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The Effects of Size and Strategy on Performance in the Air Express Service Industry

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Proceedings of the 1988 International Conference of Services Marketing

Abstract

This study investigated the relationships between size and profitability and strategy and profitability in a service industry. Data was collected on asset size and performance (ROA) for the five major companies in the air express service industry. An analysis of the data indicated support for the V-shaped relationship between size and profitability. It was also found that firms pursuing one of Porter’s (1980) three generic strategies outperformed those that did not. Implications for pricing and product differentiation strategies were discussed.

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Sriram, V., Shapiro, H. (2015). The Effects of Size and Strategy on Performance in the Air Express Service Industry. In: Thomas, E., Rao, S. (eds) Proceedings of the 1988 International Conference of Services Marketing. Developments in Marketing Science: Proceedings of the Academy of Marketing Science. Springer, Cham. https://doi.org/10.1007/978-3-319-17317-7_33

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