1. The express mail industry evolved in the 1970s with the creation of overnight delivery by Federal Express. Companies like UPS and Airborne Express soon followed suit. A key development was Federal Express's creation of the hub-and-spoke system, which allowed for nationwide overnight delivery.
2. Airborne Express positioned itself as the low-cost provider in the industry, targeting large business customers. It aimed to offer the lowest prices compared to FedEx and UPS. Airborne also reduced costs by owning its own airports.
3. However, Airborne's competitive advantages of low prices and proprietary technology were not sustainable long-term as competitors matched its offerings. It struggled with low profit margins, and was eventually
Case study analysis of Airborne case. Contains detailed SWOT analysis, porter's five forces analysis as well as answers to questions. A group project done in strategic marketing course.
Innovation at Progressive (A) - Harvard Business School
Answering the following questions:
1. How does Progressive’s performance as an auto insurer compare to that of typical insurance companies? How does its performance changed over time? What explains the difference in performance?
2. Customers of auto insurers are very price sensitive. How problematic is it to Progressive that customers almost always select the insurer that offers the best price?
3. Assess the viability of the Autograph system. What level of consumer acceptance will it take to make Autograph successful? What are the barriers to consumer acceptance? Should Autograph be expanded nationwide?
Made and presented for the course Service Operations Management at the Viadrina University, winter term 2012/2013
Case study analysis of Airborne case. Contains detailed SWOT analysis, porter's five forces analysis as well as answers to questions. A group project done in strategic marketing course.
Innovation at Progressive (A) - Harvard Business School
Answering the following questions:
1. How does Progressive’s performance as an auto insurer compare to that of typical insurance companies? How does its performance changed over time? What explains the difference in performance?
2. Customers of auto insurers are very price sensitive. How problematic is it to Progressive that customers almost always select the insurer that offers the best price?
3. Assess the viability of the Autograph system. What level of consumer acceptance will it take to make Autograph successful? What are the barriers to consumer acceptance? Should Autograph be expanded nationwide?
Made and presented for the course Service Operations Management at the Viadrina University, winter term 2012/2013
Reliance Baking Soda is Stewart Corporation's oldest and most established product. The new Domestic Brand Director needs to create a 2008 marketing budget that delivers a profit increase of 10% over 2007 levels. She must first evaluate the effectiveness of past consumer and trade promotions and determine if a price increase will have net bottom line benefits. Then she must decide on the optimal allocation of her marketing budget, taking into account the brand's apparent "cash cow" role in the Household Division of Stewart Corporation. Students are expected to complete a quantitative assignment: create and defend a budget.
Challenges
Inaccurate forecasts of retailer demand has become a major issue at Obermeyer. The two major factors that made this task more difficult was the increase in product variety and intense competition in market. Second challenge the company had faced was to allocate production between Hong Kong and China. Although Obermeyer had 1/3 of Parka production in China for 1992, this year the organization insisted on increasing the sales to half. There was difference in quality and labor rate at China and Hong Kong which made allocation decision more difficult.
Another challenge the company faced was the larger lead time. The company had supplies of raw materials from various countries which resulted in delayed production time. Organization challenges along with competition from competitor companies were major challenges the company had faced.
Analysis
From the sales predictions that the six managers forecasted, a coefficient of variation (COV) was determined, which indicated the level of spread of the forecasted data. The COV values were broadly divided into two levels, the low risk group and the high risk group. Every value below 0.2 were considered to be among the lower risk items and all the items above COV value of 0.2 were considered to be of higher risks. Once the risk levels of each item were determined, the quantities of items to be produced in first and second production cycles could be calculated with least risk. 70% of the entire sales forecast for the lower risk items were ordered to be produced. Only 30% of higher risk items were ordered to be produced in the first production cycle. The quantities which amounted to 1200 were manufactured in China and that which were close to 600, were manufactured in Hong Kong in the first production cycle.
Once the 80% of the orders were received from the retailers from the Vegas show, a clear picture of the demand forecast could be obtained, according to which the rest of the items could be manufactured either in China or Hong Kong. Referring to exhibit 1, the four products to be produced in China in the first production cycle are: Assault, Seduced, Entice and Electra. These four products have COV less than 0.2. However Gail, Daphne, ISIS, Anita, Teri, Stephanie are produced in Hong Kong for the first production cycle as they have a high level of risk associated with it.
