Final Ups Fedex Usps

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  • Final Ups Fedex Usps

    1. 1. TEAM 1224108101 1224108111 1224108121 1224108131 1224108141 1224108151 1224108161
    2. 2. <ul><li>UPS versus FedEx </li></ul><ul><li>versus USPS </li></ul>
    3. 3. <ul><li>FedEx </li></ul><ul><li>(Federal Express) </li></ul><ul><li>Started by Frederick Smith in 1971 </li></ul><ul><li>First Investment </li></ul><ul><li>1980’s: </li></ul><ul><ul><li>FedEx reached its maturing stage. </li></ul></ul><ul><ul><li>First US company to reach $1 billion in </li></ul></ul><ul><li>revenues. </li></ul><ul><li>FedEx handles 3.3 million packages </li></ul><ul><li>History of FedEx Express </li></ul><ul><li>Frederick W. Smith incorporated Federal Express in June 1971. </li></ul><ul><li>Officially began operations on April 17th, 1973, delivering 186 packages to 25 cities. </li></ul><ul><li>Rapid growth in the industry began in 1977 following air cargo deregulation. </li></ul><ul><li>In 1984, the company expanded to global coverage with services in Europe and Asia. </li></ul><ul><li>UPS </li></ul><ul><li>(United Parcel Service ) </li></ul><ul><li>Founded in 1907 in Seattle, Washington by Jim Casey. </li></ul><ul><li>Headquartered in Atlantic, Georgia. </li></ul><ul><li>UPS’s early fleet of delivery included a Model T and a few motor cycles. </li></ul><ul><li>Has a fleet of 15,000+ trucks & over 500 planes, and serves every company in Fortune Magazine’s list of the 1,000 largest companies in US. </li></ul><ul><li>Service to and from more than 200 countries & territories. </li></ul><ul><li>423,300 employees worldwide (9 th largest global employer) </li></ul><ul><li>USPS </li></ul><ul><li>( United States Postal Service ) </li></ul><ul><li>Founded in 1775 by Ben Franklin, the first post master general. </li></ul><ul><li>Tenacious delivery despite bad weather. </li></ul><ul><li>Responsible for 46% of the world’s card and letter deliveries. </li></ul><ul><li>Preferred choice for less important packages. </li></ul>HISTORY
    4. 4. Past Scenario <ul><li>UPS </li></ul><ul><li>Adept ,reliable &economical ground transportation system </li></ul><ul><li>Slow </li></ul><ul><li>Certain amount of tracking done </li></ul><ul><li>Had a tightly defined business. </li></ul><ul><li>FedEx </li></ul><ul><li>Invested in extensive fleet of planes </li></ul><ul><li>Deliver overnight </li></ul><ul><li>Charged a premium for its speedy service & sophisticated tracking system </li></ul><ul><li>Big and small businesses willing paid for this. </li></ul><ul><li>USPS </li></ul><ul><li>Famous for their tenacious delivery of mail despite rain, snow or even bad weather. </li></ul><ul><li>Today USPS is responsible for more than 46% of the world’s card and letter deliveries. </li></ul><ul><li>It had no tracking system hence more favourable for residential customers . </li></ul>
    5. 5. UPS Logistics <ul><li>Region headquarters in Singapore, 40 countries and territories served in Asia, 6,500 employees in region </li></ul><ul><li>Region headquarters in Singapore, 40 countries and territories served in Asia, 6,500 employees in region </li></ul><ul><li>Generated incomes around 50 billion dollars </li></ul><ul><li>employed 4,25,000 people of which 3,58,000 were in USA </li></ul><ul><li>service area covers 200 nations </li></ul><ul><li>4.0 billion parcels per year & 15.8 million per day of which 2 million are carried by air transport </li></ul><ul><li>extensive infrastructure : 2400 distribution centres </li></ul><ul><li>93000 vehicles </li></ul><ul><li>238 airplanes going to 391 airports in USA & 219 abroad </li></ul><ul><li>worldwide distribution facilities combined with global transportation services </li></ul><ul><li>Effective supply chain management requires precise management of the three flows of commerce: Goods, Funds and Information. </li></ul><ul><li>time definite delivery </li></ul><ul><li>emergence of e-commerce </li></ul><ul><li>UPS Access Points: 23 UPS Customer Centers, 136 Mail Boxes, Two The UPS Store, 2,147 Affiliates </li></ul>
