Company Example
UPS has developed in to a global packaging handling, logistics and Transportation Corporation Since its discovery in 1907 as a messenger company in the United States. United Parcel Service (UPS) has grown into a $36 billion corporation by clearly focusing on the goal of enabling commerce around the globe. Today UPS is a global company with one of the most recognized and admired brands in the world. They have become the world's largest package delivery company and a leading global provider of specialized transportation and logistics services. Every day, they manage the flow of goods, funds, and information in more than 200 countries and territories worldwide (UPS.com, 2006)
However, over the years we have seen the vast progression that has pioneered in the company in the 21st century. UPS is a global renowned corporation that has major importance in a global economic estate. Obviously the corporation that vast competition when it comes down to package delivery. FedEx is global empire that continues to follow the foot step of UPS. Over the last couple of years, we have seen the company grown into Mega Corporation that is leaving its competition behind.
I believe that the competitions between both logistic companies are not in the same categories. UPS is force that is taking the logistic, transportation company in to a new high standard. However, yeas there are some potential risk that it may endure during its process to being king of logistics. “FedEx has slowly gained in competition with UPS in terms of revenue. In a year, FedEx averages about $22 billion in sales while UPS averages $30 billion a year. Sometimes you just have to face the fact that a company’s success is best measured by its resul...
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...is at full force to beat the competition, they are also conducting the same theory to make sure that my door closes as well. The competition is always zeroing into new idea to out whipped, outdate and to ensure you close your business doors. However, I do believe that this business needs to continue to sharpen his tools to move forward in the industry.
Reference:
UPS, United Parcel Service Inc. (UPS) | Statement of Financial Position, Assets, Stock Analysis on Net, retrieved from: http://www.stock-analysis-on.net/NYSE/Company/United-Parcel-Service-Inc/Financial-Statement/Assets
UPS.com, UPS Solutions, retrieved from: http://www.ups.com/content/us/en/bussol/browse/managed_svcs.html
Jim Clayton, The Five Stages of the Strategic Management Process, Chron, retrieved from: http://smallbusiness.chron.com/five-stages-strategic-management-process-18785.html
Frank, Allan D. (1997) “After the UPS Settlement: Who gained, who lost, and what will
...to deal with inbound and outbound logistics, one that is made up mostly of the personnel from outbound logistics. These professionals deal with the second core competency of Deere, logistics, separate from the manufacturing of tractors and lawnmowers. The creation of this team helps eliminate the risk Fedex’s poor performance (managers were not pleased with Fedex’s centralized transportation management service) and need to measure performance of a 3rd part continuously. As a result, performance is self-managed. We expect as the IT system is used to optimize and plan transportation routes amongst inbound and outbound trucks, cost savings will increase more rapidly. We believe internal continuous improvement, leaner logistics operations and synergies amongst all logistics activities will lead to the $69 million goal being met by the third year after implementation.
Wathen, J. (2013). FedEx or UPS: A Rivalry Worthy of Your Attention. The Motley Fool. Retrieved Nov 13, 2013, from http://beta.fool.com/valuemagnet/2013/07/15/fedex-or-ups-a-rivalry-worthy-of-your-attention
The organization is able to build a barrier to new entrants in parcel industry. It is very expensive to set up the services that are equal to the existing organizations. There is high fixed cost associated with establishing the required international transport network. This includes ground transportation vehicles, depots, plants and a retail
FedEx’s modeling capability gave them a competitive advantage as they implemented new methods and technology. They currently have a SuperHub with several regional hubs and packages are managed and tracked by a system called COSMOS. This system allowed customers to know where their packages were at all times and was later integrated for web use, allowing customers to track packages over the Internet. Today, UPS also allows customers to track packages over the Internet and has improved customer service. I would assume that they have developed a mainframe similar to that of FedEx to decrease FedEx’s competitive advantage. The United States Postal Service, which has lower rates, has also increased their customer service and quality. FedEx must find new technological advancements to stay ahead of the competition in the package delivery industry.
