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While UPS, admittedly lagged behind FedEx in keeping pace with environmental trends, it is interesting to note that the company is now closing the gap quickly through addressing the weaknesses in its competitor's business model. Today, it is UPS, which is in a stronger position. UPS achieved this turnaround by integrating its online and core business practices, developing an open system of online services, and offering customers price and service flexibility. This strategy has not only allowed UPS to gain the leadership position in the online business segment, it has also resulted in the company's air express delivery business growing at more than double...
However, a closer analysis will reveal that FedEx can easily match UPS's current competitive advantages with more investments in Information Technology and an expanded ground transportation system. But there is one competitive advantage that UPS enjoys, which FedEx may not find that easy to match or leapfrog. And that is in the area of cost leadership where UPS is undoubtedly the industry leader!
References
Cohen, I. (2002, October). The Parcel Service Industry 2002: UPS vs. FedEx.
UPS - Business Analysis UPS was founded in the early 1900's as a messenger company, and has since grown into a billion dollar corporation that promotes global commerce (ups.com, 2003). The United Parcel Service is recognize as a world leader in interstate commerce and package delivery, and also offers transportation and logistics service (ups.com, 2003). UPS interacts with over 200 countries worldwide (ups.com, 2003). UPS has been a global leader in
United Parcel Service (UPS) Foundational facts Current financials Prospective assessment Tough competition and soaring costs Suggestions United Parcel Service (UPS) United Parcel Service (UPS) is an American multinational corporation that operates in three major industry sectors i.e. logistics service, freight forwarding service, and courier express service. UPS is services-based company and is headquartered in Atlanta, Georgia. The company has worldwide operations. Being a public limited company, it is traded on New York Stock Exchange (NYSE) having the
A fourth weakness is the declining level of business services sales during one period of the case study, brought about by the economic recession impacting areas of the global economy unevenly. Opportunities FedEx can expand significantly more into the highest-growth economies of the world by pursuing more acquisitions in specific logistics and transportation management companies. As one of their core strengths is growth through acquisition, the company needs to consider how
FedEx was founded by Fred Smith after his tour in Vietnam, and he continues to run the company today, as the only CEO that FedEx has ever known. The company began by offering overnight courier services, an industry that to that point had not existed. Today, that unit is known as FedEx Express and it is still the largest in the company. There are competitors, however, mostly notably UPS, DHL
Thus it exemplifies a company's migration from the technology strategy through the service strategy to the market strategy of the B2C e-strategic grid" (132). These authors suggest that these it-based initiatives were primarily responsible for the company's ability to promote its services and grow its market share far more rapidly than its main competitor: "By focusing on building profitable market share, UPS is now able to deliver 12.4 million
FedEx In the case of FedEx, some elements of its business would be subject to regulatory oversight from the Department of Justice, which enforces the nation's antitrust statutes. These laws exist to protect consumers from unfair business practices. If the DoJ were to be involved in a FedEx merger this might imply that the company was attempting to merge with UPS. The result of that merger would be to take the