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Parcel Shipping Industry Analysis. Angela Copeland, Pierre Crozet, Jayne Park, Sarah Todnem. Introduction. Industry: Parcel Shipping Industry Main Players: FedEx, UPS, DHL, USPS Cumulated Revenues: $152 Billion. Background. Porter’s Five Forces. Supplier Power. Intensity of Rivalry. - PowerPoint PPT Presentation
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Parcel Shipping Industry AnalysisAngela Copeland, Pierre Crozet, Jayne Park, Sarah Todnem
Introduction• Industry: Parcel Shipping Industry• Main Players: FedEx, UPS, DHL, USPS• Cumulated Revenues: $152 Billion
Background• Porter’s Five Forces
Sustainable Industry
Profitability
Supplier Power
Buyer Power
Intensity of Rivalry
Potential Entrants
Threat of Substitutes
Threat of New Entry• Important Economies of Scale• Hard to Differentiate• High Capital Requirements to Start New Biz• Leaders Control Distribution Channels• Leaders Have Highly Recognized Brands
• Threat: Moderate/Low
Buyer Power• Size Does Matter (individuals v. corporations)• No Serious Threat of Backward Integration
• Threat: Low
Supplier Power• Unions (all except FedEx)• Foreign Government Licenses• Facilities and Vehicles Suppliers • Oil Industry
• Threat: High
Intensity of Rivalry• Handful of High Powered Rivals• US Economy• High Fixed Costs• Homogeneous Industry • High Exit Barriers
• Threat: High
Threat of Substitutes • Growing Store Partnerships• Growing Online Signatures
• Threat: Low
Conclusions• Threat of New Entry: Moderate Low• Buyer Power: Low• Supplier Power: High• Intensity of Rivalry: High• Threat of Substitutes: Low
Trends• Increase in Stability• Product Differentiation• Continued Integration of Subsidiaries• Technology in the Driver’s Seat
Questions• Questions?
References• BAYE, MICHAEL (2003) Managerial Economics and Business Strategy, Economies
of scale, p183: Mc Graw Hill, Retrieved November 27, 2004• DHL International Ltd., Retrieved November 26, 2004 from DHL web site
http://www.dhl.com• Federal Express, Retrieved November 27, 2004 from FedEx web site
http://www.fedex.com• Isidore, Chris, CNN/Money Senior Writer, CNN Online, “SHOWDOWN: FEDEX VS
UPS” from CNN web site, Retrieved November 27, 2004http://money.cnn.com/pf/features/fedex_ups/
• Park, Kristi, Mail Boxes Etc., Inc. (November 2004), Retrieved November 26, 2004 from Hoover’s Online US http://www.hoovers.com/mail-boxes-etc./--ID__14014--/free-co-factsheet.xhtml
• Porter, Michael E. (1979), How competitive forces shape strategy, Harvard Business Review, Retrieved November 27, 2004
• United Postal Service, Retrieved November 27, 2004 from UPS web sitehttp://www.ups.com
• United States Postal Service, Retrieved November 27, 2004 from USPS web sitehttp://www.usps.com