Conclusion
Short term operational changes
o Decrease lead time by obtaining raw materials from geographically closer locations to ensure timely delivery
Long term operational changes
o Cross scaling Chinese labors which would help the company produce quality and reliable goods at a cheaper price
It's a B2B and a B2C case where revenue comes from advertising and also from people. Case analysis of fashion channel with the interpretation of Demographic and attitudinal cluster analysis, problems pertaining to TFC, studying the solutions to the problems and answered to why "Dual targeting" ?
Manzana Insurance is the second largest insurance company founded in California in 1902. • They operated through a network of autonomous branch offices in California, Oregon and Washington. Each branch is treated as a separate profit and loss centre. • Manzana does not directly interact with public but instead has its 2000 agents who represents Manzana. • Fruitvale was one of the Manzana’s smaller branches, with 3 underwriting teams and 76 agents. Our case concern is the falling performance and hence the profitability on Property Insurance for this branch.
Reliance Baking Soda is Stewart Corporation's oldest and most established product. The new Domestic Brand Director needs to create a 2008 marketing budget that delivers a profit increase of 10% over 2007 levels. She must first evaluate the effectiveness of past consumer and trade promotions and determine if a price increase will have net bottom line benefits. Then she must decide on the optimal allocation of her marketing budget, taking into account the brand's apparent "cash cow" role in the Household Division of Stewart Corporation. Students are expected to complete a quantitative assignment: create and defend a budget.
Challenges
Inaccurate forecasts of retailer demand has become a major issue at Obermeyer. The two major factors that made this task more difficult was the increase in product variety and intense competition in market. Second challenge the company had faced was to allocate production between Hong Kong and China. Although Obermeyer had 1/3 of Parka production in China for 1992, this year the organization insisted on increasing the sales to half. There was difference in quality and labor rate at China and Hong Kong which made allocation decision more difficult.
Another challenge the company faced was the larger lead time. The company had supplies of raw materials from various countries which resulted in delayed production time. Organization challenges along with competition from competitor companies were major challenges the company had faced.
Analysis
From the sales predictions that the six managers forecasted, a coefficient of variation (COV) was determined, which indicated the level of spread of the forecasted data. The COV values were broadly divided into two levels, the low risk group and the high risk group. Every value below 0.2 were considered to be among the lower risk items and all the items above COV value of 0.2 were considered to be of higher risks. Once the risk levels of each item were determined, the quantities of items to be produced in first and second production cycles could be calculated with least risk. 70% of the entire sales forecast for the lower risk items were ordered to be produced. Only 30% of higher risk items were ordered to be produced in the first production cycle. The quantities which amounted to 1200 were manufactured in China and that which were close to 600, were manufactured in Hong Kong in the first production cycle.
Once the 80% of the orders were received from the retailers from the Vegas show, a clear picture of the demand forecast could be obtained, according to which the rest of the items could be manufactured either in China or Hong Kong. Referring to exhibit 1, the four products to be produced in China in the first production cycle are: Assault, Seduced, Entice and Electra. These four products have COV less than 0.2. However Gail, Daphne, ISIS, Anita, Teri, Stephanie are produced in Hong Kong for the first production cycle as they have a high level of risk associated with it.
Conclusion
Short term operational changes
o Decrease lead time by obtaining raw materials from geographically closer locations to ensure timely delivery
Long term operational changes
o Cross scaling Chinese labors which would help the company produce quality and reliable goods at a cheaper price
It's a B2B and a B2C case where revenue comes from advertising and also from people. Case analysis of fashion channel with the interpretation of Demographic and attitudinal cluster analysis, problems pertaining to TFC, studying the solutions to the problems and answered to why "Dual targeting" ?
Manzana Insurance is the second largest insurance company founded in California in 1902. • They operated through a network of autonomous branch offices in California, Oregon and Washington. Each branch is treated as a separate profit and loss centre. • Manzana does not directly interact with public but instead has its 2000 agents who represents Manzana. • Fruitvale was one of the Manzana’s smaller branches, with 3 underwriting teams and 76 agents. Our case concern is the falling performance and hence the profitability on Property Insurance for this branch.
Express delivery typically involves a time specific constraint, traditionally on a 24-hour, 48-hour or 72-hour basis or particular window of time that the customer chooses.
#Small Package Industry Before FedEx
1.In 1973, 1.5 ton of freight shipped in US by surface transport and 2% of total shipped by aircraft.
2.High cost of Airfreight down the clients demand.
3.Cargo freight carried by passenger planes which increased operational coast which is uneconomical.
