2)For FedEx & UPS.Briefly discuss how this rivalry has impacted the following for these two firms.Make sure that you understand what these terms mean before trying to apply them!(If unsure, start with a definition)

a.Cost structures (specifically reliance on fixed costs or variable costs?)

i.Think:are each firm's costs (UPS, FedEx, Airborne) more heavily driven by fixed cost or variable costs.How did the extended rivalry

between FedEx & UPS make this true?

b.Switching costs

c.Learning effects

3)The characteristics defined in #2 above created the opportunity for Airborne's strategy to exist.What is their strategy for survival over the years?

a.Can you diagram a Long-Run Avg. Cost function that represents the cost structure of FedEx / UPS (they are similar) and another for Airborne on the same diagram.They should look different and should cross.Hint:how is Airborne's cost structure different than the other 2? (you may use the spreadsheet I've posted to help if you want) - IMPT to think about SCALE of each company

b.What type of customers does Airborne go after?Why?

c.How does 2(b) allow Airborne to go after these customers?

5)What two big threats are facing the US package industry in the late 1990s?

6)In view of #5 & #4, what might you as manager of Airborne do to survive longer?For instance, would you consider buying RPS - why or why not?How would you handle the threats in #5?Can you just hold on with your current strategy?Do you need to grow?Can you grow?You don't necessarily need to answer these specific questions but outline a strategy you may consider going forward.

https://drive.google.com/file/d/1rSUtYioDvVTdu6aM5ztTq4HPx1wXwYxA/view?usp=sharing