UPS vs. FedEx case Analysis

3161 WordsMar 14, 201413 Pages
[Type the company name] FedEx vs. UPS Brief History of FedEx & UPS In 2004, the U.S. and China agreed to increase their air transportation flights, which delivered their goods between one another. This agreement represented the most dramatic liberalization of air traffic in the history of the two nations, and therefore FedEx Corporation and United Parcel Service, Inc. (UPS), the only domestic cargo carriers who were permitted to serve the Chinese market at the time were locked in to being the primary beneficiaries of this opportunity. The stock prices for both companies had rose on steady basis since these talks originally began, but FedEx share price skyrocketed five…show more content…
By year’s end of 2003, FedEx nearly had $15.4 billion in assets and a net income of $830 million on revenues of about $22.5 billion. United Parcel Service, Inc. United Parcel Service, Inc. also known as UPS was founded in 1907. It was the largest package delivery service company in the world. Consolidating parcel deliveries, both on ground and in the air, was UPS primary business focus of the company. In the industry UPS was known as “Big Brown” with its roots stemming from Seattle, Washington. Jim Casey at 19 years of age started a bicycle-messenger service called the American Messenger Company, but after merging with rival firm, Motorcycle Delivery Company in 1929, United Parcel Service of America (UPS) was formed. UPS started an air delivery service by putting packages on commercial passenger planes. The company entered its strongest period of growth during the post-World War II economic boom, and by 1975 UPS reached a milestone where it could promise package delivery to every address in the entire U.S. In that same year UPS expanded outside of the country with their first delivery to Ontario, Canada. Following that year UPS trademarked 120 brown delivery vans and began service in West Germany. The key to UPS’s success was their “efficiency”. According to Business Week “Every route is timed down to the traffic light. Each vehicle was engineered to
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