Advantages And Disadvantages Of FedEx And UPS

1144 Words Feb 25th, 2015 5 Pages
What are the advantages and disadvantages of FedEx and UPS?

This essay critically analyses two giant competitors in the package delivery industry: Federal Express Corporation (FedEx) and United Parcel Service, Inc. (UPS). Both corporations have achieved a great success on a global scale. FedEx Express currently serves hundreds of cities and markets with its intercontinental and international express services [1]. It founded in 1973 and has developed to serve and reach every corner of the world. FedEx committed to offer the best services to customer and pursue the highest professional and ethical standards. United Parcel Service, Inc. (UPS) began in 1907 as a messenger company. Then, the company has developed into a multi-billion-dollar
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[FedEx, 2014]
UPS is highly dependent on the US market for its income. In FY2013, the 75.3% of the company’s total revenues comes from US. [United Parcel Service, 2014] They heavily rely on the US markets, if the economy and the company's sales in the US do not grow as expected, it could have a negative effect on the company's revenues. Moreover, the concentration of operations in this area increases UPS’ exposure to country specific factors such as changes in raw-material prices, labour strikes, changes in economic conditions, and most importantly, increasing competition from the low-priced products.
Opportunities
FedEx’s growth in business performance relies heavily on the growth of its network expansion. For instance, FedEx Trade Networks launched its new operations in Dublin in June 2013, which complies with its expansion strategies. Before this, FedEx already had 23 offices across European. [FedEx, 2014] The establishment of Dublin offices marks the first time that FedEx enters Ireland market. It enables customers with an enhanced access to other markets with the company’s variety of shipping and freight services and solutions.
UPS healthcare is now confronted with challenges in many levels. On the one hand, its existing drug patens are gradually expiring its time limit. On the other hand, it has to conform to the transforming

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