Airborne Express Essay Example | Topics and Well Written Essays - 250 words

Airborne Express - Essay Example Now it was easier for companies to invest in jets and pose threat to profitability of firms. With respect to the power of suppliers, it can affect the relationship between a business and its customers by influencing the quality and price of the final product. Power of buyers had great impact on the profitability as they began to negotiate in groups and enjoy discounts and lower costs. Availability of substitutes is high in the industry and with the advancement of technology and better systems, more promising channels flared up, inflicting damage to the profitability of the industry. Competitive prices also lead to a decline in its profitability levels. Competition from conventional rival has had the biggest impact in depressing industry profitability: the express package delivery industry has become more concentrated in recent years, because of mergers between companies and bankruptcies of many firms. What strategies did Airborne adopt to try and increase profitability? Why was it un able to gain any competitive advantage over FEDEX and UPS? Generally Airborne strategies focused on gathering information about competitors in the market, the service’s uniqueness, description of key clients, channels for distribution, pricing strategy, expenses and research and development.