## FedEx
--Founded in 1971 by Frederick W. Smith and started their operation in 1973.
--Smith Finds Major Difference Between Package and Passengers.
--Smith’s aim was to build a system that could achieve next-day delivery of small-package airfreight.
Established a Hub and Spoke route System.
--After 1973 FedEx quickly build up volume.
--By 1976 it had an average daily volume of
19,000 packages, a fleet of 32 aircraft, 500
Delivery vans and 2,000 employees.
--It had initiated service in 75 cities.
Profit $3.7 million on revenue of $75
Million .
##Industry Evaluation,1980-1986
#New Products and Industry Growth.
--Introduce Letter Service which Guaranteed overnight Delivery Service.
--Direct competition with USPS Priority mail.
---Within 3 month their growth is 17000 letters per day.
--1980s yearly growth is 30%.
--Increasing Price Competition.
--Entry of UPS in 1982 in overnight delivery market.
--UPS purchase some freighters(Boeing 727-100s,DC-8) from flying tigers.
--Introduce Next day air service in September 1982.
--Cut the price at roughly half the price Federal Express was charging.
--Federal Express announce overnight delivery at 10.30am.
--In 1983 most of the major carriers include FedEx cut their price following UPS.
--Three new services introduced by Purolator, Emery, and Gelco also offer lower price.
--Between 1983 and 1984 Federal Express’s average revenue per package fall nearly 14% ,Emery 15%.
The Soaring Success of Air Freight Industry During Pandemic & Ahead rtscorp1
The Air Freight sector has seen an impressive growth in the last two years. It was surprising to register that the sector generated revenue for airlines even during the pandemic. The revenue soared to an unexpected level. Technology certainly played a pivotal role in the process.
The air cargo market and air-cargo revenue management have never looked this better. The sector is expected to grow 7.9% in 2022. The demand is going to be more than ever, according to the International Air Transport Association(IATA). The growth of the air freight industry was not always this impressive. It has seen its fair share of phases.
Running head FedEx HELICOPTERS PARCEL DELIVERYFedEx HELICOPTERS.docxcowinhelen
Running head: FedEx HELICOPTERS PARCEL DELIVERY
FedEx HELICOPTERS PARCEL DELIVERY 10
FedEx helicopters parcel delivery
Student Name
Course/Number
Due Date
Faculty Name
Title of Paper
FedEx helicopters parcel delivery
Overview of Organization
Federal Express Inc is usually a global organization known to offer package delivery service. From the begging, the organization has proved great aptitude for its marketing strategies, leading to massive growth has one of the largest organizations in the United States. This factor has usually been facilitated by the organization mission that is to grow the global business through helping logistics needs of their customers via offering excellent and value in all of their business operations (Rushton, A., & Walker, S. 2007). Federal express Inc is an organization with the ability to delivery logistics services in more than 220 countries globally, covering all areas in North America and Europe.
Currently, the organization is usually offering a variety of services that have a similar goal in packages mind move from the source to the receiver. Ground shipping is normally the most means of transport used by the organization due to its affordability whereby they use rail and trucks to send their packages. For the individuals who want their packages to be delivered quickly, the organization uses air freight which is much more expensive unlike other means of transport. The organization ensures that they offer appropriate services based on the services quality, cost, reliability, and speed, in various services to satisfy the customer’s needs. In order for the organization to remain competitive in the market, a new service is normally being proposed in order to create a competitive gap against its competitors in order to achieve its goals and remain the leading logistics organization globally and in future.
Description of Product/Service
It is essential to make sure that the new service developed is of worth to the stakeholders and clients while matching the global standards for competition factor. The new service proposed will usually involve and use a remote functioned flying helicopter to distribute parcels to the homes of customers directly. This service is being facilitated by the advancement in helicopter aviation system, representing the next generation of parcels carriage technology. The new service will be utilized to deliver services to urban areas that are densely populated, to increase the packages delivery speed.
An example of the densely urban area that the service will be offered is in San Francisco especially to customers who purchase their products from Oakland. FedEx new helicopter delivery service will be able to transport these products to the doorstep of clients in a matter of minutes or hours, unlike truck delivery that takes several days. The organization will be the first to introduce this helicopter delivery service on val ...
