![]() Recently, FedEx has been under intense pressure from the Wallstreet analyst community as they have been missing EPS/profit targets and blaming this poor performance mostly on a slowing, global economy. As evidence of this, even though FedEx has significantly lower employee costs than UPS, they are consistently less profitable than their primary competitor. It is also a bit cumbersome for the customer, and this applies to both shippers and recipients, to have separate Ground and Express pick-ups and deliveries. You don’t have to be a Harvard Business School MBA to understand why this condition matters, as operating two separate companies to pick-up and deliver Ground and Express packages is not efficient. Distinct management teams for the two separate operating companies. ![]()
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