The Battle for Value: Fedex vs Ups Essay Example

reputation. They were, however already the world’s leading delivery company.

But the new opportunities presented with the agreement would be a true test for UPS and how they would handle the pressure from FedEx. UPS changed their logo, heavily invested in new technology and facilities that could maintain quality while reducing costs. The eldest of the two companies, UPS had recently initiated a stock-split and created an IPO in 1999. The money generated from these efforts was used for stock repurchasing. As UPS was reaching their one hundredth birthday, they were trying very hard to sustain their success and head into the new century as an industry leader.

An important factor in the package-delivery industry is customer satisfaction which often leads to repeated purchasing. Delivery companies must do their jobs efficiently and at an affordable price to ensure repeated business and positive word of mouth marketing from satisfied customers. Both UPS and FedEx have done an excellent job of focusing on the customers and meeting their needs because the customer is ultimately the one who controls the success and downfalls of these companies.

Initially UPS began cutting their prices sometimes to half of what FedEx was charging to attract customers. As the years went on, both companies fell into a reliable and predictable pricing pattern that worked for them. Information technology has also been sought out for competitive advantages to increase efficiency, tracking and reliability. FedEx operates with their COSMOS system and UPS operates on their DIADs system. Both companies are fighting to increase their competitive advantages by grabbing new customers and satisfying existing ones.

To attain a sustainable level of success each business must stick to their core

values while still pushing the limits of technology. The customer seeks out reliability and fair prices. FedEx steps into this situation as the underdog but embraces the role right away by nabbing more flights. UPS enters the situation as the elder company who is working hard to re-vamp their image and improve their operations. Whoever can manage the most flights and sustain their client relationships will see the most success in the future.