    6. 6. DISTRIBUTION SYSTEM OF FEDEX <ul><li>FedEx offers rapid, time-specific delivery to 211 countries. </li></ul><ul><li>establishment FedEx Express Distribution Centers(EDCs) in 11 countries across Asia. </li></ul><ul><li>Intra-Asia overnight delivery through the FedEx AsiaOne network, launched in September 1995. </li></ul><ul><li>logistics services are also linked to FedEx's other global networks through direct flights. </li></ul><ul><li>Internet shipping software, the FedEx interNetShip. </li></ul><ul><li>Streamlined distribution . </li></ul><ul><li>Establishment of kinko’s. </li></ul>
    7. 7. SWOT ANALYSIS OF FED EX <ul><li>Strengths </li></ul><ul><ul><li>Household name </li></ul></ul><ul><ul><li>Product quality </li></ul></ul><ul><ul><li>Global expansion </li></ul></ul><ul><ul><li>Abreast in technology </li></ul></ul><ul><ul><li>Air fleet </li></ul></ul><ul><li>Weaknesses </li></ul><ul><ul><li>Employee racial discrimination </li></ul></ul><ul><ul><li>Lack of ground transportation force </li></ul></ul><ul><ul><li>Costly technology innovations </li></ul></ul><ul><ul><li>Judgment for late deliveries </li></ul></ul><ul><ul><li>Increased debt </li></ul></ul><ul><li>Opportunities </li></ul><ul><ul><li>Global business growth </li></ul></ul><ul><ul><li>Online consumer services </li></ul></ul><ul><ul><li>Increase demand in logistics </li></ul></ul><ul><ul><li>Alliance with USPS </li></ul></ul><ul><li>Threats </li></ul><ul><ul><li>Foreign competition entry into home </li></ul></ul><ul><ul><li>Economic standing </li></ul></ul><ul><ul><li>Online competitive advantages of rivals </li></ul></ul><ul><ul><li>Gain in competition service costs </li></ul></ul>
    8. 8. SWOT Analysis - UPS <ul><li>Strengths: </li></ul><ul><li>E-Commerce Capabilities </li></ul><ul><li>Emphasized global network and stability creating an image “not American, but more worldwide.” </li></ul><ul><li>Sought to build relationships discreetly, on Chinese terms </li></ul><ul><li>Opportunities: </li></ul><ul><li>Like FedEx, UPS can build around its multinational customer base with ASIA operations </li></ul><ul><li>UPS can pass on cheap cargo to target the more document and small package market, since they do not need to fill an aircraft </li></ul><ul><li>Weaknesses: </li></ul><ul><li>Lacked own air services in China, making it less logistically versatile than FedEx </li></ul><ul><li>Unlike FedEx, UPS does not have as much </li></ul><ul><li>Trucks and drivers build further brand recognition unlike FedEx in China </li></ul><ul><li>Threats: </li></ul><ul><li>Like FedEx, shipping companies already well established in China pose as a threat </li></ul><ul><li>UPS contends it will add its own airplanes in ASIA when it becomes necessary, by that time FedEx may already be far ahead in this area </li></ul>
    9. 9. SWOT Analysis - USPS <ul><li>Strengths </li></ul><ul><ul><li>Wide Coverage </li></ul></ul><ul><ul><li>Huge resources </li></ul></ul><ul><li>Opportunities </li></ul><ul><ul><li>Venture with FedEx </li></ul></ul><ul><ul><li>Semi privatisation </li></ul></ul><ul><li>Weaknesses </li></ul><ul><ul><li>Inflexible </li></ul></ul><ul><ul><li>Assurance for only priority mail </li></ul></ul><ul><ul><li>Too much spending on employees </li></ul></ul><ul><ul><li>No internet connectivity </li></ul></ul><ul><ul><li>Lack of technology </li></ul></ul><ul><li>Threats </li></ul><ul><ul><li>No tracking system </li></ul></ul><ul><ul><li>Lacking in technological operation </li></ul></ul><ul><ul><li>Inflexibility </li></ul></ul><ul><ul><li>No differentiation </li></ul></ul><ul><ul><li>Negligence of time value of money </li></ul></ul>
