Airborne Express - Case Study Example

However, it will be prudent for Airborne Express to come up with an offer that is even better than that that is being offered by their competitors. In addition to distance-based pricing, the company might consider a pricing system that would see to it that the customers who frequently use their services are charged lower prices. This would imply that the more a customer used their services the more chances they had for paying less for the services. This will enable them to enhance customer loyalty.

Another thing that the company needs to consider is taking advantage of the strike that led to the dismal performance by UPS. Given the fact that this is the time when UPS will definitely lose a number of its customers, Airborne should make sure that they are in a position to win them. One thing that the company should do in developing good customer service that will enable them to know the areas in which their customers wish that they could improve. This will be beneficial in reaching the expectations of the customers, thus earning their trust and loyalty.

This can also lead to positive publicity which will attract new customers.Given the fact that Airborne Express does not pay any charges for landing, they should take advantage of the situation and launch a price battle in the industry (Rivkin 111). They are in a better position to offer express services with lower operating costs. This makes them the most definite candidates to win a price battle in the industry. If in any case, the other players in the industry will try to engage in this battle then there is a very high possibility that they will be on the losing end.

At the end of the day, the company with the ability to offer services at lower prices without recording losses will be the one to win the price battle. This will force their competitors to try to compete with them from other dimensions of competition apart from the pricing front.