Fedex vs. Ups

Today UPS ship’s cargo every single day to people all across the world. The fleet of airplanes they have is one of the best in the world. UPS has, according to airfleets.com, fifty three Airbus A300, forty seven Boeing 747, seventy nine Boeing 757, fifty nine Boeing 767, and forty two McDonnell-Douglas md-11. That’s a total of two hundred and seventy two airplanes to one company. Some of those planes are not in service though. UPS has two hundred and thirty seven aircraft active. In sixty two years they have grown to be one of the largest air fleets in the United States

UPS's primary business is the time-definite delivery of packages and documents worldwide. In recent years, UPS has extended its service portfolio

Throughout the 1990s UPS shifted from a national delivery company to a global company, this is credited to their entrance into the air delivery business. In 2001 United Parcel Service acquired Mail Boxes Etc. This led to the largest re-branding campaign in history and also initial entrance into the India Market.

UPS has nothing on Fedex, UPS is a quantum particle, ever changing. From their service, so slow not real and inconsistent. Fedex is nothing less than a supermassive black hole. Colossally enormous, unimaginable in size, so big in fact to keep consistent with

Researching the market landscapes and competitive environment was difficult but UPS has reports that they have to do yearly in which I found very helpful with this part of my paper. UPS’s main competitors in the United States are FedEx and the United States Postal Service. Some of their competitive advantages are in the departments involved in freight and ground shipping. FedEx is known for next-day air service deliveries and USPS is residential mail and small

Studying FedEx, UPS and their competitive relationship in the decade from mid - 80's to mid - 90's gives a good insight for the companies' and industry's future. The two companies have different strategic goals and are operating in the same industry but in different main markets: FedEx is working on "producing outstanding financial returns" and focuses on the overnight air market while UPS is looking for "earning reasonable profit" and its core business is the two-day ground delivery. However, by 1981, the two companies started to have a strong sense

The United States Postal Service competes with UPS and also is a support role for UPS. Currently the USPS is a competitor of UPS, providing door to door delivery of parcels six days a week. The USPS is using a low-cost rate play while losing billions of dollars each quarter (Katz, 2015). UPS also uses the USPS for the last leg of delivery in the supply chain. UPS costs increase when delivering a ground package to a very rural destination. UPS works with the USPS to deliver packages while adding one additional day in transit under a deferred shipping service called Surepost (Cordell, 2015). UPS also uses a bulk mail service called UPS Mail Innovations to delivery media mail and small parcels (What is UPS Mail Innovations, n.d.).

By capitalizing on this strategy, FedEx was able to boost its average delivery volume in 1976 to 20,726 packages per day via its three services, Priority-One, Standard Air, and Courier Pack, compared with an average of 10,521 delivered daily the prior year. Clearly the company’s calculated use of strategically-located hubs, nighttime flight routes, and limited package size allowed the company to carve out a niche by reliably delivering packages on an immediate, overnight basis.

UPS is a global package delivery business that specializes in not only managing the movement of goods, but the information and funds that moves with those goods in more than 200 countries and territories worldwide. UPS’s target market is primarily U.S. companies that ship business to business via ground delivery and whose delivery time is not

Traditionally, we have been taught that there are some simple ratios such as Net Income Assets (ROA) or Net Income over Equity (ROE) that allow you to gain a broad understanding of the firm's profitability. Table: Profitability has calculated the broad ROA and the traditional ROE is similar to the decomposed ROE. These numbers show that Net Income for FedEx is comparatively much smaller than UPS's Net Income in relation to assets and equity. For each dollar invested in equity UPS earns 23 cents versus FedEx's 15 cents per dollar of equity. Likewise, UPS earns 11 cents versus FedEx's 7 cents per dollar of assets.

United Parcel Service (UPS), is the world’s largest express package delivery firm that handled more than 4.7 billion packages and documents in 2015. This global transportation and logistics service provider operates in more than 220 countries, and offers an array of supply chain management solutions (UPS Fact Sheet, n.d.). The firm has diversified its products and/or services to include freight forwarding and logistics services via air, ground, rail, and sea. U.S. Domestic Package operations, International Package operations, and Supply Chain and Freight operations are the three operating segments UPS. Through technology advancements UPS delivers online package tracking, e-commerce services, and specialized

FedEx was first established in 1973 as a logistic company with the name Federal Express that be created by founder and first CEO Frederick W Smith. The Headquarters is in Memphis, Tennessee in the US. The company became well known for its fast and reliable delivery service around the world. On its first night of operation FedEx delivered 186 bundles to 25 urban locations in the US with only 389 employees and a 15 Dassault Falcon aircraft. In 1980 FedEx purchased a system for live updates on the packages. In this system, FedEx drivers share the current locations from the trucks to provide updates of the packages to the customers. This information was sent to a central computer of FedEx then the company improved the update system by introducing FedEx.com webpage. This webpage allowed the tracking data to be easily accessible. However, recently, FedEx uses Savvy bundle for packing and tracking the products across couriers. (Baldwin, 2016)

UPS and FedEx are the leading parcel carriers in the U.S. FedEx has significantly expanded their capability to compete with UPS’s dominant ground delivery service.

UPS is larger with 3 billion in net income with revenue over 50 million, while FEDEX has income of over 2 million with over 30 billion in annual revenue. The truth of the matter is that more and more consumers are purchasing goods online. Throughout the world online buying has grown exponentially. According to the latest Nielsen Global Online Survey, more than 85% of the world 's online population has used the internet to make a purchase . Thirty four percent of those prefer to do all their shopping online. Data is stating that consumer online spending is projected to increase by about $10 billion within the next five years. Although consumers are still a little reluctant to purchase online, more and more of them are prepared to buy on the web. Faster delivery, easier return policies, and many sites offering free shipping have also increased the desirability of online buyers. Physical stores are moving at least part of their companies online in order to cut costs. Companies like Borders have become strictly online. I am personally predicting that more companies will follow suit or will use third party corporations like Amazon.

FedEx is considered one of the most successful companies in the world. When founder Fred Smith was in college, he wrote a paper that outlined a system that would deliver time-sensitive items quickly (fedex.com). In 1971 his idea came to life and FedEx was born in Little Rock, Arkansas (fedex.com). In the 45 years they’ve been operating they still keep their “Purple Promise.” That’s the nickname of their motto to make every FedEx experience outstanding (fedex.com). Innovative services such as overnight shipping needed to match with excellent customer service.