    10. 10. OPERATIONS <ul><li>As a whole, all the three services focused in the following areas: </li></ul><ul><li>Globalization </li></ul><ul><li>Advancements in technology </li></ul><ul><li>Challenges for shipping suppliers as well as </li></ul><ul><li>their customers </li></ul>
    11. 11. FedEx Express Operations <ul><li>Fed Ex Express delivers packages to every address within the United States. </li></ul><ul><li>International Express is guaranteed to </li></ul><ul><li>more than 220 countries and territories. </li></ul><ul><li>In 1994, Federal Express officially became FedEx. </li></ul><ul><li>Fed Ex gained authority in 1995 to be the sole U.S. based, all carrier in China, with aviation rights to the worlds most </li></ul><ul><li>populated nation. </li></ul><ul><li>Fast delivery </li></ul><ul><li>Overnight deliveries </li></ul><ul><li>International overnight market </li></ul><ul><li>FedEx Five-Point Strategy </li></ul><ul><li>Improve Service Levels </li></ul><ul><li>Lower Unit Costs </li></ul><ul><li>Establish International Leadership </li></ul><ul><li>and Sustain Profitability </li></ul><ul><li>Get Closer to the Customer </li></ul><ul><li>Maintain the People-Service-Profit </li></ul><ul><li>Philosophy </li></ul>
    12. 12. OPERATIONS OF UPS <ul><li>Model that prescribes everything of the firm </li></ul><ul><li>Fast ground transportation </li></ul><ul><li>Negotiate at lower prices </li></ul><ul><li>Senders can receive real-time status report about their shipments </li></ul><ul><li>Encryption technology </li></ul>
    13. 13. <ul><li>OPERATIONS OF USPS </li></ul><ul><li>Expedited delivery service from US to other countries </li></ul><ul><li>Improve Express (next day) as well as Priority Mail (several day) services </li></ul><ul><li>Strategic Principles </li></ul><ul><li>Stimulus for Volume Growth </li></ul><ul><li>Ease of Use </li></ul><ul><li>Flexibility </li></ul><ul><li>Competitiveness </li></ul>
    14. 14. UPS vs FedEx <ul><li>Started to enter rival’s core competent area. </li></ul><ul><li>UPS entered air delivery system whereas FedEx started challenging UPS on road. </li></ul><ul><li>WTC attacks tested FedEx. </li></ul><ul><li>UPS invested on advancement of technology . </li></ul>UPS FedEx Revenue $31 billion $20 billion Profit $3 billion $700 million
    15. 15. Contd.. <ul><li>USPS’ business affected by both UPS and FedEx. </li></ul><ul><li>Extensive revenues spent on labor (76%) as compared to UPS (56%) and FedEx (42%). </li></ul><ul><li>Being a government monopoly hurt USPS </li></ul><ul><ul><li>Continuation of non profitable post office boxes. </li></ul></ul><ul><ul><li>Cannot freely raise or lower prices. </li></ul></ul>
    16. 16. UPS Market Leader <ul><li>Efficient Operating system </li></ul><ul><li>UPS has been more profitable over recent years </li></ul><ul><li>It is much larger in size if we look at assets </li></ul><ul><li>UPS has an AAA credit rating compared to FedEx with has a rating of BBB </li></ul>
    17. 17. Target market strategies <ul><li>Fed Ex- </li></ul><ul><ul><li>International market </li></ul></ul><ul><ul><li>Delivery of highly confidential and administrative letters </li></ul></ul><ul><ul><li>15mn packages for 6.1 mn customers per day </li></ul></ul><ul><li>UPS </li></ul><ul><ul><li>Daily delivery service </li></ul></ul><ul><ul><li>US domestic package </li></ul></ul><ul><ul><li>International package operations in around 200 countries </li></ul></ul><ul><li>USPS </li></ul><ul><ul><li>Letters and postcards </li></ul></ul><ul><ul><li>Hub and spoke model </li></ul></ul><ul><ul><li>To every nook and corner of the country </li></ul></ul>
    18. 18. Conclusion <ul><li>Fedex is best for International & over night delivery. </li></ul><ul><li>UPS is best for Ground transportation with in US. </li></ul><ul><li>USPS is best for Cards & less important packages. </li></ul>
    19. 19. <ul><li>THANK YOU </li></ul>

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