The Battle For Value 2016 FedEx Corp Versus United Parcel Service Inc Case Solution

These resources are valuable, rare, a few are inimitable and organized. On the other hand, the resources of UPS also range from tangible and intangible and are constantly being utilized to derive success for the company and has a track record of proven effectiveness which spans over many years. These resources include but are not limited to efficient operations, penetration in several industries, local and international presence, IT infrastructure, financial resources, brand positioning with stronger brand equity, updated air fleet, and ground fleet which support both air and ground operations. 

The five forces analysis determines the extent to which external factors influence the business of both companies. Bargaining power of buyers is low on account of operations of fewer companies in the ground and air shipments and provide handful services to the customers, the huge customer base of both UPS & FedEx, access to international deliveries with strong operational networks and efficient routes thereby enabling to attract e-commerce retailers and efficient operations which allow the companies to charge market competitive prices for its services. The bargaining power of suppliers is moderate which is attributable to higher supplier power in the case of Air Fleet since there are only two suppliers of aircraft which includes Airbus & Boeing, and the business of suppliers solely does not depend on UPS & FedEx and thereby giving them moderate negotiating power.