazier and Airborne Express’s top managers. A second team (volunteer or on call) represents an external consultant in Strategy called in by the Board to study the situation and make recommendations.

What must Robert Brazier, Airborne’s President and COO, do in order to strengthen the company’s position? Provider recommendations that will strengthen Airborne’s position in this industry. Evidently, Airborne needs to employee advanced technology and explore the global business.

VORUGANTY MANAGEMENT CASE STUDIES: airborne express case