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The battle for value 2004 fedex corp vs united parcel service inc?
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∙ 13y ago
Set in June 2004, this case invites the student to assess the financial performance of FedEx Corp. and United Parcel Service, Inc (UPS).
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How much does Fedex express service cost?
The cost of FedEx Express Service will depend on the size of your package and how much your package weighs. The cost will also depend on where you are shipping it to. The average cost to ship is from $29-$100.
What are the four elements of the marketing mix and what are the effects of implementation of the marketing mix elements on development of the FedEx marketing strategy and tactics?
Marketing Mix: Federal ExpressByR. NowaidBilly Durant once said, "A good product would sell itself," and Henry Ford said, "Any customer can have a car painted any color that he wants so long as it is black." Traditionally, the common business believe was not customer-centric. Ever since Borden introduced the term marketing mix in 1953, and McCarthy categorized the marketing mix in 1960, the traditional views changed forever.Federal Express (FedEx) is one of the world's leading private parcel carriers that is operating in 214 countries around the world. FedEx employs an extensive marketing program to serve target markets and customers around the world.The Marketing Mix ConceptThe marketing mix is "the controllable variables that the company puts together to satisfy a target group." The marketing mix transforms the marketing strategy into action by using specific tools commonly known as the four Ps, product, place, promotion, and price.The entire FedEx operation heavily relies on the company's intense marketing scheme. FedEx management relies on market information to create and alter products, service destinations, prices, and promotion strategies.ProductThe product is "the good or service for the target's needs" (Perreault, et. al., 2009, p. 36). FedEx originally operated as a distribution channel for express parcel deliveries; however, that product line has extended to copy centers as well.PlaceThe place is "concerned with all the decisions involved in getting the 'right' product to the target market's Place." FedEx customer base and marketplace is extended from the continental United States (US) to the most remote parts of the world.PromotionPromotion is "concerned with telling the target market or others in the channel of distribution about the 'right' product." FedEx promotions are designed to create brand recognition so that customers can associate FedEx with speed, reliance, and quality service.PricePrice is "making it right." Pricing by itself is a comprehensive analytical study that must embrace factors like the entire cost of marketing mix, competition, customer reaction, and other socioeconomic inventories. In 2004, FedEx was the third parcel carrier in Afghanistan (after TNT and DHL). FedEx was charging excessive for a flat parcel to be delivered internationally from Afghanistan; since TNT and DHL were offering the same service at a lower price, Fed Ex was forced to reestablish new pricing guideline that would be more competitive.The FedEx Marketing PlanThe FedEx marketing plan is one of the most comprehensive and effective strategies in the express parcel delivery industry. "Central to FedEx's global marketing strategy is a rigid adherence to the brand identity: Speed, reliability and connectivity are at the heart of the brand's identity and the same message is religiously conveyed everywhere." In an ever-changing global marketplace, FedEx brand marketing tactics kept the company on the competitive edge with dynamic and innovative solutions. Even with the economic turmoil, FedEx is profitable.FedEx BackgroundFedEx was found by Frederick Smith in 1973 using an eight million dollar inheritance. FedEx handles more than seven million packages per day with gross income exceeding 20 billion dollars in 2006.FedEx product lines.FedEx has seven product lines (FedEx Express® FedEx Ground® FedEx Freight® FedEx Custom Critical® FedEx Trade Networks® FedEx Services® Kinko's®) and operates under a single management umbrella.FedEx Express®This division is the world's largest transportation company, operating in 214 countries. Federal Express Corporation owns its own fleet of 661 aircraft.FedEx Ground®This division is second to the United States Postal Service (USPS) in overnight small package shipment.FedEx Custom Critical®This division is the world's largest door-to-door urgent shipment company operating in the United States, Canada, and Europe.FedEx Trade Networks®This division is a freight forwarding and customs brokerage house aimed to facilitate international trade.FedEx Freight®This division is the largest US regional less-than-truck load (LTL) freightliners.FedEx Services®This division is a supply chain management and technology company.Kinko's®This subsidiary is a business service center with more than 1200 retail stores that provides copy, fax, publishing, and back-office support. Federal Express purchased Kinko's in 2004 for 2.4 billion dollars. FedEx spent more than 700,000 hours in cross training Kinko's employees on how to handle FedEx packages.FedEx Marketing StrategyEach product line exposes the company to a variety of risks and opens the door to a number of opportunities. The FedEx product lines are diverse; therefore, only the corporate marketing plan and strategy are analyzed. The FedEx marketing department is in charge of coordinating marketing and brand recognition among Federal Express subsidiaries and product lines. The marketing efforts include networking, technology support, and data management.Product.FedEx products are cross branded and interconnected for delivering single-point easy access shipping for customers. Users of one product can cross-over to another product line and use the same account information from point of creation to final delivery. Essentially, FedEx policy is to acquire businesses and develop product lines that can increase the company's revenues and keeping FedEx fleet full and moving at all times.Place.FedEx serves 214 countries and every major city in the United States, Canada, and the European Union. In line with the company's policies, in 2003, FedEx purchased Kinko's Copy Center. Acquisition of Kinko's brought unparallel abilities that previous merger acquisitions did not offer for FedEx. 