People tended to support each other. .
Competitors.
FedEx Corporation (FEDEX) was by far its largest and most important operating unit. It was accounted for 84% of total revenues and 83% of operating income in 1998. FEDEX was a time-critical carrier and provided logistics solutions and assistance to other businesses. FEDEX's operating philosophy with respect to these various companies was to operate independently and compete collectively. Airborne Freight was the third-largest U.S express delivery carrier with revenues of over $3 billion. CNF focused on ground delivery and heavyweight airfreight. DHL, a European international express-mail carrier, was active in U.S international shipping. .
SWOT analysis: UPS vs. FEDEX.
Strengths .
Strong brand in the industry Strong brand in the industry.
Loyal customers Operate independently/Compete collectively.
Strong distribution network nationally and internationally/ Strong management team single-handedly pioneered concept of overnight delivery/Moved over 3 million packages everyday.
Consistent financial success $17 billion global transportation and logistics enterprise.
Market share leadership Market share leadership (84% of total revenues and 83% of operating income).
Low cost advantages .
AAA credit rating .
Weaknesses.
Number two to USPS in the deferred segment Net profit margin: 2.8% compared to UPS of 6.5%.
Number two to FedEx in the overnight express market Return on Equity: 10.6% compared to UPS of 25.2%.
Separate operating centers for ground and air.
BBB credit rating.
Opportunity.
Emerged trends of globalization, e-commerce, and supply-chain management Acquired RPS which was second behind UPS in ground delivery business-to-business small-package shipper.
Planned to invest in RPS's existing ground network to expand its reach and capacity .
Planned to increase RPS's customer service through enhancing technology and training.
Threats.
Industry competition: innovation R & D Industry competition: innovation R & D.