The Battle of Value

The battle of value

This article provide us the information about two package-delivery companies FedEx and UPS. The purpose is to tell the readers whether to invest in FedEx or UPS. Nowadays, China open the air transportation market to both companies. Both of them want to enter the Chinese market and have different strategy and financial situation.

FedEx and UPS are package-delivery companies. They provide supply chain, transportation, logistics and related information services. FedEx has expanded the service in 25 U.S cities and international market. UPS build the base in the US. They also expanding in to Europe, Canada, Latin America, China. FedEx and UPS in the same industry, same market. They are competitors.

Define corporate Excellence

FedEx and UPS have different market strategy. They try to earn the strong financial position and provide high returns to share holders. Both of them cut the costs through economics of scale and use of information technology.

FedEx, which is regarded as an innovative, entrepreneurial, and operational leader has a strategy that focuses on providing high quality services to its customers. FedEx invents the“HUB” system and “ absolutely positively overnight” ad campaign. They expanding services, acquiring more trucks and air crafts. They focuses on producing superior financial returns for share owners by providing high value-added supply chain. “People-Service-Profit” is their core business philosophy that emphasizes employee participation. This make the labor force work for the goals of the company. FedEx use just in time (JIT) strategy that strives to improve the business return on investment by reducing in-process inventory and associated carrying cost. FedEx’s technological innovations, including the COSMOS interface, enables it to provide timely delivery service to its customers and large clients.

UPS has the strategy that is driven by target for efficiency and cost reduction. In the past, UPS is been...