This presentation is about FEDEX courier services for MBA student 1st year for Organisational Behavior subject. This is about organisational change in FEDEX company and its competitors
XPO Logistics IncProject Air Transport Analysis10252022.docxtroutmanboris
XPO Logistics Inc
Project: Air Transport Analysis
10/25/2022
Assignment Instruction for Project 8
Your executive board has asked you to prepare a presentation detailing the opportunities for air transport (local and global) XPO . As your starting point analyze current usage of air transport with the reasons for its usage in comparison to alternative modes of transport across the dimensions of cost and service. Having profiled current air transport usage, develop your presentation to cover future opportunities for air transport in XPO, again using the logic of costs and service. You may find it useful to identify current and future products that fit a profile of high value to mass / cubic volume in terms of their fit with air transport.
Your presentation should be about 5 slides in length
Current Usage of Air Transport
XPO provide air transport services for urgent / express shipment
About 617 million shipments were shipped by XPO in the United States from North America, from Europe and from Latin America
XPO air transport market is expected to expand by 2037
XPO target for customer who are looking for reliability, affordability, speed, and invention of new technologies has led to the increase in its usage
3
Future Opportunities For Air Transport In XPO Logistics Inc
a. Reduced Costs
This is by ordering goods in bulk to save many trips therefore saving fuel and other processes involved.
Outsourcing transportation management is also essential.
Other modes of transport are so expensive in terms of processes involved in supply chain compared to air transport (Seymour et al., 2020).
By monitoring supply chain performance, XPO Logistics Inc. will be able to determine breakage in line of operation and correct them properly (Vinod, 2021).
Customers can save more money overall when they are encouraged to do larger orders. This can benefit both XPO logistics and the customers. For instance, transporting six to eight pallets at once can typically be less expensive than shipping two to four pallets every other day. It makes reasonable that needing to use more journeys will result in the carriers using more labor, petrol, and vehicles. As one can see, prices will remain this way unless one component can be changed to significantly lower the cost of air freight as a whole. Air transport can help XPO logistics to reduce cost because the costs for fuel and other logistics expenses needed in this process are low (Seymour et al., 2020). A company can transfer the load on itself when they outsource the logistics and transportation of freight. These businesses can also buy operational goods in bulk, like fuel and parts/accessories (Islam, 2019). At the end of the day, XPO Logistics will still save more money on air freight shipping even if it has its own carrier line. Commercial sea travel, including trips on freighters and cruise ships, is significantly more expensive than flying considering tax and duties. Companies are able to det.
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Fleet management these days is next to impossible without connected vehicle solutions. Why? Well, fleet trackers and accompanying connected vehicle management solutions tend to offer quite a few hard-to-ignore benefits to fleet managers and businesses alike. Let’s check them out!
Learn why monitoring your Mercedes' Exhaust Back Pressure (EBP) sensor is crucial. Understand its role in engine performance and emission reduction. Discover five warning signs of EBP sensor failure, from loss of power to increased emissions. Take action promptly to avoid costly repairs and maintain your Mercedes' reliability and efficiency.
What Are The Immediate Steps To Take When The VW Temperature Light Starts Fla...Import Motorworks
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• Target Areas: Polokwane, Lephalale, Mokopane, Phalaborwa, and Bela-Bela.
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Women and Youth are encouraged to apply even if you don't fall in those sectors.
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Airborne express case q&a
1. Airborne Express Case Q&A
Info other than Case
Airborne Express is acquired by DHL in 2003
DHL retained ownership of Airborne's ground operations and spun off its air operations as
ABX Air, Inc.
Currently DHL is the number 1 delivery service company.(2nd is Fed Ex and 3rd is Blue Dart)
Airborne Express Case Q&A
1. Consider the structure of the Express Mail industry in the US and how it has evolved. Why has
it evolved this way?
2nd heading is about Express Mail Industry in US (in case study given)
In 1996 shipments was $16-17b Company.
Quick on-time physical delivery was coming
Use of technology was changing the game like routing
Tracking of shipment was a new service offered
Customer service was improving
2. What is Airborne’s strategy? How has it positioned itself in the industry? How is it different
from FedEx or UPS?
Targeted business customer that regularly shipped large volumes of urgent items like
Xerox (Position)
Never advertised much publically, instead focused on larger shipping companies
Sales force was given good freedom to negotiate volume discounts.
It positioned themselves as low price service.
They owned airports which served as its major hub to reduce the operational cost
Selective in technology selection. Wanted others to use it first.
