1. According to Porter's framework, what generic strategy was Airborne Express pursuing? Was this a sound strategy in the context of the air express industry?
2. What were the strengths of Airborne Express? Did it have a distinctive competence? If so, where did it lie? Was this competency imitable?
3. What were Airborne Express' weaknesses?
4. Was Airborne's strategy of using strategic alliances to expand overseas wise? What were the pros and cons of this strategy?
5. Was Airborne's strategy of trying to diversify its product offering to include logistic services for clients wise?
6. Why did Airborne sell out to DHL in 2003? Why do you think that DHL was unable to grow its U.S. market share, and subsequently exited the market in 2009?
Airborne Express was the third largest company in the U.S. air express industry until its acquisition by DHL in 2003. It was also the low cost player in the industry. The case focuses on the strengths and weaknesses of Airborne Express, its business level strategy, and its strategy for building a global business. The case offers a detailed view of a company that was been forced by adverse circumstances to become very efficient. The theme that runs through the case is that everything that Airborne Express did could be viewed as an attempt to reduce costs and boost productivity, while maintaining an excellent service.
The case opens with a brief review of the history of the company. The case then moves on to discuss the main features of Airborne Express' operations. This includes a detailed "nuts and bolts" discussion of how its domestic and international delivery systems work. Next, the case reviews Airborne Express' strategy, both in the domestic market and with regard to international expansion. The case then discusses the company's organizational structure, control systems, and culture. The cases closes with a discussion of its acquisition by DHL in 2003, and the aftermath of that acquisition?