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 Sustainable Industry Profitability Supplier Power Buyer Power Intensity of Rivalry 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.comwww.dhl.com Federal Express, Retrieved November 27, 2004 from FedEx web site http://www.fedex.comwww.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.comwww.ups.com United States Postal Service, Retrieved November 27, 2004 from USPS web site http://www.usps.comwww.usps.com