UPS/FedEx

Résumé du document

United Parcel Service is a package delivery services company. Headquartered in Georgia, United States, UPS delivers more than 15 million packages a day to 6.1 million customers in more than 200 countries and territories across the world. UPS is well known for its ground package delivery. Nowadays, UPS also operates its own airline based in Louisville, Kentucky where its Worldport air hub is also located.

Extraits

[...] The competitiveness in the package-delivery industry pushing prices down and squeezing margins is a major risk for both UPS and FedEx. Yet, since those two depends on their workers for deliveries, there are some risks associated with the human factor that must be considered. (Late, wrongly delivered, damaged packages, lost packages, or even strikes). Moreover, their strategy of expansion to other countries may be threaded by changes in political alliances between the countries involved in the shipping process. Tariffs and other political barriers may be created as retaliation or protectionism to the national industry in the “receiving country”. [...]

[...] UPS/FedEx United Parcel Service is a package delivery company. Headquartered in Georgia, United States, UPS delivers more than 15 million packages a day to 6.1 million customers in more than 200 countries and territories around the world. UPS is well known for its ground package delivery. Nowadays, UPS also operates its own airline based in Louisville, Kentucky where its Worldport air hub is also located. Question What do you think about the 3 opportunities mentioned (globalization, e-commerce, scm)? During the late of the 1990s, Globalization and supply chain management became more and more important and the e-commerce appeared at the same time. [...]

[...] What are the strengths and weakness of UPS versus FedEx? In the package-delivery industry timely, efficiency and speed, accurate and competitively priced services are the key success factors. Moreover, the ability to provide low cost access to customer's information about the location and contents of packages is an important success factor. UPS Strengths: One of the major strength of UPS is the size of the company. UPS services 610 airports worldwide in comparison to the 325 serviced by FedEx. This global reach allows UPS to service more customers, reap larger revenues than competitors. [...]

[...] UPS's strategy is a good choice because the online B2C sales are such a big market and UPS was the first comer in this domain: the preferred shipper for online commerce and a pioneer on returns on the web. Globalization is also very important to be taken into account, especially for activities which can be delocalized. For package delivery industry, the local to local delivery is not very affected by delocalization, but the international delivery is. DHL is a good example and leader in this domain. For this point, UPS strategy was not very good at the beginning, because it focused on the U.S. domestic market instead of developing its international network. [...]

[...] Question Suggest a price for UPS stock Comparing UPS with Fedex seems relevant because it is its major competitor. Fedex Stock is valuate at 41,50$, so UPS stock should be approximately the same, a little more or less, depending of the company revenue and evolution. UPS revenue is a little more important than Fedex's (19,6 vs 16,8 billions as UPS is starting an innovative strategy, expanding its international activity, developing in e-commerce and supply chain, we can expect that the company acquired market share during the next years. [...]