Airborne's Rivalry

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

In the past there was no thing as overnight express delivery for packages or freight. Then the top 3 competitors in the delivery service industry that held 85% of the market were Airborne Express (AE), United Parcel Service (UPS) and Federal Express (FedEx) and, the remaining market share was among six second-tier companies. In the past few years, the express mail businesses had grown extremely fast due to the ability to provide and fulfill overnight shipping accompanied by next-morning delivery services for both individuals and businesses customers. By 1996, this segment of the expedited shipment delivery had grown to a $16-17 billion dollar industry business in the US alone.

The overall performance of United Parcel Service (UPS) during the past year was good. The company 's ROI for the last five year is 14.27 while the industry average is only 12.70. UPS is the market share leader in the express delivery market with a 53% share of the market, and 50% in the ground shipping industry (Lazich, 2007). Based on its Net Profit Margin, Return on Assets, and Earnings per Share the company 's profitability is strong. Overall, UPS performed well in 2006.

The next match for Kamikaze Pro – Battle Lines on Saturday June 4th will be a match between 2 former tag team partners with the Money In The Bank briefcase up for grabs in the longest running rivalry in Kamikaze history.

In any organization, financial analysis is one of the most basic parts of evaluation of a company operation in any business environment. As businesses operate, it is very important that the managers know the real environment for which a firm carries out its activities. The competitions evident in the market are substantial to the decision making process of a firm. Also, firms need to give much attention to the market forces of a particular industry to make sure that they are able to make these forces turn to their advantage. This paper will indicate the UPS 's bussiness enviroment, porter’s five forces, trends in the package delivery industry ,factors for success in the UPS 's industry, UPS 's relative strengths, the appropriate benchmark companies for valuation purposes, and the UPS 's accounting policies and methods,.

As the U.S. package delivery business segment matured, International segment became the battle ground for the two package delivery giants – FedEx and UPS. FedEx is considered to be the innovative, entrepreneurial, inventor of customer logistical management, and an operational leader. UPS, on the other hand, is considered to be big, bureaucratic, and industry follower, although UPS is shedding this negative image with newer innovations.

UPS has a first mover advantage over FedEx, beginning air delivery service in 1929. Although FedEx was the first to own and operate their own planes and introduced the innovative “hub and spoke” distribution pattern, UPS leads in specialized transportation and logistics services. In 1975, UPS promised package delivery to every address in the United States; FedEx was not able to guarantee delivery in every area. When deregulation of the domestic airline industry and trucking industry occurred, the

When it comes to rates, both of these companies vary in prices by just a dollar or a few. Some of the services they offer have the same rates as well. But just recently, both these companies have adjusted their pricing scheme due to increasing fuel prices. FedEx has slowly gained in competition with UPS in terms of revenue. In a year, FedEx averages about $22 billion in sales while UPS averages $30 billion a year. Sometimes you just have to face the fact that a company’s success is best measured by its results of operations. When it comes to the selling rates of their shares in the stock market, UPS is still number one with their stocks valued at $82 billion, while FedEx trails by a large margin selling only $22 billion dollars in stocks.

The purpose of this paper is to review the current market conditions for FedEx. Like many organizations, FedEx is faced with different market conditions on a regular basis. Team A has reviewed some of the market conditions and addresses which ones will or will not change. The research that Team A compiled together are conditions such as market structure, impact of new companies, pricing, technology, productivity, price elasticity, competitors, and several more. After reviewing the market conditions, Team A will show how FedEx has managed to continue growing in today's

After analyzing Federal Express’s value creation frontier, it can be determined that Fedex effectively exploited the amount of time it takes a package to be received by the customer. In 1977 Congress relaxed several regulations that controlled the air cargo industry. This was allowed Federal Express to be able purchase and control its own fleet of cargo planes. Thus, in 1981 Federal Express expanded its business into the overnight delivery market (Hill, 2013). Despite other competitors such as: UPS, USPS and Air

