ups vs. fed ex swot analysis
...website. They can link its system to outside websites. FedEx on the other hand forced customers to use their own software to track and ship packages. In 1999 UPS integrated their overnight and ground services, which allowed them to reduce their cost, thus creating a lower price for the consumers. UPS Weaknesses UPS’s main weakness was their labor relations in the fact that they were more unionized where FedEx did not have a union. Due to employee strikes a lot of their consumers switched to FedEx. UPS was also behind FedEx in overnight express delivery. They were also number two to the United States Postal Service in the deferred segment. Another weakness is that UPS did not form alliances with other parcel service companies. For example, FedEx and USPS formed an alliance to protect against foreign parcel companies entering the U.S. market. UPS Opportunities In 2000, UPS’s overnight global delivery business was growing at more than double FedEx’s rate. UPS focused on expanding their market globally. They built strong relationships with online retailers such Nike.com, General Motors Corporation, GNB Technologies and they took over some of FedEx’s corporate clients. UPS served their customers through websites. This allowed customers to become more dependent on their services and brand name. UPS Threats Even though UPS was a strong competitor in the parcel service industry, they still have viable competition that still holds a large percentage of the market share. FedEx is UPS’s largest competitor. FedEx offers more services to their consumers. Another threat is the increase in globalization and the desire for foreign parcel service companies’ to enter the U.S. market. FedEx Strengths FedEx was created on an entirely new concept in package delivery. This concept was an overnight express air delivery service. FedEx has experienced consistent growth in terms of net income almost every year of operation. One of the biggest strengths is their business concept. The company also provides e-commerce and supply chain management services to clients worldwide. FedEx offers a wide variety of delivery options including worldwide express delivery, ground small parcel delivery, and freight delivery. FedEx is a household name and exceeds in express package delivery. FedEx’s success is also because of the “People-Service-Profit,” which means that they put their employees first. They believe that employees will be motivated to provide the best customer service possible and then profitability will follow. FedEx created the hub-and-spoke route system; they supplied logistical services, and the introduction of advanced technology. They also helped companies in the global market and introduced them to end-to-end manufacturing product services. These services were warehousing, inventory accounting, shipping, billing and invoice reporting. FedEx offered the only reliable tracking system, which could track package’s very quickly. They supplied logistical services that required the development of information technology. FedEx Weaknesses FedEx was slow to adapt to new business innovations. For example, they did not integrate their ground and overnight services, therefore failing to cut cost for themselves and consumers. They also lacked in technological innovations. FedEx’s tracking system had to be used with their software to track packages, whereas UPS created software that was compatible with any software that could be linked and operated by outside websites. ...