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... Penney has just announced a five-year, $1 billion dollar contract awarded to United Parcels Service (UPS) for delivery service. At the time, this was the largest distribution contract in history, and the fact that it was awarded to UPS surprised many industry insiders. ... Penney and UPS serves as the backdrop for this case, which essentially takes us through the history of Federal Express and UPS - the two major players in the package delivery industry – up through 1995 in an attempt to provide some insight into the future of the industry and what role each company will play in that future. ... Penney announcement serves as a microcosm of bigger issues facing both Federal Express and UPS. The most obvious question that immediately springs from the case is how was UPS able to position itself to capture such a large piece of J. ... The last issue related to this case, and perhaps a minor one, is whether or not other competitors will be able to emerge as major threats to the dominance of Federal Express and UPS in any aspects of their delivery services? ... Analysis
As stated in the case, UPS “…had the reputation as big, bureaucratic and an industry follower. ... Fed Ex was quick to exploit these changes to their advantage in an effort to differentiate themselves from other competitors, specifically UPS.
This strategy played right into the hands of UPS which was able to stand back and study the success or failure of various Fed Ex investments (i.
Approximate Word count = 1206
Approximate Pages = 4.8
(250 words per page double spaced)
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