United states parcel service largest competitors

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1) My company is United Parcel Service (UPS), their annual revenue for 2017 was $65.84 billion.

Their two largest rivals are:

FedEx - annual revenue for 2017 was $60 billion.

United States Postal Service (USPS) - annual revenue for 2017 was $69.6 billion.

2a) FedEx is commonly known as one of United States Parcel Service's largest competitors, and for good reason. Another top competitor of United States Parcel Service is the United States Postal Service, this is more of an unspoken rivalry even though the two companies are much closer in annual revenue than either of them are with FedEx. These companies are competitive rivals to United States Parcel service because of a few factors, the most important of which being that they target the same market. The second most important being that they compete for their shared resources (personnel, locations, equipment, exclusivity with high end customers and manufactures).

2b) FedEx has taken kindly to their role as the shadow of United States Parcel Service, in fact some argue that this has been their tactic since the companies birth. "FedEx is the superior growth story and has a lot of low-hanging fruit when it comes to improving its operations" ("United Parcel Service vs FedEx", 2017). Basically FedEx is playing the long con against its rival UPS, hoping to sustain their level of growth until they eventually surpass United States Parcel Service.

United States Postal Service (USPS) has had to get a little more clever with their approach to competing with the industry giant that is United States Parcel Service. Aside from their regular customers, USPS has added both UPS and FedEx to their list of currency providers. They have taken advantage of their situation and came up with an interesting deal with many large courier services; they will be available to deliver small packages on behalf of companies who typically deal in larger packages. A USPS employee explains it like this "You see, because they are so large, they don't bother with smaller parcels. They drop off bags of parcels for USPS to disperse among the routes of our town." (Reed, 2017)

Reference no: EM132222264

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