Fed Ex Vs. Ups Essay
1-Determine how each corporate culture differs from the other. The two companies I have decided to discuss in this term paper is Federal Express (Fed Ex) and United Parcel Service (UPS). Both of these companies are logistic companies which specialize in delivering freight, cargo, and shipping services. Both of these companies cater to customers by making door to door deliveries locally and internationally. Both companies have both ground and air shipments but their prices do vary. UPS on the other hand allows their employees to form unions and this means employees of the latter have some advantage when it comes to salary increases, retirement benefits and other employee benefits that are enjoyed by other employees from other companies. Both FedEx and UPS have the same shipping options which are done through air and by land. However, when it comes to land transportation, UPS is leading due to the fact that the ground services offered by UPS are 5 times larger than that of FedEx. On the other hand, when it comes to shipment via air, FedEx is the leader. Statistics have shown that FedEx gets 25% more air shipments than UPS does.
When it comes to rates, both of these companies vary in prices by just a dollar or a few. Some of the services they offer have the same rates as well. But just recently, both these companies have adjusted their pricing scheme due to increasing fuel prices. FedEx has slowly gained in competition with UPS in terms of revenue. In a year, FedEx averages about $22 billion in sales while UPS averages $30 billion a year. Sometimes you just have to face the fact that a company’s success is best measured by its results of operations. When it comes to the selling rates of their shares in the stock market, UPS is still number one with their stocks valued at $82 billion, while FedEx trails by a large margin selling only $22 billion dollars in stocks.
2- Analyze three (3) ways that each unique culture has benefited by the other’s competition. Attaining a competitive advantage in package delivery business appears to be a challenging task. The main reason is that it is an easy-to- duplicate business both for the competitors and any new entrants. This is obvious in FedEx’s case: the company always has distinguished itself through technologically advanced services, expanding in many places and new products over other competitors, especially UPS (Boone & Kurtz, 2012). UPS was the main choice for low-priced ground delivery services however being a market follower in the air delivery sector could negatively affect its reputation and cause loss of market in the long term.
Taking the above into consideration I think the three unique ways each culture has benefited by the other competition is by the combination of high-service quality, convenience and low rates can give a company a sustainable competitive advantage. 3- Speculate how each would continue to thrive if its current corporate culture would need to change in the near future. Be sure to state what change(s) you are speculating on and what led you to identify that possibility. Changes that I speculate that could change the current corporate culture in the near future that would include for both Fed Ex and UPS would include new demands in their industry. The two companies may see an increase in business so they may have to make adjustments in its culture in order to accommodate more customers and employees(Boone & Kurtz,2012). The two companies also have to be aggressively inclusive in their hiring, and favor ability over experience.
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