Essay - UPS Versus FEDEX an Analysis of the Relative Strengths and...

UPS versus FedEx

***** analysis of the relative strengths and weaknesses ***** FedEx ***** UPS is best done in the context of ***** external environment ***** the Parcel Services Industry since such an approach will highlight the prospects of each company in the face of ***** trends ***** as globalization, mass customization, the growth of ecommerce, and the bus*****ess emphasis on logistics and supply chain management. For instance, FedEx's current strength as the uncontested leader of the air express industry ($11.2 billion in revenues compared to UPS's $ 8.8 *****) h***** primarily been gained through an early focus on speedy, reliable delivery (650 pl*****es versus UPS's 340) that was designed ***** capitalize on the weaknesses in the freight system of commercial passenger *****l*****es and the ***** ***** global trade. FedEx was also the first to spot the opportunities in the growth of Information Technology and ***** increased business ***** on just-in-time inventory, mass *****, and global supply chain management. Thus, FedEx was able to quickly ********** its customers the benefits of automated package tracking, logistical services, and computerized pickup *****.

If FedEx built it ***** on the strength of its air express ***** and technological leadership, UPS did the same in ground transportati***** using ***** larger fleet (153, 000 trucks versus FedEx's 44,000) ***** strategy of building route density, productivity, and cost efficiency. While UPS, admittedly lagged behind FedEx in keep*****g pace with environmental trends, it is interesting to note that the company is now closing the gap quickly through addressing the weaknesses in its competitor's bus*****ess model. Today, it is UPS, which is in a stronger pos*****ion. ***** ********** this turnaround by integrating its online and core business practices, developing an open system ***** ***** services, and offering customers price ***** service flexibility. This strategy has not only allowed UPS to gain the ***** position in ***** online business segment, it has also resulted in the company's air ***** delivery bus*****ess growing at more than double ***** rate.

A prima facie comparison of FedEx and UPS may lead ***** the conclusion that ***** is UPS that is *****ly better placed today. However, a closer analysis will reveal that FedEx can easily match *****'s ***** competitive advantages with more investments in Information ***** and an exp*****ed ***** transportation system. But there is one competitive advantage that UPS enjoys, which FedEx ***** ***** find ***** easy to match or leapfrog. And that ***** in the area of cost leadership where UPS is undoubtedly ***** industry leader!

References

Cohen, I. (2002, October). The ***** Service Industry 2002: UPS versus