Federal Express (later known as FedEx) was established in 1973. Ten years later, the company reaches $1bn in revenue – the first US business to achieve this status without merger or acquisition. Services extend to Europe and the Middle East by the end of 1989. Between 1991 and 1999 FedEx launches: Express Freighter® to provide overnight delivery to Europe and Asia, FedEx Ship Manager® - first company to allow customers to process shipments online and FedEx EuroOne®, opening a new hub in Paris. In 2000, FedEx became known as “FedEx Corporation”. Services are divided into different companies that operate independently yet compete collectively. During 2008, FedEx Corp ranks ninth in the business superbrands list. In 2010, the company opened a brand new hub in Cologne airport, the largest solar powered hub worldwide. FedEx Corporation’s revenue during 2011 was in excess of $39.3bn.…
This report will analyze the fierce on-going competition between the two companies that have dominated the package delivery service, FedEx Corporation and United Parcel Service, Incorporated. The situational analysis will explain the back and forth battle between in both popularity and profitability as these two companies try to gain market dominance. This part will also analyze the agreement between the United States and China regarding the new air-transportation agreement. Financial analysis will also be used to show that UPS, at the time the case was written, is financially superior to FedEx.…
The purpose of this paper is review the current market trends and conditions for FedEx. There are numerous ways that a company can become a success or become a failure. The market trends and conditions are just of those reasons. Team A has analyzed the market trends and conditions by reviewing FedEx's operating structure, competitors, the impact of government regulations, price elasticity of demand, along with a supply and demand analysis.…
The air express segment was a $25bn portion of the US package-delivert industry, and was concentrated in letters and packages, overnight and deferred, and air or air and ground. Virtually all FedEx business activities were in the air express segment of the package delivery industry, only 22% of UPS’s revenues were derived from its next day air business. FedEx and UPS’s competition for the dominance of the $25bn domestic air express delivery market foreshadowed in an unusually challenging future…
Studying FedEx, UPS and their competitive relationship gives a good insight for the companies' and industry's future. The two companies have different strategic goals and are operating in the same industry but in different main markets: FedEx is working on "producing outstanding financial returns" and focuses on the profitability of overnight air market whereas UPS is looking for "earning reasonable profit" and its core business that is the ground delivery.…
Thanks to consistent growth of economy and multidomestic exchange, the logistics industry has been witnessing buoyant growth and will continue this growth momentum in years to come (Rajaram, 2011). The demand for logistics services in China has been largely fueled by consistent growth of economy, and key industries such as automotive, engineering, pharmaceuticals and food processing. Similarly, individuals’ demand for logistics service has been also dramatically increased because of the convenience provided by modern technology such as online shopping. As a result, express companies were founded and promptly expanded to fulfill the customers’ demands for a rapid, efficient and secure shipping service. In China, there are currently more than 1,000 registered express companies operating and offering logistics services to either individuals or organizations. However, it is true that various problems are existing within those companies, which lead to significantly negative impacts on organizational effectiveness and relationship with clients. This report will focus on one representative express company in China, which is called Shentong Express and investigate the company’s problems and underlying causes behind them. This report will also recommend solutions that address the symptoms and causes to improve the organization’s performance and productivity.…
Both FedEx and UPS have met their match in the logistics industry. FedEx gives a more liberal way of business by giving the drivers a small business set up, and UPS is looking to stay a few steps ahead of the game with trends like being environmental friendly, saving natural resources, cutting costs, and using technology to make logistics run more efficiently. Combined parcel carriers like FedEx and UPS are growing vigorously because of solid matrix models and the need of their existence. It is imperative in the scope of businesses that its components are solid, smooth sailing, and always one step ahead of the…
This paper addresses current status of FedEx Corporation and how they are performing. The paper addresses FedEx’s SWOT analysis giving their strengths, threats,…
Customers have different criteria's to decide which service provider to use. With advancements in technology, this industry has become highly automated, there by providing better customer service with relation to parcel tracking, pick up services etc.…
The purpose of this memo is provide a recommendation on whether to invest in FedEx or UPS, given that the air transportation market in China is now open to both companies. Outlined in this memo are an assessment of the strategic approaches and an evaluation of the financial and non-financial performance of both companies, which led to the conclusion that UPS is the superior investment opportunity.…
| * Big competitors are FedEx and UPS; * Smaller competitors like BAX Global, DHL, Worldwide Express, Emery Worldwide, RPS, TNT Express, Worldwide, and US Post Service…
In the freight forwarding industry there are three major corporations which make up 85% of the total market; United Parcel Service (UPS), Federal Express, and Airborne Express. Combined, these “Big Three” ship more than 5 million packages a day with over 98% of which arriving on time. The impact that the express mail industry has made on the U.S. economy in terms of technology, logistics support for small business, and the overall movement of goods has far exceeded the expectations of many since its origination in the 1970’s. The case at hand dives truly dives into, not necessarily the phenomenon of express mail, but who were these competitors and how they competed with each other.…
More and more people are using computers and the Internet. Dual income families have increased spending; therefore more people are ordering products over the internet at a high rate. The Internet offers customers a one stop source for global shipping. Due to this, there has been an increase in using information technology and the Internet for businesses. This has created an increase in trade and investment along with global shipping logistics and supply chain solutions. With the increase in globalization, companies have had to adapt to the diverse work force and the culture of the countries in which they are conducting business. The parcel service industry is controlled by strict regulations and federal law. For example, September 11 brought stricter laws and regulations in the parcel service industry. Operations must maintain federal approval to…
This paper will explain to the reader the courier, express, and parcel delivery service industry with a brief history of how these industries work. After explaining these industries, this piece will go into the history of the global market leader in logistics, DHL. After concluding the brief history of DHL, the majority of this paper will describe DHL’s Express division, the current status of the industry and company, macroeconomic indicators that relate to DHL, and future opportunities and challenges for the industry and the company.…
2005 DP DHL acquires Exel, the British logistics corporation. Exel primarily offers transport and logistics solutions for key customers…