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Parcel Shipping Industry Analysis

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.

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Parcel Shipping Industry Analysis

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  1. Parcel Shipping Industry Analysis Angela Copeland, Pierre Crozet, Jayne Park, Sarah Todnem

  2. Introduction • Industry: Parcel Shipping Industry • Main Players: FedEx, UPS, DHL, USPS • Cumulated Revenues: $152 Billion

  3. Background • Porter’s Five Forces Supplier Power Intensity of Rivalry Sustainable Industry Profitability Buyer Power Potential Entrants Threat of Substitutes

  4. 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

  5. Buyer Power • Size Does Matter (individuals v. corporations) • No Serious Threat of Backward Integration • Threat: Low

  6. Supplier Power • Unions (all except FedEx) • Foreign Government Licenses • Facilities and Vehicles Suppliers • Oil Industry • Threat: High

  7. Intensity of Rivalry • Handful of High Powered Rivals • US Economy • High Fixed Costs • Homogeneous Industry • High Exit Barriers • Threat: High

  8. Threat of Substitutes • Growing Store Partnerships • Growing Online Signatures • Threat: Low

  9. Conclusions • Threat of New Entry: Moderate Low • Buyer Power: Low • Supplier Power: High • Intensity of Rivalry: High • Threat of Substitutes: Low

  10. Trends • Increase in Stability • Product Differentiation • Continued Integration of Subsidiaries • Technology in the Driver’s Seat

  11. Questions • Questions?

  12. 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, 2004 http://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 site http://www.ups.com • United States Postal Service, Retrieved November 27, 2004 from USPS web site http://www.usps.com

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