Christopher Sainvil

MGMT 0325-004
Professor Wilson
November 24, 2019

Chapter Five Mini-Case

1. FedEx and UPS have many similar resource and compete across many of the same
markets. How are they different? Stated differently, how do they differentiate
themselves?

Both firms tend to focus on different segments with the intention of creating superior
stakeholder value.

 FedEx “intends to leverage and extend the FedEx brand and to provide customers with
seamless access to its entire portfolio of integrated transportation services”
 UPS “seeks to position itself as the primary coordinator of the flow of goods,
information, and funds throughout the entire supply chain.”
 FedEx concentrates more on transportation services and international markets
 UPS concentrates more on the entire value chain while competing domestically.
 FedEx is the world’s largest international air shipping firm
 UPS is the world’s largest package delivery company.

2. What are some of the major and unique strategic actions taken by each firm? Have
these actions been successful?
Actions taken by each firm include:
 When FedEx learned that its contract with U.S.P.S. was selected for
renewal, UPS successfully put a bid on the contract.
 In an effort to support its strength in logistics, UPS agreed to buy
Hungary-based pharmaceutical-logistics company Cemelog Zrt
 FedEx is reconstructing some of its operations to increase efficiency
 FedEx is also increasing its emphasis on coming up with ways to all of
its departments to work together more synergistically
3. Based on the information in the case and from your research, which of these firms do
you predict will be the most successful in the future? Please explain your reasons.
a. Both firms are running strong, and show no signs of stopping anytime soon. As
far as the future goes, UPS seems like its going to surpass FedEx given that
they acquired the contract with the United States Postal Service. UPS also has
a working relationship with Amazon, which is becoming a juggernaut on its
own right. However, with FedEx having a larger presence in the international
market, they may have the edge over UPS in the long run.