ups vs fedex battle case study

1. Konok Kumar Mondal ID:1407016
Vs

2. Topics to be Covered
• Introduction: UPS & FedEx
• History
• Relative Comparison
• Ques-1: what resource does UPS have to support
its strategy?
• Ques-2: Assess FedEx internal resource?

3. UPS History
 Started in 1907 by 19 year-old Jim Casey then called
American Messenger Company.
 Became Unite Parcel Service of America in 1929 and began
shipping packages on commercial airliners.
 By 2003
• 88,000 Ground Trucks
• 583 Planes
• 360,000 Employees
• $2.9 Billion in profits on
$33.4 Billion

4. FedEx History
 Business model conceived by Fred Smith in an
undergraduate term paper.
 Invests $4 million of his own capital and raises and addition
$91 million.
 Launches in 1971
 By 2003
50,000 Delivery Trucks
625 Cargo Planes
217,000 Employees
Handles 2 billion packages
$22.5 Billion with 37% margins

5. Head-to-Head: UPS Vs FedEx
UPS Fedex
Founded 1907 1971
2000 Revenue $29.77 Billion $18.3 Billion
Net Income $2.93 Billion $688 Million
Employees 359,000 215,000
Daily Package Volume 13.2 Million 5 Million
Fleet 152,500 Trucks, 560
Planes
43,500 Trucks, 662 Planes

6. Ques-1: what resource does UPS have to
support its strategy?
• Investigate core business of worldwide distribution and logistics
• Rely on DIADs
• Attracting talented people
• Studying customer behavior
• Anticipating customer needs
• Practicing innovation for growth
• Assure Quality service
• More focused integration of goods, funds and information

7. Ques-2: Assess FedEx internal resource ?
▫ Product quality
▫ Global expansion
▫ Advanced Technology oriented
▫ Air fleet
▫ Global business growth
▫ Online consumer services
▫ Increase demand in logistics