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Read the “ Airborne Express ” article in your HBSP course-pack. Then apply the concepts and techniques learned in this module to answer the following questions: (a) Identify the type of business...

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Read the “Airborne Express” article in your HBSP course-pack. Then apply the concepts and techniques learned in this module to answer the following questions:


  1. (a) Identify the type of business strategy used by Airborne Express, including the type of competitive advantage it seeks, the product-market scope, and the value chain activities used to deliver the competitive advantage. (b) Then explain if the Airborne Express strategy meets the external consistency test? (Hint: To apply this test, you must first do an industry analysis to identify the challenges faced by firms in the express mail industry, and then explain if Airborne Express has a strategy that addresses these challenges).
  2. Does the Airborne Express strategy meet the internal consistency test? (Hint: To apply this test, first explain if activities in the Airborne Express value chain are tailored to deliver the competitive advantage it seeks. Next, explain if the VC activities have fit. Finally, explain if there are positive interactions or negative interactions among the VC activities.)
  3. Does the Airborne Express strategy meet the dynamic consistency test? (Hint: To apply this test, explain if Airborne Express has a sustainable competitive advantage? If yes, explain why and how. If not, explain why not. Also explain if hub choices and appropriate sequencing of decisions/activities are addressed.).
Answered 5 days After Mar 13, 2022

Solution

Shubham answered on Mar 19 2022
109 Votes
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Title: Message Board 2: Evaluating Strategy Effectiveness at Ai
orne Express
Contents
1. Business Strategy    3
Competitive Strategy    3
Product Market Scope    3
Value Chain Activities    4
External Consistency Test    4
2. Internal Consistency Test    5
Dynamic Consistency Test    6
Works Cited    8
1. Business Strategy
Ai
orne Express intentionally was selective about its customers because it was not possible for it to ensure residential door delivery. They also ignored businesses, which needed their services on seasonal basis. It offered specific services and thus required customers who are interested in parcel services or express mail services (Fernandez-Stark and Gereffi).
It chose with high volumes of urgent items such as perishable items or short-lived items, which are regular to business locations. It also offered warehousing and distribution facilities to customers who wanted warehouse before and after shipping.
Competitive Strategy
It has cost advantage over its competitors, which helped to stay grounded. It runs at an 80% aircraft capacity whereas competitors use up to 65%. In addition, automation is expensive so Ai
orne exploited human resource by providing part-time wages. It has only partial unionized workforce, which again acts in its favor. It also has warehouse in Wilmington property, which attracts reduced property taxes. It is only nations only privately owned foreign trade zone by Ai
orne. As warehouse is present near airport site it is easy for Ai
orne to deliver even midnight orders on time.
Product Market Scope
The mail delivery product offered by Ai
orne has two features namely: pick-up and drop. The major deliveries were in metropolitan cities, which constitute 85% of its volume (Hough and Nowak). Moreover, the afternoon-and second day deliveries also helped to use its truck fleet attractively. It was relying of limited delivery vans owned by it and the partnership with independent contractors who were paid on per mile basis. It also drops more parcel per stop at compared to its competitors. Due to gained cost advantage in the market Ai
orne’s committed delivery on time helped it to serve its customer base with more accuracy.
Value Chain Activities
Operations: The cost effective operations were the key to success. They helped Ai
orne to face the competition and manage its customers. It saved in pick and rop and ensured same day deliveries to instant orders even.
Technology: It is selective in investing in technology. Apart from FOCUS and other few selected software they do not upgrade until it is beneficial...
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