The Air Express Industry

It is an industry characterized by a first innovator (Federal Express) and the entry into the field by other couriers, and the United States Postal Service, which led to a massive deregulation of the industry. Deregulation led to severe price point competition, as well as quality of service competition. This was because the passenger airlines had dominated the air cargo business, and when this monopoly was taken away, the industry opened up.

At the same time, a growing consumer awareness of the value of quick delivery and the changing business models for shopping led to new techniques of logistical handling. This paper will examine this evolution using Porter's Five Forces model.

This model is particularly apt for studying the evolution of the Air Express Industry.

Harvard economist Michael Porter's book, Competitive Advantage dealt with the different ways that companies can gain long-term competitive advantage. He argued that companies, when planning strategic survival, must plan within the framework of the "Five Forces" model.

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Approximate Word count = 873
Approximate Pages = 3 (250 words per page)

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