ICMR Case Collection ICFAI Center for Management Research FedEx vs UPS: Competing with Contrasting Strategies in China MKTG069 - Sample Questions and Answers This case was written by Vivek Gupta‚ ICFAI Center for Management Research (ICMR). It was compiled from published sources‚ and is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. For use by students of Icfai Flexible Learning programs. Not
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1. Accounting Treatments Capital Lease -Lessee Initially‚ the lessee recognizes the asset under his property‚ plant and equipment. The amount that should be debited is the Lower of asset’s fair value and present value of minimum lease payments. The present value is determined by discounting minimum lease payments using interest rates implicit in the lease. Also‚ initial direct cost that the lessee incurs in relation to the lease is added to the cost of recognized asset. On the credit side of
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[Type the company name] FedEx vs. UPS Brief History of FedEx & UPS In 2004‚ the U.S. and China agreed to increase their air transportation flights‚ which delivered their goods between one another. This agreement represented the most dramatic liberalization of air traffic in the history of the two nations‚ and therefore FedEx Corporation and United Parcel Service‚ Inc. (UPS)‚ the only domestic cargo carriers who were permitted to serve
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The Battle for Value: FedEx vs. UPS When two industry giants go head to head‚ a great deal of strategy is involved mixed with pure brute force. When two package delivery giants go head to head such as FedEx and UPS‚ they must draw upon their strengths and improve their weaknesses if they hope to win the battle. Adopting innovative technology options and precise operations are just a few crucial strategies that can help a company emerge as a leader. 2004 marked a monumental year in package delivery
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business models. UPS which was founded in 1907 as a messenger company in the United States has grown into a billion dollar corporation. FedEx Corporation was founded in 1971 as the first next day air supplier and today profits are also in the billions. Which leads us to the question‚ which one of these companies are better managed and which one is the better investment? The companies’ financials stack up like this: UPS has annual revenues of $36 billion‚ while FedEx has $26 billion. But UPS has a market
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The Battle for Value‚ 2004: vs. United Parcel Service‚ Inc. (“UPS”) and FedEx Corp. (“FedEx”) are two of the largest air delivery and freight services. With the current transportation agreement between the United States and China the market in which these companies conduct business is going to grow. This is a positive agreement for both UPS and FedEx‚ meaning that both companies are attractive in terms of investing. However‚ it is recommended that only one of them
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CASE STUDY FEDEX VS UPS VS HYDER MUNAVER 29-MAR-05 The Introduction: In today’s’ fast moving world delivery of packages‚ parcels‚ documents‚ goods in a timely and guaranteed manner is of absolute importance. With the fast moving trend of online businesses‚ auctions etc.. The need for fast and reliable package delivery is growing. The logistics industry has received globally‚ a lot of publicity regarding the industry’s attitudes on‚ and actions in‚ corporate responsibility issues. The different
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COMMUNICATION COMPARISON 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
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industry: Federal Express Corporation (FedEx) and United Parcel Service of America‚ Inc. (UPS). 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"
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History In 1913‚ C.J. Tower & Sons‚ forerunner to FedEx Trade Networks subsidiary FedEx Trade Networks Transport & Brokerage‚ begins operation as a customs broker in Niagara Falls‚ N.Y. It was not until 1971 that Federal Express Corporation was founded in Little Rock‚ Ark. In 1975‚ FedEx installed the first drop box for the public and since then the company developed and maintained a strategic leadership in managing a broad group of transportation services‚ e-commerce and other business services
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