New Entrants: LOW Economies of Scale (truck, airplane, global network) High capital requirement

Power of Suppliers: Depend on type of purchases HIGH : Aircraft LOW : IT products Truck Maintenances and repairs

Industry Rivals: HIGH Global competitors UPS, TNT, DHL (with equally strong resources) High fixed cost and high exit barrier lead to aggressive competition

Power of Buyers: HIGH -Intense competition in express delivery industry -Low switching cost -More bargaining power for corporate customers (e.g. Dell Computers, Cisco Systems)

Threat of Substitutes: LOW Minimal substitute products available for physical goods. Only some documents can be sent by Internet, Email and Fax