Fedex vs Ups
2. Prepare to describe in class the competition in the overnight package delivery industry, and the strategies by which those two firms are meeting the competition. What are the enabling and inhibiting factors facing the two firms as they pursue their goals? Do you think that either firm can attain a sustainable competitive advantage in this business?
Competition in the express delivery Market
The $45billion US domestic delivery market could be categorized into 2 segments. These consisted of letters weighing 0 to 2 pounds, …show more content…
Until the stock split and IPO in 1999, the financially and operationally conservative company had been perceived as slow and plodding. Although larger than FedEx UPS had not chosen to compete directly in the overnight delivery.
After going public UPS initiated an aggressive series of acquisitions, beginning with a Miami based freight carrier operating in Latin America and franchise based chain of stores providing packing, shipping and mail services called Mail boxes with more than 4300 domestic and international locations.
The UPS of the new millennium was the product of extensive re-engineering efforts and revitalized business focus. While the company had traditionally been the industry’s low-cost provider, in recent years the company had been investing