Fedex Paper

6620 Words27 Pages
Blue = Leighton Red = Karissa Brown = Adam Black = Jane The Battle for Value, 2004: FedEx Corp. vs. United Parcel Service, Inc. FedEx will produce superior financial returns for shareowners by providing high value-added supply chain, transportation, business, and related information services through focused operating companies competing collectively, and managed collaboratively, under the respected FedEx brand. FedEx Mission Statement (Excerpt) We serve the evolving distribution, logistics, and commerce needs of our customers worldwide, offering excellence and value in all we do. We sustain a financially strong company, with broad employee ownership, that provides a long-term competitive return to our shareowners. UPS Mission…show more content…
While FedEx chose the strategy of a local partnership, UPS chose to enter the market alone. In 2005 UPS bought out the remaining shares of gained ownership of Sinotrans. This gave UPS 89 operating facilities in 45 different locations, covering over 330 cities throughout China. There are challenges though: * Foreign airlines cannot run domestic routes * EMS, the local parcel delivery service, is less expensive than the entering international companies (FedEx, UPS, DHL, etc.) * Brand recognition is low on the mainland, this goes back to Chinese culture of keeping with tradition (including traditional companies) UPS was able to overcome this with their participation in the Olympic Games (Charlotte - Business) The air-express segment of the domestic package-delivery market – including letters and packages, overnight, deferred and air or air-and-ground - made up $25 billion of the $45 billion industry (Bruner & Carr, 2010) and is a key driver for both firms in Asian territories (Bruner & Carr, 2010) along with commercial volume. FedEx and UPS Goals: the tortoise and the hare FedEx and UPS, although competitive and both aggressively targeting the Chinese market, approached the challenge with slightly different goals. These goals, which coincide with the
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