1. Is the international market arena in which your athletic footwear company competes characterized by multicountry competition or global competition? Explain why.
FedEx provides shipping services through FedEx Express, Ground, Freight, Custom Critical, Trade Networks, and Supply Chain (FedEx, 2014). Tracking and package management services are available for all services through fedex.com (FedEx, 2014). FedEx also shares knowledge of shipping best practices on its website (FedEx, 2014). FedEx Office is another division of FedEx, where customers have an in-store option for taking care of their shipping, copying, and printing needs (FedEx, 2014). FedEx connects our global economy by linking 99 percent of the world’s GDP (FedEx, 2014). FedEx Express services every US address, as well as 220 other countries (FedEx, 2014). Some of the corporation’s new services include FedEx Delivery Manager and One Rate (FedEx, 2014). FedEx Delivery Manager is a service that is tailored to the needs of the recipient of a package (FedEx, 2014). FedEx One Rate is simply that, flat-rate shipping without the weighing and measuring (FedEx, 2014).
The United States Postal Service is a reliable, excellent, and efficient delivery service. Overall customer rating of any business makes it a profitable and reliable industry. The post office has met these expectations and has gone above and beyond to serve their customers. This delivery service and its employees contribute in many ways to citizens across the nation. They are the best shipping industry in the United States.
UPS is a global parcel transportation company, if we look at the numbers we could say that UPS is the third biggest parcel delivery company in the world.
In 1994, the company changed it image by updating its identity in an effort to distinct itself from its competitors. By formally adopting the name FedEx, the company established itself as Responsive and Global.
In reviewing the case of New Balance Athletic Shoe, Inc. it is clear that there are a few major problems that the company is facing. First of all, New Balance falls behind its other major competitors, Nike, Adidas and Reebok, in the area of marketing. Unlike its competitors, New Balance does not undertake celebrity endorsements. This puts them at a disadvantage when it comes to brand building. This also causes the company to lose out somewhat on gaining awareness on a global scale as it lacks endorsements in major sporting events. Most global brand names generate strong brand recognition through celebrity endorsements in sporting events that would give them the needed momentum to carry their brand name further into the global market.
Business depends very critically upon Fed Ex. If Fed Ex had a major disruption to their delivery system, flowers would not be delivered on time, resulting in dissatisfied customers. For example, if Fed Ex employees went on strike, there would be no alternative equivalent to Fed Ex to deliver flowers to customers. UPS, although an alternative, did not deliver perishable products in the same timely fashion as Fed Ex.
The Shoe Industry consists of a multitude of footwear categories, varying in utility, style and occasion. When overseeing the market for the shoe industry, we must look at the influence of all shoe trades universally to comprehensively understand how the disparities in sales relate to the needs of specific regions. The global retail market within the shoe industry currently represents $185 billion, driven primarily by Asian and Latin American economies and is expected to reach $211.5 billion by 2018. The growth rate globally was 6% between 2004 and 2008, contrasting to the 2% compound annual growth from 2008 to 2012. The United States holds over 24% of the overall industry size it projected over $48 billion in annual revenue in 2012. Domestically, the growth rate has been flat at 0.3%. On a unit volume basis, global footwear consumption for 2012 is approximately 11,421.3 million (in pairs), where the United States makes up roughly 2,741.1 million (in pairs). By 2018 the U.S. Census Bureau has forecasted a steady decline within demand domestically of 3% and an increase of 1% globally.
No company that falls behind the competition is guilty of standing completely still. But sometimes our efforts fail because of the level of commitment to change.
Charles & Keith, a well-recognized women’s footwear brand was established in 1996 in Singapore Amara shopping centre by the two young brothers, Charles Wong and Keith Wong. The company began its foreign market venture in 2000. To date, Charles and Keith has a presence in more than 20 major cities around the world. The brand are well-known internationally today with the vision “to be the most admired fashion-forward company” and the mission “to offer high quality products and services, with a commitment to perfection” in mind all the time (Charles & Keith, 2013).