Question

UPS and FedEx Case Study

Success for a company comes in many different forms. It could be the bottom line, expanding market share, or pushing the boundaries of sustainability. Using the FedEx and UPS Documentary case study video and your own research, analyze the effect that either UPS or FedEx has had on the modern economy. When you are finished with your research, list and explain at least two effects that the company has had on the economy. Focusing on the company you chose to analyze, do you think it is positioned to remain an industry leader, or will it become stagnant? Explain your reasoning.

You can count this as 2 questions. Please make sure you write at least 500 words but not more than 550.

Answer 1

UPS and FedEx Case Study:

As UPS started in 1907 by19 year old Jim Casey then called american Messenger company then became unite Parcel service begin shipping passengers

United Parcel Service, Inc. (UPS) and FedEx Corp. (FDX) are two leading delivery services companies and main competitors to each other, at least in the public eye. However, to those following them closely, the two companies are quite different in their business models and strategies.UPS is widely known for its domestic ground package delivery, FedEx is mostly recognized for its global air express freight.

Actually UPS is also a common carrier in air freight while FedEx has a similar package delivery unit called FedEx Ground. UPS's ground package business and FedEx's air express operations are respectively, the bread and butter for each company.

The ongoing e-commerce development has played right into UPS's core business of small package delivery.

UPS manages all its businesses, such as air, ground, domestic, international, commercial, and residential through a single pickup and delivery network.

Online purchases require mostly regular local and regional deliveries as opposed to express, long-haul deliveries, which is more what FedEx does the best.

FedEx's strategy is for its different business units—such as express, ground, freight, and services—to operate independently. However, 96.8% of FedEx's clients use two or more of the company's separate operating units, according to customer

Conclusion:Because FedEx has more dissimilar operations from express to ground to freight a single network strategy would not work. However, for UPS, the different businesses it has are essentially all about small package delivery, and sharing a single network makes the most sense. It may be surprising to see that two delivery services companies can be so different in so many aspects of their operations. To many people, they look the same.

Online shopping has been a huge blessing to both FedEx and UPS. Total online sales are forecast to grow at an average annual rate of 9.3 percent over the next five years,The express industry makes a substantial contribution to the global economy. Countries that impose heavy restrictions on the operations of the express industry also undermine the competitiveness of companies across the wider economy. Removing restrictions would not only benefit the express industry but would also encourage increased trade, investment, and productivity.