FedEx Corp. vs. UPS, Inc.
FedEx was form in economic class by Fred Smith in Yale University. In 1971, Smith invested 4 million dollars of his own capital and raises an addition of 91 million dollars to launch the firm. His key innovation was a hub and spoke distribution pattern. By 2003, FedEx owned 50,000 ground vehicles, 625 aircraft, 216500 employees and shipped more than 5.4 million packages daily. The company had $15.4 billion in assets, $830 million net income, and generated $22.5 billion revenues.
UPS was founded in 1907 by Jim Casey. He started a bicycle messenger called American Messenger Company and changed its name to United Parcel Service of America in 1929. The success key of UPS was efficiency. …show more content…
UPS’s SWOT Analysis: STRENGTHS:Strong financial position, known for the largest package delivery in the world, brand recognition. | WEAKNESSES:Conservative financial strategy resulted in slow financial and operational progress, UPS’s stock was owned solely by UPS’s managers/ charitable foundations owned by UPS until 1999. | OPPORTUNITIES:Reinvest to enhance operation, improve service, add products, and expand business’s geographic presence. | THREATS:Labor unions and works councils, Other competitors’ innovation, price competition, changes in fuel price. |
Significant Dimensions: Dimensions: | FedEx | UPS | Customer Focus | Offer 10:30 a.m. delivery, FedEx home delivery network, Customer demands dictate operation model. | Minimizing impact on environment, improved customer service through supply chain, help customer dispose unwanted electronics through “Asset Recovery and Recycling Management service” | Price Competition | Higher price than other competitors | Low cost provider, Charges flat rate. | Operational Reengineering | Cost reduction through economic of scale and IT | Efficiency, Reduction in energy use and fuel consumption | Information Technology | The first to offer online shipping and tracking, Installed handheld barcode scanner. |