ups vs fedex battle case study
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UPS and FedEx are two of the largest package delivery companies. UPS was founded in 1907 and grew to over 350,000 employees and $29.77 billion in revenue by 2000. FedEx was founded in 1971 by Fred Smith and grew to over 215,000 employees and $18.3 billion in revenue by 2000. While UPS has more employees and higher revenue, FedEx focuses on advanced technology and global expansion to support its strategy. Key resources that support UPS's strategy include its large fleet of vehicles, focus on customer service, and talent acquisition.
ups vs fedex battle case study
- 1. Konok Kumar Mondal ID:1407016 Vs
- 2. Topics to be Covered • Introduction: UPS & FedEx • History • Relative Comparison • Ques-1: what resource does UPS have to support its strategy? • Ques-2: Assess FedEx internal resource?
- 3. UPS History Started in 1907 by 19 year-old Jim Casey then called American Messenger Company. Became Unite Parcel Service of America in 1929 and began shipping packages on commercial airliners. By 2003 • 88,000 Ground Trucks • 583 Planes • 360,000 Employees • $2.9 Billion in profits on $33.4 Billion
- 4. FedEx History Business model conceived by Fred Smith in an undergraduate term paper. Invests $4 million of his own capital and raises and addition $91 million. Launches in 1971 By 2003 50,000 Delivery Trucks 625 Cargo Planes 217,000 Employees Handles 2 billion packages $22.5 Billion with 37% margins
- 5. Head-to-Head: UPS Vs FedEx UPS Fedex Founded 1907 1971 2000 Revenue $29.77 Billion $18.3 Billion Net Income $2.93 Billion $688 Million Employees 359,000 215,000 Daily Package Volume 13.2 Million 5 Million Fleet 152,500 Trucks, 560 Planes 43,500 Trucks, 662 Planes
- 6. Ques-1: what resource does UPS have to support its strategy? • Investigate core business of worldwide distribution and logistics • Rely on DIADs • Attracting talented people • Studying customer behavior • Anticipating customer needs • Practicing innovation for growth • Assure Quality service • More focused integration of goods, funds and information
- 7. Ques-2: Assess FedEx internal resource ? ▫ Product quality ▫ Global expansion ▫ Advanced Technology oriented ▫ Air fleet ▫ Global business growth ▫ Online consumer services ▫ Increase demand in logistics