W
wkmac
Guest
I posted this on another board but thought I'd throw it out here to see what the thoughts of you guys are.
Now That The Contract Is Done
What will be interesting to watch is not the stock price but what happens with UPS' customer base and FedEX Ground. With a 6 year agreement in hand, a growing presence in Asia with the ability now to offer a lower cost transport via Ocean Liner verses Air coupled with the ability to take from production site directly to end user, will this translate into just more delivery volume or will it couple with further growth domestically especially on the ground side? Will this in turn put added pressure on FedEx Ground and force them to lower prices still in order to attract further volume? What will drive the market, price or service or a combination of both? IMO, the next 6 to 9 months for UPS will be very important and in this timeframe could relegate FedEx Ground to just another minor player or see them become a real foe at the very market we to some extent created and dominated for years. Could be fun to watch! JMO.
Now That The Contract Is Done
What will be interesting to watch is not the stock price but what happens with UPS' customer base and FedEX Ground. With a 6 year agreement in hand, a growing presence in Asia with the ability now to offer a lower cost transport via Ocean Liner verses Air coupled with the ability to take from production site directly to end user, will this translate into just more delivery volume or will it couple with further growth domestically especially on the ground side? Will this in turn put added pressure on FedEx Ground and force them to lower prices still in order to attract further volume? What will drive the market, price or service or a combination of both? IMO, the next 6 to 9 months for UPS will be very important and in this timeframe could relegate FedEx Ground to just another minor player or see them become a real foe at the very market we to some extent created and dominated for years. Could be fun to watch! JMO.