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Ups vs Fedex

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Ups vs Fedex
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.
Competitive Advantage
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 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
UPS FedEx
Offered package delivery services to the entire US and over 200 countries, delivered over 13 million packages and achieved profits of $3 billion, and AAA bond rating in 1983 Operational leader reached $1 billion in revenues during 1983 and was poised to own the market for express delivery
Restructured by becoming an aggressive company and expanding through acquisitions No unions
Acquired Miami based carrier with operations in Latin America Achieved $15 billion in

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