Ups vs Fedex

Topics: FedEx, United Parcel Service, United States Postal Service Pages: 22 (5059 words) Published: September 9, 2013




Prepared to

Professor wahidur Rahaman

Prepared By

Ashraful alam: ID-2013010004018
Konika: ID- 2013010004022


Southeast University

Date of Submission- 08/09/2013


Table of contents Page no:

Memo of transmittal 1

Memo of transmittal ii

List of tables iv

Executive summary v

1 Introduction 1

1.1 UPS vs FedEx once a glance 2

1.2 Scope 1

1.3 Method 1

1.4 Limitations 1

1.5 Assumptions 1

1.6 Background 1

2 Findings 2

3.1 Comparison of computers 3

4 Conclusion 4

5 Recommendations and implementation 5

References 7

Executive summary:

Based on our analysis regarding competitive advantage, company comparison, financial data and operational excellence, we believe UPS will be a better performer in the long run as compared to FedEx. UPS has a first mover advantage over FedEx, beginning air delivery service in 1929.   Although FedEx was the first to own and operate their own planes and introduced the innovative “hub and spoke” distribution pattern, UPS leads in specialized transportation and logistics services. In 1975, UPS promised package delivery to every address in the United States; FedEx was not able to guarantee delivery in every area.   When deregulation of the domestic airline industry and trucking industry occurred, the operating landscape changed, and FedEx became the beneficiary by expanding its delivery fleet.   The just-in-time supply movement enabled FedEx to grow as well by creating a larger demand for express delivery.   Technological innovations, such as its package tracker, assisted FedEx in improved customer service; UPS was able to services to the entire US and over 200 countries, delivered over 13 million packages and achieved profits of $3 billion and keep pace with technological innovations of its own, such as its own package tracker.   UPS’s key to success was and remains efficiency, timing all delivery routes to traffic signal patterns for example.   UPS also expanded into Canada and Germany before FedEx.   In recent years UPS has invested heavily in information technology, aircraft and other facilities. Competitor comparison UPS went public in 1999, starting direct stock competition with FedEx offered package delivery AAA bond rating in 1983 Operational leader reached $1 billion in revenues during 1983 and was poised to own the market for express delivery.

Determine how each corporate culture differs from the other. The two companies I have decided to discuss in this term paper is Federal Express (Fed Ex) and United Parcel Service (UPS).   Both of these companies are logistic companies which specialize in delivering freight, cargo, and shipping services.   Both of these companies cater to customers by making door to door deliveries locally and internationally.   Both companies have both ground and air shipments but their prices do vary.   UPS on the other hand allows their employees to form unions and this means employees of the latter have some advantage when it comes to salary increases, retirement benefits and other employee benefits that are enjoyed by other employees from other companies. Both FedEx and UPS have the same shipping options which are done through air and by land. However, when it comes to land transportation, UPS is leading due to the fact that the ground services offered by UPS are 5 times larger than that of...
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