1200 store retail chain was popular among the corporate world and consumers who needed to overnight business plans, résumés, reports, and any valuable document. Federal Express Corporation uses Kinko's stores as a shipping outlet kiosk.Promotion.Federal Express has a clear promotional vision: increase shipping. Federal Express Corporation has set a number of partnerships in place with distribution centers, supply chain management firms, government agencies, and other parcel delivery companies. Federal Express and the United States Postal Service signed two contracts, each for a term of seven years, known as Global Express Guaranteed (GXG); under the terms of the contract FedEx will deliver all express packages for the USPS. Additionally, in the past 10 years, Federal Express created partnership agreements with a number of giant merchandizing companies like Google, eBay, Amazon, Overstock.com, and Home Shopping Network to reduce the cost of shipping and increase the volume of parcel deliveries.Price.Pricing structure is complicated because it is affected by number of factors: (1) cost of fuel and energy; (2) tariffs, duties, and taxes; (3) rentals, leases, and utilities; (4) fluctuating labor costs; (5) foreign subsidies; and (6) competition pricing. The U.S. government does not offer any subsidies for the transportation sector except for the USPS; however, the European Union subsidizes the entire transit and transport industry for local companies. FedEx does not receive any government subsidies like its competitors: USPS, DHL, and TNT.ConclusionOrganizations are heavily reliant on marketing as a pillar of the business structure. FedEx grew from shipping six packages on the day it opened its doors to seven million packages per day.
How does FedEx compare in price to UPS?
FedEx and UPS are two companies that ship products. Some people prefer FedEx over UPS and vice versa. On average FedEx is cheaper than UPS.
What is fedex weakness?
Fedex cannot control the weather, or aircraft/vehicle breakdowns.
Is DHL FedEx and UPS a perfect competition?
Oligopoly
Who is worth more fedex of UPS?
UPS (United Parcel Service) has more assets than FedEx, about 35 billion USD to FedEx's 28 billion USD.
What does the acronym UPS means?
UPS stands for United Parcel Service, a competitor of FedEx (Federal Express) and the USPS (United States Postal Service).
I've just sold an item on ebay now how do I ship it?
You can choose the United States Postal Service, FEDEX, or United Parcel Service. Contact all three for shipping prices.
How long does a 50g parcel take from texas to London with FedEx?
A 50 g parcel from Texas to London, United Kingdom, will take between 2 and 4 working days with FedEx. The exact length of time will depend on the type of service chosen.
Is FedEx related to US Post Office?
No. FedEx and the US Post Office are not related, however, FedEx offers a service called FedEx SmartPost, which is an agreement between FedEx and the USPS, where FedEx moves the parcels from point A to B and then the packages are handed back over to the USPS, who will then make the delivery on parcel.
Which parcel delivery service should I trust for my small business needs?
Your local post office should be the best one for parcel delivery service for your small business needs. If for faster service, you might want to use UPS or FedEx, but the rates are much higher.
What are some popular international freight companies?
Some popular freight companies include: DHL, Fedex (Federal Express), UPS (United Parcel Service), TransAmerica Transport, R&L Carriers, Daylight Transport andUSF.
Which US postal carriers offer fast shipping?
The US postal carriers that offer fast shipping are: DHL , "UPS - United Parcel Service", "FEDEX - Federal Express", "USPS - United States Postal Service", "EMS - Express Mail Service", "TNT - Track n Trace". These companies offer express delivery and overnight shipping services.
How can one send gifts to another continent using parcel service?
There are many governmental as well as private courier services to send parcel to another continent. Some of the good one are UPS, Fedex and DHL. The price of parcel depend on the continent distance and the weight of the gift.
Is there a different type of tracking number between FedEx small parcel and FedEx Freight?
Yes there is a difference. FedEx small parcel tracking numbers are usually anywhere from 12-15 numbers, there are NO letters in small parcel tracking numbers. FedEx Freight tracking numbers are usually 3 letters and 8 or 9 digits. Some of freights tracking numbers can be a mix of letters and numbers and some are all numbers
Does fedex or ups deliver mail to the court?
Neither. Its the United postal service, ran by the government.
What are the top 5 courier companies in world?
The leading courier companies vary by region, but typically are those that serve the most area internationally. Based on the volume of business it does, the biggest in the world right now is United Parcel Service (UPS) with Federal Express a close second.
