Fedex, UPS and DHL

History In 1913, CJ Tower & Sons, the predecessor of FedEx Trade Networks Transport and Brokerage, a subsidiary of FedEx Trade Network, started operations as a customs broker in Niagara Falls, New York. Only in 1971, FedEx was founded in Little Rock, Arkansas. Since establishing the first Dropbox for general in 1975, FedEx has established and maintained a strategic leadership position in the management of a wide range of transportation services, e-commerce and other business services.

Recent eBay report emphasizes that e-commerce boosts SMEs not only in developed countries but also in world markets. For them, transportation companies such as FedEx, UPS, DHL are increasingly using the cargo for small business as an important element of the business model. This trend does not occur overnight, it will take several decades to appear. Nevertheless, the traditional value chain, which is being sold to multinational companies selling to wealthy customers, sees the beginning of a shift in global markets that no longer dominates the flow of goods across borders . The reduction of non-tariff barriers brought about by the implementation of the TFA will only accelerate this relocation

In the shipping industry there are domestic and foreign competitors such as UPS, FedEx, DHL, TNT. Although these companies are actively competing for market share of the industry, FedEx and UPS gained a lot of attention by exploiting the advancement of technology to respond to the rapidly changing environment. These companies compete with low price, customer segmentation, quality of service, and innovation with great care. This can lead to intense competition between competitors because customers can easily switch to more advantageous companies.

The most important threat to DHL is clearly an increase in the number of competitors. In addition to other 'big three' companies, TNT, UPS, and FedEx competing with DHL, some small and medium enterprises also appear soon. For example, despite China's largest express delivery service company, DHL faces competition with EMS. In addition, how DHL stands out in intense competition can easily be seen in 2008. In that year, DHL unemployed about 15,000 people and withdrew from the US express market. Due to intense competition, DHL is inevitably involved in price competition between companies offering similar services. However, DHL is a large capital intensive enterprise. According to official data from DHL website, there are more than 60,000 cars, 4,500 facilities, and 35,000 touch points all over the world.