1907 19-year-old Jim Casey and 18-year-old Claude Ryan founded the American Messenger Company in Seattle, Washington, capitalized with $100 in debt. 1913 1919 The first delivery car appeared, a Model T Ford Service began in Oakland, California. The name United Parcel Service was adopted. 1930 A consolidated service began in New York, First mechanical system for package sorting. Accountant George D. Smith joined the company. 1940–1959 Services were expanded by acquiring "common carrier" rights to deliver packages between all addresses, any customer, private and commercial. 1952 1975 1976 Blue Label Air established UPS began servicing all of the 48 contiguous states of the USA. UPS established itself in Europe with a domestic operation in West Germany. Blue Label Air. 1982 UPS Next-Day Air Service is offered in the US and Blue Label Air becomes UPS 2nd Day Air Service. 1988 1999 2003 UPS Airlines is launched. UPS became a public company UPS unveiled a new logo, replacing the iconic package and shield originally designed in 1961 by Paul Rand. 2004 2005 UPS entered the heavy freight business. UPS completed the purchase of LYNX Express Ltd, one of the largest independent parcel carriers in the United Kingdom, for £55.5 million (US$97.1 million) after receiving approval for the transaction from the European Commission. 2007 United Parcel Service celebrated its 100th anniversary.

One of the major segments of the wider postal and cargo industries is the small package express delivery sector or industry, which is an increasingly complex and competitive sector. The complexity and competitiveness of this industry requires the use of combating and strategic approach to enhance the profitability of the small package express delivery industry. The contemporary express delivery industry in America originated from Fred Smith’s vision for the Federal Express Company that is commonly known as FedEx. FedEx has played an important role in the small package express delivery industry through the establishment of a system that contribute to the realization of next-day delivery of small package airfreight that weighs less than 70 lbs. The company has also been instrumental in the development of the use of standard packaging with a weight that exceeds 70 lbs. This role has contributed to FedEx’s value creation, product differentiation, and effectiveness of existing business model.

United Parcel Service (UPS) is a U.S. based company that specializes in international package delivery. The company was developed from a small messenger service which was created in Seattle in 1907 (Brewster & Dalzell, 2007). A 19-year-old man called James E. Casey, together with his friend Claude Ryan, established the messenger service with only two bicycles, a phone within a small office in a basement, and $100 which were borrowed from Ryan 's uncle. From this messenger service, the two young men laid the foundation for the growth of an international multi-billion dollar organization which is involved in the worldwide movement of goods, finances, and general information (Brewster & Dalzell, 2007). From its inception, UPS has grown to be the world 's biggest parcel delivery company. It is estimated that the Atlanta-based company delivers approximately three billion items in more than two hundred countries and territories per annum. The company owns an enormous fleet of vehicles, approximately around 88,000 in total. Also, UPS owns and operates the 9th largest airline business in North America. In regards to this, it has about 600 aircraft which are company-owned and chartered (Brewster & Dalzell, 2007). The global penetration of UPS has been observed to be gradually increasing raising its market share in many countries. However, the company’s U.S. operations have made the most significant impact on the overall business transactions. It has employed a door-to-door delivery

The United Parcel Service is one of the largest companies in the global courier delivery service industry, with a net income of about $3 billion and revenues exceeding $53 billion. Headquartered in the United States, a large part of UPS’s market share and revenues come from the business it conducts in Europe. The logistics design of UPS has three distinct functions, consolidation, distribution, and fragmentation. Consolidation is the collection of parcels to then be sent to distribution. Distribution works on a hub-to-hub basis with distance determining what mode of transportation will be used (Air or Ground). Fragmentation is the final design step in the UPS logistics design, combined with consolidation for the most part; this function is where products are delivered to their final destination. These basic functions have kept UPS a world leader in the logistics field and well ahead of their competitors.

In FedEx’s case, they were caught off guard by UPS when the latter usedits internally generated technology skills to offer e-tailers a multitude of shipping options and prices. Although both firms help customer better utilise information to track and ship inventory, UPS is pulling ahead of FedEx (Haddad & Ewing 2000). Rising fuel prices could also severely impact upon the company’s net income.