Question

Outline the financial strengths and weakness for UPS and FedEx.

Answer 1

Financial strength of FedEx & UPS

A. In case of FedEx it has highest global traffic and it is a leader in this space.

B. Emergence of electronic commerce has given a new competitive edge to these companies.

C. continuity in maintenance of expansion of the market size and expansion in the profitability of the business are other two factors which can be looked into for these two companies as strength

D. In case of UPS, it has a a larger market when it comes to to expanding through ground delivery and it is having the large market share.

Disadvantages which are related to both these companies are as follows-

A. these companies are often working upon thin profit margin and mismanagement can cause loss to them

B. These companies are are highly affected in this environment of covid-19 where there is lack of movement of goods and services.

C. there is a large amount of macro risk involved with functioning of this company as these companies are moving in line with growth and structure of the economy and it does not have its own market factors

D. the growth rate of these industries are not that fast because it has almost acquired the market and these are mature company.