Question: CASE-3: After FedEx watched UPS successfully invade its airborne delivery system, it invested heavily in ground delivery through a series of acquisitions to challenge UPS
CASE-3: After FedEx watched UPS successfully invade its airborne delivery system, it invested heavily in ground delivery through a series of acquisitions to challenge UPS on its home turf as it has highest sales till now.The two firms are now in a heated battle to gain the sales from the marketplace. Both are moving into the fast-growing, multibillion- dollar Chinese domestic delivery market, where FedEx has a head start and a bigger operation. Overseas markets are attractive for both firms, given that a little more than half of FedEx revenue and almost two-thirds of UPS revenue comes from the domestic U.S. market. Combined, the two companies account for an impressive 10 percent of U.S. gross domestic product (GDP). To expand their reach and the range of services they can provide, both are making strategic acquisitions of delivery companies all over the world, none bigger than UPSs attempted purchase of TNT, blocked at least initially by European regulators. Back in their home U.S. markets, both firms are trying to lock in customers with customized door-to-door deliveries. Fueled by the rapid rise of online shopping, residential deliveries are growing fast, and FedEx has the advantage of being able to make Saturday deliveries. Advertising UPS Loves Logistics, UPS has made a strong play with businesses, positioning itself as the logistics expert capable of providing a broader range of supply-chain services than just deliveries. 3. Define the market position of FedEx and UPS with logic first and then explain the type of competitive strategies taken by FedEx and UPS to grab customers.
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