Ups vs Fedex Analytical Report - 3748 Words

COMMUNICATION COMPARISON FedEx vs. UPS Background: The basis of the analytical report will be comparing Fed Ex and the United Postal Service (UPS). These two companies are the top in their industry. Each company trying to achieve the role of the industry leader they constantly battle head to head combining strategy and brute force. Fed Ex was incorporated in 1971, but did not officially begin operations until April of 1973. Fed Ex started out delivering to only 25 cities and did not start to expand until 1977. UPS was founded in 1907 starting out with a Model T Ford and a few motorcycles. UPS has since grown its fleet into 15,000+ trucks along with a large fleet of aircrafts and services over 200 countries and territories.†¦show more content†¦In 2009 FedEx launched a multimillion –dollar campaign aimed at its rival UPS, â€Å"Why is mega-corporation UPS trying to use its political clout to get a bailout from the U.S. Congress, leaving you to pay the tab†. Rival UPS calls FedEx the only company in the transportation industry with ‘ground’ employees covered by a railroad and airline law. Most of the forces are from moderate to low besides the threat of intense rivalry which signals that this is an attractive industry to be within. Business Level Strategy: From the beginning UPS and FedEx both had very different strategies in the delivery industry. UPS was focused on ground transportation, as more of a substitute for United States Postal Service. UPS has over 100,000 ground transportation vehicles compared to only 20,000 ground vehicles in service at FedEx. The focus of FedEx has always been to be an air delivery company that is trying to pursue a strategy of being able to deliver a parcel the next day. FedEx proves this focus with nearly 700 jets in service compared to only 300 at rival UPS. FedEx and UPS both say the market of overnight delivery as the direction to pursue. UPS was able to accept this and move forward allowing its ground department to absorb the expense, while FedEx suffered a great deal and we hit with higher cost do to them having to hire independent contractors. Over the years, these two companies have changed their overall positioning strategy in the domestic delivery industry. 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