Ups Battle of Value

 UPS; big buercratic, like the gov.

• Focuses on efficiency
• How ups works

• Puts cargo on

Fedex: creative, innovative

• How fed ex works

• Buys planes specifically for hauling cargo
• Used a hub and stoke distribution pattern

• is a system of connections arranged like a wire wheel in which all traffic moves along spokes connected to the hub at the center.

• Provides cheaper and faster service and to more locations than his competitors

U.S package delivery market

• Weight

• Letter (0-2lb)
• Packages(2-70lbs)
• Freight(over 70lbs)

• Mode of transit

• Air
• Ground

• Time Categories

• Overnight
• Deferred delivery(second-day)
• 3 Day delivery
• Regular delivery(4 or more days)

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Fedex has negative cummlative EVA and a lower MVA, They also have higer costs.

UPS has a higher RONA which means for each asset they are having a better return.

Fedex never gave out diviends untill 2003 while ups has since 1992 AND has increase almost each year.

Fedex has a higher revenue growth

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Ups Has higher net rofit margin, ROA,ROE as well as these have growth on average more than fedex