3. How does Airborne deliver value to its customers?
High-quality, reliable service
Company offers a variety of flexible delivery options and products
Prices are generally lower than those of competitors
Proprietary communications technology increases delivery speed and reliability
4. How has Airborne done financially with its chosen strategy?
Revenue per shipment went down – from $19.37 to $8.25 (From 1985 to 1996)
Rounds per shipments went down
Revenue grew from $542m to $2484 (operating margin was low till 1996)
2. Return on equity was down
More details on financial is given in summary below
5. What exactly is Airborne’s competitive advantage? Can we quantify the advantage?
o It’s advantage was its fleet and airport
o Proprietary communications technology increases delivery speed and reliability
o Airborne was known for high-quality, reliable service
o Company offered a variety of flexible delivery options and products
o Prices were generally lower than those of competitors
6. Is Airborne’s competitive advantage sustainable?
o Use of airport and other assets was not efficient
o With better technologies available in market it’s proprietary communication tech
was not going to give any sustainable competitive advantage.
o Competitors were matching quality and reliable services so it was not a
sustainable competitive advantage.
7. What strategic options does Airborne have? Which one do you recommend?
Merger with DHL promises to increase scope of international marketing and operations
Growth of e-commerce and shorter product development cycles may generate increased
need for express delivery services
Value-added services (supply chain management, inventory control, etc.) may become
most profitable segment
Airborne may be able to target niche markets not currently served by UPS and FedEx
8. Should Airborne Express switch to distance-based pricing to match its competitors?
Case Analysis: Airborne Express (a), Harvard Business School.
Case Analysis: Airborne Express (A), Harvard Business School.
Not so long ago, there was no such thing as overnight express service and freight delivery. Then
Federal Express, United Postal Service (UPS) and Airborne Express, among six second-tier
companies, came upon the scene. In 1973, Federal Express invented the concept of overnight
express package, soon followed by the other two largest express companies–UPS and Airborne,
during the 1980s. The fast growth of the Express Mail industry was mainly due to the success of
the express delivery service. Thanks to Frederick Smith, a Yale undergraduate back in 1965, who
had envisioned a whole different system on his economics term paper. Smith proposed an airline
dedicated exclusively to express delivery of mail. Regardless of a “C” grade received on his
3. paper, Smith incorporated Federal Express in 1971and officially began operations on April 17,
1973.
Some of the features in the evolution of the Express Mail Industry includes but is not limited to
the creation of the hub system and air express service. Created by Federal Express, the hub
system is the symbol of the modern air courier industry. It made possible the large-scale,
overnight deliveries and it has remained the standard operating method in use to this day. This
system allows air courier industry to ship all freight to the company’s central hub, where it is
sorted, and rerouted to its final destination. Also under consideration, the air express service
played an important role in the evolution of the Express Mail Industry. FedEx is the pioneer in
assembling a fleet of executive jets and modifying them to carry cargo. Integrators such as
Airborne have dominated this particular service by owning the airport that served as its major
hub, and as a result, it did not have pay lending fee.
In analyzing the Express Mail Industry structure using Porter’s Five Forces Model we can see
the efficiency of this model and how it shaped this industry. The five forces: Intern Rivalry,
Buyers, Suppliers, New Entrants and Substitutes are factors within Porter’s model that intensify
or weaken rivalry among direct competitors in an industry. For instance, Intern Rivalry played a
fierce competition among competing service providers in the Express Mail Industry. Major
carriers competed by constantly cutting prices, in order to secure their market share, and by
offering customer support, matching each other’s innovations. Airborne was known for its low
prices. It offered the lowest price of overnight, morning, afternoon and second-day delivery
compared to FedEx and UPS, as presented on exhibit 8: List Prices of Express Mail Carriers, on
page 21.
Another significant force, Buyer Bargaining Power, also played a fierce competition to provide
delivery services for large corporations and companies. For example, Airborne Express targeted
its business customer, such as Xerox, that regularly shipped a large volume of urgent items and
needed early arrival of its package. By customizing a service for each Xerox package, with a
barcode scanner that emits a special beep when scanned, Airborne could make Xerox delivery as
early as 8 AM, thus developing a special relationship and winning Xerox account in 1988.
Equally important, Supplier Bargaining Power, in this case service suppliers, particularly airport,
aircraft and truck and maintenance, and airport services have strong bargaining power. Taking
the example of Airborne, the company reduced some of the bargaining power of maintenance
providers by owning the airport and not having to pay landing fees.
