Business Analysis : Fedex And Ups Essay

2034 WordsDec 10, 20169 Pages
DHL 31%, USPS 8%, FedEx 27%, and Amazon 3%. From these numbers Amazon is a very small player in the shipping department. Every competitor, expect DHL, are currently shipping the excess freight that Amazon cannot maintain. With Amazon 's move to acquire more of the market, these competitors need to be on the lookout because portions of their market share can be taken away. These major shipping firms only provide shipping services not offering household products like Amazon. With Amazon starting by semi-supplementing their shipping avenues, Amazon has the potential to grow even larger. The market cap numbers are not a good basis to judge market share on since FedEx and UPS have the majority of the market in the shipping industry. FedEx and UPS are the major competitors against Amazon and its new shipping department. FedEx and UPS had the most recent annual net income of $50.3 billion and $58.3 billion respectively. They represent the majority of packages delivery from individuals, businesses, and online retailers. Exhibit #4 shows the huge amount of market share that Amazon has over its competitors in the retail service sector and exhibit #5 shows the market shares based on shipping revenues for the shipping competitors. With Amazon 's huge product list and supplies ranging from household items to cloud space, they are able to get the majority of the consumers to buy from them. This one stop shop mentality has really paid off for Amazon and its forward momentum only looks to

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