FedEx vs. UPS
Background:
The basis of the analytical report will be comparing Fed Ex and the United Postal Service (UPS). These two companies are the top in their industry. Each company trying to achieve the role of the industry leader they constantly battle head to head combining strategy and brute force. Fed Ex was incorporated in 1971, but did not officially begin operations until April of 1973. Fed Ex started out delivering to only 25 cities and did not start to expand until 1977. UPS was founded in 1907 starting out with a Model T Ford and a few motorcycles. UPS has since grown its fleet into 15,000+ trucks along with a large fleet of aircrafts and services over 200 countries and territories.
Originally called FDX Corp., FedEx Corp. was formed in January 1998 with the acquisition of Caliber System Inc. Through this and future purchases, FedEx sought to build on the strength of its famous express delivery service and create a more diversified company that included a portfolio of different but related businesses. In January 2000, FedEx unleashed the power of its global brand. In a move to further integrate the company 's portfolio of services, FDX Corp. was renamed FedEx Corporation. In addition, Federal Express became FedEx Express, RPS became FedEx Ground, Roberts Express became FedEx Custom Critical, and Caliber Logistics and Caliber Technology were combined to make up FedEx Global Logistics. To centralize the sales, marketing, customer service and information technology support for FedEx Express and FedEx Ground, a new subsidiary named FedEx Corporate Services (FedEx Services) was formed and began operations in June 2000.
A New Competitor
Michael E. Porter’s Five-Forces Model is the most effective way to identify the competitive environment of any industry. The first force to consider is the threat of a new competitor. The threat of a new competitor is low, the sub factors of this force consist of
References: About UPS. (2008). UPS. Retrieved May 25, 2011 from http://www.ups.com/content/us/ en/about/index.html Business Journal FedEx Corporation. (2008). FedEx Facts. Retrieved May 25, 2011 from http://about. fedex.designcdt.com/our_company/company_information/fedex_corporation FedEx Corporation, Ratios and Returns FedEx Corp. Reports Higher Fourth Quarter Earnings. (2011). FedEx. Retrieved June 22, 2011 from http://news.van.fedex.com/node/17501 Financial Statements, FedEx Corporation Financial Statements, United Parcel Service, Inc. (2010). Google Finance. Retrieved June 6, 2011 from http://finance.google.com/finance?fstype=bi&q=NYSE:UPS Five Forces Analysis United Parcel Service, Inc., Ratios and Returns. (2010). Forbes. Retrieved June 6, 2011 from http://finapps.forbes.com/finapps/jsp/finance/compinfo/Ratios.jsp?tkr=UPS UPS Companies UPS Quarterly Profit Nearly Triples Over a Year Ago. (2010). Associated Press. Retrieved June 22, 2011 from http://www.msnbc.msn.com/id/35196349/ns/business-personal_finance/t/ups-quarterly-profit-nearly-triples-over-year-ago/ Today’s UPS