Advantages and Disadvantages of Fedex and Ups
Autor: freedommichael • March 14, 2015 • Essay • 1,154 Words (5 Pages) • 4,615 Views
What are the advantages and disadvantages of FedEx and UPS?
This essay critically analyses two giant competitors in the package delivery industry: Federal Express Corporation (FedEx) and United Parcel Service, Inc. (UPS). Both corporations have achieved a great success on a global scale. FedEx Express currently serves hundreds of cities and markets with its intercontinental and international express services [1]. It founded in 1973 and has developed to serve and reach every corner of the world. FedEx committed to offer the best services to customer and pursue the highest professional and ethical standards. United Parcel Service, Inc. (UPS) began in 1907 as a messenger company. Then, the company has developed into a multi-billion-dollar corporation, which concentrates on the goal of enabling commerce around the world. Today, United Parcel Service Inc. is one of the most recognised and admired brands in the world. It is a leading provider of logistics, specialised transportation, capital, and e-commerce services [2]. Both FedEx and UPS are often on ‘Fortune’ magazine’s list of the most admired global companies. Therefore, as two of the largest global courier companies, theirs competition has never ceased over the years. In this essay, ‘SWOT’ analysis method will be adopted to examine the rivalry between United Parcel Service (UPS) and Federal Express Corporation (FedEx), as well as to compare their advantages and disadvantages.
According to the article of FedEx Express SWOT analysis [FedEx, 2004], FedEx provides people with various services, such as logistics solutions, overnight courier services, and business support services. The company's retail business is droved by powerful brand image. The powerful brand image besides driving domestic revenues facilitates international expansion as well. However, industry’s strong competitive landscape may exert additional pressures on the company’s operations and could adversely impact FedEx's performance. According to the article of United Parcel Service Inc. SWOT analysis [2004], UPS is one of the largest global package delivery companies. The integrated global network and strong financial support of UPS enables the company to deliver sustainable business growth and capture profitable opportunities across the world. Here is a table about the SWOT analysis of FedEx and UPS:
Federal Express Corporation (FedEx) | United Parcel Service, Inc. (UPS) | |
Strengths | a) Powerful brand image | a) Integrated global network provides |
Weaknesses | a) Unfunded employee post-retirement benefits | a) High dependence on the US market |
Opportunities | a) Network expansion | a) Expansion of global healthcare network |
Threats | a) Intense competition | a) Intense competition |
Table 1 [FedEx & United Parcel Service Inc. 2014]
Strengths
FedEx has a powerful brand image. As one of the world’s largest express transportation companies, FedEx Express offers time-certain delivery to over 220 countries and regions, connecting markets that account for more than 90% of the gross domestic product of the world [FedEx, 2014]. In addition, the company is amongst the most famous global express delivery services segment. For instance, during 2013, the company was ranked sixth in FORTUNE magazine's World's Most Admired Companies list.
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