parcel shipping industry analysis
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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 PresentationTRANSCRIPT
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Parcel Shipping Industry AnalysisAngela Copeland, Pierre Crozet, Jayne Park, Sarah Todnem
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Introduction• Industry: Parcel Shipping Industry• Main Players: FedEx, UPS, DHL, USPS• Cumulated Revenues: $152 Billion
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Background• Porter’s Five Forces
Sustainable Industry
Profitability
Supplier Power
Buyer Power
Intensity of Rivalry
Potential Entrants
Threat of Substitutes
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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
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Buyer Power• Size Does Matter (individuals v. corporations)• No Serious Threat of Backward Integration
• Threat: Low
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Supplier Power• Unions (all except FedEx)• Foreign Government Licenses• Facilities and Vehicles Suppliers • Oil Industry
• Threat: High
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Intensity of Rivalry• Handful of High Powered Rivals• US Economy• High Fixed Costs• Homogeneous Industry • High Exit Barriers
• Threat: High
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Threat of Substitutes • Growing Store Partnerships• Growing Online Signatures
• Threat: Low
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Conclusions• Threat of New Entry: Moderate Low• Buyer Power: Low• Supplier Power: High• Intensity of Rivalry: High• Threat of Substitutes: Low
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Trends• Increase in Stability• Product Differentiation• Continued Integration of Subsidiaries• Technology in the Driver’s Seat
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Questions• Questions?
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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