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FedEx Will K eep Delivering to the World on Time

FedEx Will K eep Delivering to the World on Time. Competitive Analysis Project. A quick overview of our companies. FedEx (FDX). UPS (UPS). Atlanta, GA 410,000 employees Scott Davis . Memphis, TN 280,000 employees Fred Smith. FedEx and UPS make 64% of their industry’s revenue.

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FedEx Will K eep Delivering to the World on Time

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  1. FedEx Will Keep Delivering to the World on Time Competitive Analysis Project

  2. A quick overview of our companies FedEx (FDX) UPS (UPS) Atlanta, GA 410,000 employees Scott Davis • Memphis, TN • 280,000 employees • Fred Smith

  3. FedEx and UPS make 64% of their industry’s revenue

  4. Porter’s Five Forces • New Entrants: • Low Power • High Fixed Costs • Customers: • High Power • Low cost to switch companies • Suppliers: • Low Power • Easy to buy from various companies • Industry Rivals: • High Power • Equal competitive power • Substitutes: • Low Power • High switching costs • Commodity

  5. FedEx understands that it’s success lies in its opportunities

  6. “A successful shipping company is adaptable, technologically advanced, able to grow financially, market itself well, and reach out to a global customer base”

  7. Adaptable Technological Financial Growth Marketable Globalized

  8. Current events affect shipping industry Rising Oil Prices BP Oil Spill Lowers Stock Prices 2009 Recession: FedEx suffered more

  9. Recession has impacted UPS

  10. ROS for FedEx plummets due to increased expenses

  11. UPS has higher EM than FDX

  12. UPS is more dependent on debt than FDX UPS consistently has a higher EM then FDX

  13. Ratios that are inconsistent with Industry

  14. FedEx aims to achieve full customer satisfaction UPS - In-store copy machines FedEx - Purchased Kinkos  FedEx Office - Print Online & Have it Shipped

  15. Adaptable Technological Financial Growth Marketable Globalized

  16. FedEx leads technologically FedEx UPS Large-business oriented “It just works” Quantum View Tracking system Very basic web presence • Innovative solutions to real world problems • SenseAware technology: Medical package tracking • More intuitive web experience

  17. Adaptable Technological Financial growth Marketable Globalized

  18. FedEx has greater opportunities to grow

  19. Doing business with the environment in mind • Similar objectives • Technology • Fuel efficiency • Differing objectives • Carbon neutral option (UPS) • Energy (FedEx)

  20. Adaptable Technological Financial Growth Marketable Globalized

  21. UPS competes with FedEx to differentiate their similar products

  22. UPS’ We Heart Logistics commercials reach people everywhere UPS • “That’s Logistics” ad music • Global interaction • Use of NCAA famous coaches FedEx • Use relatable people in commercials to show how their products meet customers’ needs

  23. FedEx uses Market Segmentation to differentiate itself from competitors • Goal: Operate independently yet compete collectively. • Better serve customer needs • Each segment can better concentrate on its own market

  24. FedEx provides relatively greater value Rates based on a 5 lb package shipped from MA to CA

  25. Adaptable Technological Financial Growth Marketable Globalized

  26. Competition arises as companies try to globalize FedEx UPS 20% of revenue from international shipments Dominant carrier in Europe 311 jets, 22 on order • 23% of revenue from international shipments • Dominant carrier in Asia • 664 jets, 62 on order

  27. FedEx Will Keep Delivering the World on Time FedEx • Increasing internationally • Using innovation to grow UPS • Holds greater market share

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