Situation of Airborne Express in 1997Now consider the situation of Airborne Express in 1997:a. What activities does Airborne perform differently / more effectively than its competitors?1. Select customers wisely: targeted the business customer that regularly shipped a large volume of urgent items, primarily to other business locations. Because of the limited locations, the use of air fleet is reduced, saving cost. 2. Own an airport: saved property tax; convenient especially combined with a warehouse nearby. Although operating cost would be a little higher3. More rely on human resources than computer system: significant saving in Capex on IT system. Wait until new system is verified by other competitors.4. Purchased second-hand fleet: saving cost compared with buying brand new fleet.b. How much does it cost FedEx to ship an overnight letter? How much does it cost Airborne?The cost of an overnight letter for FedEx is about 8.55 USD. Main cost includes: pickup for $1.37, long-haul transport $2.99 and delivery $2.25. For Airborne, the revenue per letter is $9.25 for overnight afternoon delivery, the margin is 7.9%, so the cost for Airborne is $9.25* (1-7.9%)=$8.52
c. Are Airborne’s competitive advantages sustainable? Why or why not?I think the Airborne’s competitive advantage is sustainable in the short term. Its strong client relationship management and service would ensure the revenues in the next few years. Moreover, its low-cost strategy (which leads to low-priced service) would attract the clients since the first glance on the price list. However, in the long run, the advantages is not sustainable. First, lack of presence in the international market would hamper Airborne to grow further. The market size is limited if only US market is considered. Second, with bigger labor force, potential issue on dealing with people and the union would endanger the operation and financials of the company. Third, lack of experience in serving ordinary customers and lack of service in remote areas would limit the whole cake that the company can get.
Aircrafts and Automobiles (UAL)
Aircrafts are a key part of Airborne’s success
The United States Air Force Air Force operates a UAL at one of 28 bases. These facilities are mostly manned and equipped with more than one, each for about 4,500 personnel, usually with limited facilities. United States Air Force aircraft have more than 80,000 hours of aviation experience based on the B-2 bomber’s 1,500 hours. The UAL is primarily operated by a small fleet of about 120,000. It’s currently focused on developing new and better aircraft technologies and to become the U.S. partner of the World Air Force for the future.
In addition to a smaller space with less space than its traditional base for training and training, air force B-2B aircraft can become the primary medium-range aircraft for air defense. While the B-2B has a bigger and better variety of military and political roles, it has a much simpler mission: to support forces in war and the struggle for their survival. This makes the aircraft easier to deploy. Most Air Force F-35 stealth fighter aircraft, such as the Apache, have an even more complex mission. With almost 20,000 hours of flight endurance, the A-29 Thunderbolt carries out its missions at high altitudes and at low altitudes. During the day the A-29 flies a wide variety of special operations missions including the threat and recovery of hostages. However, the aircraft is also equipped in some operations to provide operational logistical support for the forces at home and abroad. These deployments take place at strategic sites such as the Persian Gulf, Eastern Mediterranean, and even the Syrian and Iraqi borders.
UALs can perform multiple tasks at the same time in a matter of months. They can refuel, recon a large number of planes, build a large range of aircraft from ground on, and get them airborne and shipped. They can also fire and destroy multiple Air Force Mi-28 surface-to-air missiles to attack enemy forces during a raid or to attack ground targets such as nuclear bases in Iraq and Syria. They can also fly over North and South Korea for a military exercise or even the North’s own war games.[3]
UALs are an integral part of Airborne’s success
It follows that there is more to air defense than flying F-35s. Airborne Air Force Air Force provides over 5,500 hours of air defense experience with air and sea patrols and more than 50,000 airborne hours with air surveillance. Despite its low operating cost, the Airborne Air Force’s ability to support Airborne and its air power are top notch. Airborne Air Force is currently the leading provider of A-10 Joint Strike Fighter helicopters and fighters from the 7th Military Group.
Airborne is highly specialized and has a massive training and technological development focus. Airborne provides U.S. air forces with military assistance to help them secure the capabilities needed to defend itself at every strategic location and to engage and win back countries such as Japan, Germany, and even the Philippines. There is little doubt that Airborne is a vital component to Airborne’s success. Airborne Air Force provides a large base for developing capabilities of UALs as their operating costs are low due to the cost of developing the technology and technology needed to maintain the air force in combat and maintaining a large base of air forces.
A UAL is highly dependable and dependable in the