Ups, Fedex, Dhl & Tnt - Who Will Dominate The Worl

3280 Words14 Pages
Introduction As is well known, although both DHL and TNT have a presence in the US market, ground and air superiority are held by UPS and FedEx respectively. Although both companies provide similar services, they have diametrically opposed corporate philosophies. All four companies have been vying for global domination of the Logistics Market, but over the last 10 years this struggle has intensified with a systematic stream of acquisitions. Deutsche Post World Net (DPWN), DHL’s parent company, has bought more than 50 companies, mostly in Europe. UPS ever since it went Public has gone on a shopping spree to fill out its Air Express capabilities, FedEx mirrored this move by acquiring ground transportation brands. This break neck speed of expansion and determination to service the entire supply chain along the most important trade lanes shows no sign of abatement. In this highly competitive rush to dominate global logistics, the question remains – which of these behemoths will succeed in their feverish attempt to be the logistics supplier of choice for the global economy? Can we look at them today and predict the future winners? The History FedEx’s origin in the Air Express business, started in Memphis, TN, in 1973. Today it is still adroitly run by its founder Fred Smith. Its approach to the industry is marketing led, with heavy investment in market research, top notch marketing staffs, and carefully crafted multimedia marketing campaigns. Fred Smith is not afraid to make bold moves, such as the acquisition of Flying Tigers in 1989, which gave him a clear advantage in the Asian Air Express market before China became fashionable, and the visionary introduction of bar-coding to shipment tracking to name just two examples. UPS started in ground transportation, just over a century ago in Seattle. Its present day gargantuan revenues and profits have taken
Open Document