UPS’ and FedEx’s strategy, management homework

Management
Tutor: None Selected Time limit: 1 Day

After reading the article “UPS holiday season fiasco: a failure of strategic planning,” describe where the problem was with UPS’ and FedEx’s strategic planning. How did the fear of losing market share affect their strategic planning? What are potential solutions?

Jan 14th, 2016

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the volume of air packages in their  system exceeded the capacity in their  network.this was a challenge to them.Neither company has been overly specific about just what percentage of shipments were affected, or just what wrong.it was  it is much more difficult to flex transportation assets and highly automated sort centers of the kind that UPS and FedEx run.Buying expensive material handling equipment, or new planes and trucks, for a surge that occurs only in a small part of the year, clearly means that these assets are underutilized for most of the year. This is expensive and drives up costs. To maintain profitability, asset intensive companies need to have higher ongoing prices to amortize the added costs of maintaining extra capacity. Or they need to charge extra during the surge, which in some ways is fairer because the customers driving the extra costs pay the fees. Neither UPS or FedEx chose to do the latter, probably out of fear of losing market share to their competitor.

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Jan 14th, 2016

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Jan 14th, 2016
Dec 3rd, 2016
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