UPS Vs. FedEx an Analysis Term Paper

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FedEx's 44,000) and strategy of building route density, productivity, and cost efficiency. While UPS, admittedly lagged behind FedEx in keeping pace with environmental trends, it is interesting to note that the company is now closing the gap quickly through addressing the weaknesses in its competitor's business model. Today, it is UPS, which is in a stronger position. UPS achieved this turnaround by integrating its online and core business practices, developing an open system of online services, and offering customers price and service flexibility. This strategy has not only allowed UPS to gain the leadership position in the online business segment, it has also resulted in the company's air express delivery business growing at more than double FedEx's rate.

A prima facie comparison of FedEx and UPS may lead to the conclusion that it is UPS that is relatively better placed today.

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However, a closer analysis will reveal that FedEx can easily match UPS's current competitive advantages with more investments in Information Technology and an expanded ground transportation system. But there is one competitive advantage that UPS enjoys, which FedEx may not find that easy to match or leapfrog. And that is in the area of cost leadership where UPS is undoubtedly the industry leader!.....

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