UPS/Fedex raise rates
12-06-2009, 05:03 PM
#1
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UPS/Fedex raise rates
Interesting comments at the end
UPS ups its rates. Then FedEx matches them. Why, the similarity is eerie -- DailyFinance
UPS ups its rates. Then FedEx matches them. Why, the similarity is eerie -- DailyFinance
12-06-2009, 05:39 PM
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Wow if that reporter wants a real story, all the gas stations here sell regular for about the same price. What is more every time one station raises or lower the price the other stations match it. It is like they are trying to compete or something. I think we need a somebody from the governement to check it out. 
12-06-2009, 06:40 PM
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Originally Posted by FDXLAG
Wow if that reporter wants a real story, all the gas stations here sell regular for about the same price. What is more every time one station raises or lower the price the other stations match it. It is like they are trying to compete or something. I think we need a somebody from the governement to check it out.
12-07-2009, 11:09 AM
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Econ/ Business Strategy 101...
In a a truly competitive/efficient market firms are "price takers" and the market determines the price --- not the individual companies.
...while I am not saying this is necessarily the case with the duopoly FEDEX and UPS enjoy within the US market, it is a very common characteristic of many mature product markets.
I do believe UPS and FEDEX have both decided to compete on service/best value...and a bit of product differentiation.
With that strategy no firm looks to be the "low cost provider", rather it looks to differentiate itself by other means than just product price.
Admittedly, with less players in the market (...low cost DHL leaving the US mkt in Jan 09) this is easier to do.
The ability to compete on service/best value/product differentiation is one of the main differences between the overnight cargo market and the domestic pax market --- and why the cargo mkt has not suffered the cut throat, race to the bottom, price wars domestic pax carriers have experienced.
Here's to FEDEX and UPS continuing to dance together smartly!
Cheers!
In a a truly competitive/efficient market firms are "price takers" and the market determines the price --- not the individual companies.
...while I am not saying this is necessarily the case with the duopoly FEDEX and UPS enjoy within the US market, it is a very common characteristic of many mature product markets.
I do believe UPS and FEDEX have both decided to compete on service/best value...and a bit of product differentiation.
With that strategy no firm looks to be the "low cost provider", rather it looks to differentiate itself by other means than just product price.
Admittedly, with less players in the market (...low cost DHL leaving the US mkt in Jan 09) this is easier to do.
The ability to compete on service/best value/product differentiation is one of the main differences between the overnight cargo market and the domestic pax market --- and why the cargo mkt has not suffered the cut throat, race to the bottom, price wars domestic pax carriers have experienced.
Here's to FEDEX and UPS continuing to dance together smartly!
Cheers!
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