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Strategic Management
, Sixth Edition
Charles W. L. Hill, University of Washington
Gareth R. Jones, Texas A&M University
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Case Discussion Questions
Discussion Questions for Case 29--The Evolution of the Air Express Industry, 1973-2002
- How true is it to say that "Federal Express pulled off one of the greatest marketing scams in the industry
by making people believe that they absolutely, positively had to have something right away"? (This comment by an industry observer was made with reference to Federal
Express's creation of the industry.)
- Why, despite rapid growth, was the air express industry characterized by low returns during much of the 1980s?
- Why did competitive intensity moderate and prices rise during 1988-1989?
- What do you think will happen in the industry if the U.S. economy enters a deep recession?
- What form do you think the competitive structure of the global air express
industry will take during the next decade?
- To what degree do first-mover advantages form the basis of Federal Express's competitive position in the air express industry? Given this, how vulnerable
is Federal Express to renewed price competition?
- How vulnerable is UPS to intense price competition?
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