Additionally, New Entrants, such as UPS and Airborne, were potential entrants to the market at a
significant scale. In order to compete with the largest Express Mail Industries, Airborne had to
overcome its publicity disadvantage compared to FedEx and UPS. Moreover, existing rival’s
brand name, experience, relations and technology gave the new entrant Airborne, a hard time
establishing such coincidence. Last, but certainly not least, Substitutes, did not seem to produce a
potential threat to the transportation in the Express Mail Industry. The combination of Roadway
Package System (RPS) on the ground made possible for Airborne to adopt the one-stop shopping
technique. The three rivals ensured their market share with this technique and continued to make
money by transporting packages from one place to another. However, up to this day and every
time more people are making use of internet as a substitute for overnight document delivery. The
4. advantages of online forms, emails, digitalization of documents and digital signatures are
welcomed by many organizations and firms, which can save money and time.
Likewise, UPS and Airborne survived the competition in an industry with significant economies
of scale. Even though Airborne is smaller than the two 900-pound gorillas, and that is FedEx and
UPS, the evolution of its industry allowed the third largest player to prosper. Despite their
similarities, each rival in the Express Mail Industry developed its own and distinct business
strategies. For instance, FedEx customers are widely aware that the industry is the first company
that introduced an electronic shipping solution to the market. The firm prided itself on its cutting-edge
information and logistics technology. On the contrary, Airborne did not introduce new
technology and in fact, used their competitors as guinea pigs. Nevertheless, UPS had made a
determined effort to match Federal Express’s information technology expertise, investing $3
billion in advanced technology and closing most of the technology gap by 1997.
Among the strategies used by the three largest Express Mail Industries, Airborne had generic
competitive strategy advantage as a low cost provider. The firm offered lower overall costs than
rivals on express mail that attracted particular large business customers. By using this strategy,
Airborne placed itself in the best position to win the business of price-sensitive service buyers.
Nonetheless, FedEx won the competitive battle of customer’s loyalty to its brand by making use
of core strategies and bonding customers to the differentiating features of the industry’s product
offering. The strategy used by UPS, focused more on large packages on contrary of the other
two. FedEx and UPS had a fierce competition in the early 1900s, indicated by industries
observers as a bloody “parcel war.” Each company not only matched the other’s price, but also
the other’s innovation.
Some key areas and elements used in the Express Mail industry include but are not limited to
price, where for the first time, affordable prices made possible for business to make a large use
of overnight shipping packages. Also includes product, where a variety of select packages
fulfilled most business needs and lastly includes services, where overnight express delivery
became largely used, virtually by every business, and had become the standard means of
delivering documents.
The Compound Annual Growth Rate of revenues for the period of 1986 to 1996 for FedEx, UPS
and Airborne are successively 14.85%, 10.00% and 16.44%. After analyzing the CAGR of
revenues for each of the three firms, Airborne had a higher CAGR at the end of the investment
period, followed by FedEx and lastly UPS. On this basis, one would conclude that Airborne is
doing well and in fact might be gaining market share. The Compound Annual Growth Rate of
Net Income for the three firms at the same period of time is FedEx: 8.84%, UPS: 5.53% and
Airborne: 7.58%. In this case FedEx had a higher CAGR of Net Income followed by Airborne
and lastly UPS.
The Return on Equity for the three firms (FedEx, UPS and Airborne) for the same period of time
is successively 94.30%, 237.90% and 98.20%. In this case, UPS had a higher ROE rate followed
by Airborne and lastly FedEx. This means that UPS is making a better use of the money
shareholders invested in it. The last financial analysis and that is Profit Margins, for the three
firms only for the year 1996 is FedEx: 3.00%, UPS: 5.12% and Airborne: 1.09%. Once more
5. UPS had a higher rate and at this time, a higher ratio of profitability. Comparing the three firms
in the same industry, UPS had a higher Profit Margin in 1996 which indicates a more profitable
company that has better control over its costs compared its competitors.
As noted, UPS’S profitability rate is without a doubt higher than its rivals and revealed how
much profit the company generated with the money shareholders have invested. For the most
part, a company that has a higher ROE is more likely to be one that is capable of generating cash
internally. Airborne had a second higher ROE but its Profit Margin had a lowest rate among the
three. This shows that Airborne is the one who is keeping less money per dollar of sales in its
earnings. The recommendation for Airborne is to pay a closer look to its cost impeding cost to
increase at a greater rate than sales.
On the whole, the Express Mail Industry will certainly take a new turn in the near future. The
world had become a very small place for this industry and its better defined by its time zones
rather than its distance. It is possible that some very large merges will surge and divide Express
Mail Industry market on larger shares and most likely FedEx and UPS will keep it strong.