Airborne Express Company Overview

6 Pages 1606 Words

dEx were just swallowing up competitors. So Airborne decided the best way to compete was to be the low-cost provider of air express service. Robert Cline, CEO of Airborne explains their strategy “When you are up against UPS and Federal Express, those guys are so big and so well capitalized that you have to have a tool to fight with them. It wasn’t going to be size; it wasn’t going to be how well-know we were. So, we decided to be the low-cost operator.” (Washington CEO P 33). However, to become the low cost operator Airborne centralized it s organization as much as possible. After all, why pay middle management high salaries when upper management can make all the decisions. Furthermore, what CEO would trust middle management to make decisions during the unstable periods of the company’s history?
Another major changes Airborne underwent in the eighties, was to differentiate its service. Unlike its two major competitors, FedEx and U.P.S., Airborne changed its strategy to concentrate o...