In the year 2004, the U. S. domestic express delivery market worth $45 billion. Mainly, this vast market is divided between the two major package delivery companies, United Parcel Services (UPS) and Federal Express Corporations (FedEx). This service is consists of three categories: 1) Weights: Letters, Packages, Freights 2) Mode of Transit: Air, Ground 3) Timeliness: Overnight, second-day, 3-day delivery, regular delivery (4 or more days) The air-express portion of the entire U. S. market worth $25 billion, in which concentration is in letters, packages, overnight and deferred, and air or air-and-ground.
The UPS obtains 22 percent of its revenue from the air-express market where as FedEx which virtually all their activities are based on express delivery. UPS entered in the express delivery market with a price strategy that offered half price as FedEx fairs, but it was not a successful plan because of lack of service quality and not delivering packages on time. Since then, FedEx has the advantage in package express delivery market. In addition, due to the new agreement between China and the U. S. , there is a vast opportunity for both companies to improve their services.
According to economic and industry experts, China would become the world’s second-largest economy within 11 years and the largest by 2039. Therefore FedEx and UPS focused primarily on the import/export package market and not the intra-china domestic market, using local numbers to pick up and deliver parcels within the country . This huge growth in China shows more demand. To compare both companies in terms of their financials, UPS tends to have a better rate on asset, higher package delivery volume, and larger size of revenues (Table 1). UPS has a revenues of $33. 4 billion whereas FedEx of $22. billion.
Also in terms of Economic Value Added (EVA), FedEx carries a negative EVA for most years between 1992 to 2003 while UPS has a growing positive value added to the company. For the year 2003, the economic value added for UPS was $1. 19 billion whereas FedEx $169. 9 million (Table 2). However, UPS seems to be more successful than its competitor, FedEx, by comparing their financial statements, FedEx has a higher rate of growth and Earning Per Share. For Example, in year 2003, net income growth for UPS is a loss of 8. 93% while FedEx has a gain of 16. 9% for the same year (Table 3).
Based on this fact, we can determine that FedEx is more successful in performance considering its growth and being the biggest in China’s package delivery market which is a broad market with the new agreement between the U. S. and China. UPS may increase its productivity and quality of its services in air-express market in order to take a part of this broad market. It also can take advantage of tax shield by doing changes in its financial structure by carrying larger long debt. Moreover, FedEx may take advantage of its reputation in express quality services and expand its operation within the U. S. and in the European market.
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Our Services
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
Essays
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admissions
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Reviews
Editing Support
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
Reviews
Revision Support
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.