Recommendations of The Battle For Value: Federal Express Corporation Vs United Parcel Service Of America Inc Case Analysis

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Recommendations of The Battle For Value: Federal Express Corporation Vs United Parcel Service Of America Inc Case Study Help

RecommendationsOn the basis of above internal and external analysis of the company in addition to the evaluation of various alternatives, the business is recommended to think about alternative 3. As alternative 3 would allow the company to expand in global markets with no decrease in its regional incomes and any wear and tear of its market position. By considering Alternative 3, the company might keep its store experience and brand uniqueness. Nevertheless, it might also consider alternative 2 that might allow the business to access the marketplaces without any prospective investment. Although, the company could pursue alternative 1 which would allow the company to concentrate on potential worldwide markets rather than the local markets however as the business is highly dependent on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the considerable decline in company's earnings. The company is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The Battle For Value: Federal Express Corporation Vs United Parcel Service Of America Inc Case Analysis Stores

International SegmentsThe company has a long term market position in US which can not be produced quickly in the new markets. The choice would help the company to expand in global markets along with the elimination of issues raised in its local markets related to its variety.

Pros:

• Exploration of brand-new global markets.
• Increase in earnings from international markets.
• Elimination of problems related to diversity.
• Income diversification.
• Step towards being a strong international brand name.

Cons:

• Loss of comprehensive profits from the regional markets.
• Increase in competitors.
• Differences in cultures might led to a failure of the brand name especially in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of The Battle For Value: Federal Express Corporation Vs United Parcel Service Of America Inc Case Analysis Stores

Alternative 2 consists of the intro of online market locations through producing a correct business's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might present a severe threat to the market share of business. Additionally, the competitors are shifting towards click and Recommendations of The Battle For Value: Federal Express Corporation Vs United Parcel Service Of America Inc Case Analysis shops with Space introducing Piperline. This shift towards online markets might minimize the revenues for business. In this circumstance the company could think about presenting Click and Recommendations of The Battle For Value: Federal Express Corporation Vs United Parcel Service Of America Inc Case Solution stores. These shops with a low requirement of funds to settle would enable the business to reach international markets, without ending its domestic stores. The pros and cons of alternative 2 are provided as follows;

Pros:

• Low financial investment
• Decreasing competition danger
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Earnings
• Low Operating Costs
• Easy new market entrance

Cons:

• Risk to the market position
• Elimination of brand Uniqueness
• Removal of the terrific store experience.
• Threat of decline in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another option that the company might think about, is to expand towards the worldwide markets without closing its domestic stores that contributes to the major part of incomes of the company. The advantages and disadvantages connected to Alternative 3 are given listed below;

Pros:

• Lowering competitors danger
• Access to the world markets
• Increasing the size of customer base
• Large Profits
• Exploration of brand-new global markets.
• Boost in profits from worldwide markets.
• Profits diversity.
• Action towards being a strong international brand.

Cons:

• Continuation of issues related to variety.
• Differences in cultures might caused a failure of the brand particularly in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to get market share.



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