A financial analysis of FedEx and comparison with its main competitor, UPS.
Written in 2003; 4,844 words; 3 sources; MLA; $ 123.95
Paper Summary:
This paper examines how FedEx is one of the leaders in the small-package transportation industry and how the global transportation industry, in all sectors, is highly competitive, especially in the slowing economy that the United States and other countries are experiencing. It looks at how, for the dominant small-package carriers such as FedEx and UPS, this means less freight to move, customers demanding more discounts, and competitive pressure never seen before. It examines how the differences between FedEx and its primary competitor, UPS, are stark, and how how customers and industry analysts alike equate FedEx and UPS as identical provider,s whereas they actually differ dramatically in culture, operations, and most importantly, financially.
Outline
Overview
FedEx ? Sometimes "David", Sometimes "Goliath"
FedEx's Future
Impact
Cost Considerations - The Need to be Nimble
Implementation
Getting It Done - Making Good Decisions
New Internal Data Engines
Relating to Customers ? Old and New
Preliminary Budget Considerations
Budget Footnotes
Conclusion
From the Paper:
"The differences in employee training and attention to operational details between FedEx and UPS are dramatic. For example, UPS knows how many times their driver shifts gears. FedEx is significantly less detailed in the operational vigilance. Therefore, the importance of making an investment in the research and training of their employees appears simple to stay competitive, but represents a task of enormous proportions. For employees, such dramatic improvements represent a huge cultural shift and for customers, it represents a more efficient playing field. Examining how UPS's efficiency model works may reveal a successful foundation to build upon."
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