The Battle for Value, 2004: Fedex Corp. Vs. United Parcel Service, Inc.
The Battle for value, 2004: FedEx Corp. VS. United Parcel Service, Inc.
One-page Summary:
In the case FedEx and UPS both are high strongest package-delivery companies in the U.S and Worldwide. Also FedEx Corporation and United parcel service, Inc., the only U.S all-cargo carriers then permitted to serve the Chinese market. FedEx started at 1971, in the 1973 is the first night of continuous operation, in that time only 186 packages overnight to 25 U.S cities. But by 1976 FedEx the profit of$3.6 million on average daily volume of 19000 packages. In the 1981, FedEx have highest industry revenue in the U.S air-delivery company. After that in the 1990s FedEx was awarded the prestigious Malcolm Baldrige National Quality from the president of the United State. FedEx was the only one win in the service category. UPS began in 1907, before UPS is bicycle-messenger service, after UPS merges with a rival firm, Motorcycle Delivery Company, this company focus on department- store deliveries. Until to 1940 the name became to UPS. In 1990, UPS initiated IPO and two for one stock split, allowed more investors to join, UPS became another strongest package-delivery companies in the U.S. FedEx and UPS competition in the industry had started to rise.
The battle between UPS and FedEx is which company can capturing Chinese market. Because U.S and China have announced the agreement on build air-cargo hubs. FedEx has advantage than UPS, First FedEx uses they had own plan to transport packages, however UPS uses the passenger airlines to transport packages. FedEx has the largest foreign presence in China, FedEx as flight twice much as UPS. Second FedEx treat employee well, however in the quest for efficiency, UPS’s employee works under great stress. Third FedEx have great reputation than UPS, FedEx had awarded honor from president of the United State. UPS does not have. However UPS also have advantage than