1. The US express mail industry consists of three main market players (UPS, FedEx and Airborne) and six second tier players.
The industry evolvement from the perspective of customers looks like this:
By time more and more people became used to express mails and many businesses for which express mails are an inseparable part, are high-volume customers. The major reasons for customers to use express mails are urgency of the shipment and the price. Also, for time-sensitive products express mails are highly relevant. Other factors playing key roles in this industry are access to tracking information, the reliability of conveyors and the convenience of drop-off.
Each company had a different operational structure, but the basic infrastructures were the same. More than five million packages were delivered each day and the in 98% of cases there…show more content… Differences between prices are not so big, which means a customer can quickly switch from one supplier to another.
Another point that makes a threat of buyer power high is that product differentiation is quite .
Bargaining Power of Suppliers-MEDIUM
In this industry, it is somehow subjective. For example, Airborne Express has its aircrafts, which makes treat of suppliers low, while for other companies that do not obtain their own machinery it is high. For airports, vehicle repair centers, fuel delivery companies and others the same subjective system works.
Threat of Substitute Products/Services-HIGH
In the technology century there are many alternatives (especially for document delivery) such as Emails, Facsimiles, Skype, Telephones, etc.
Intensity of Rivalry-MEDIUM
Here we should divide market into two parts. The first one consists of market gorillas (UPS, FedEx and Airborne) which compete with each other, while second part consists of small players that have their