Fedex Paper

In: Business and Management

Submitted By klysky
Words 6632
Pages 27
Blue = Leighton
Red = Karissa
Brown = Adam
Black = Jane

The Battle for Value, 2004: FedEx Corp. vs. United Parcel Service, Inc.
FedEx will produce superior financial returns for shareowners by providing high value-added supply chain, transportation, business, and related information services through focused operating companies competing collectively, and managed collaboratively, under the respected FedEx brand.
FedEx Mission Statement (Excerpt)

We serve the evolving distribution, logistics, and commerce needs of our customers worldwide, offering excellence and value in all we do. We sustain a financially strong company, with broad employee ownership, that provides a long-term competitive return to our shareowners.
UPS Mission Statement (Excerpt)

UPS hubs in China as of 2009:
Shanghai and Shenzhen
FedEx hubs in China as of 2009: Guangzhou

Figure [ 1 ] - Source: http://www.travelchinaguide.com/map/

Introduction

June 18, 2004 marked the start of an important international trend in logistics and carrier services. The U.S. and Chinese government came to an agreement that allowed the development of air cargo hubs and landing rights for commercial airlines in China. This pact not only opened up extensive new opportunities for the airborne market in general, but gave FedEx and United Parcel Service (UPS) exclusive cargo transportation rights (Bruner & Carr, 2010). At the time, FedEx was winning the battle for China, with its Chinese volumes nearly doubling from 2003 to 2004. Despite this, rival UPS still held the title as the world’s largest package-delivery company, and had been active in China since the late 1980’s (Bruner & Carr, 2010). FedEx had only done business in China since 1995 (Roth).
Because of the importance of China to the shipping and logistics industry, this paper uses the degree to which both FedEx and UPS achieved…...

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