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Case 2 invites the student to assess the financial performance of FedEx Corp. and United Parcel Service, Inc (UPS). The two firms have competed for

  • Case 2 invites the student to assess the financial performance of FedEx Corp. and United Parcel Service, Inc (UPS). The two firms have competed for dominance of the package-delivery industry. Please provide answers or solutions to the following questions after you study the case:

    1.Describe the competition in the overnight package delivery industry, and the strategies by which those two firms are meeting the competition. What are the enabling and inhibiting factors facing the two firms as they pursue their goals?

    2. How have UPS and FedEx performed financially since 2010? Which firm is doing better? Please discuss the insights you derived from all of the following sources separately: the firms' financial statements, financial ratios, economic profit (EVA), and stock-price performances.

    3. Provide an update on the performance of the two firms since June 2015, with observations on EVA or other measure of financial performance. Which firm is performing better now? Do you think that either firm can attain a sustainable competitive advantage in this business?

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