The UPS was founded by James in 1907 to fill a gap in the shipping market: local parcel deliveries.

Parcels, which might be sent by stores and restaurants to customers homes, were too large to be efficiently and cost-effectively sent via the post office. UPS spent the following decades establishing a national presence before becoming the first package delivery company to ship to every address in the lower 48 states in 1975. As the first and largest national package delivery company, UPS enjoyed a dominant position in the shipping industry. Yet its authority was challenged in the 1980s, when upstart FedEx (as it was the called) began offering customers a unique “triple play”: overnight service, shipment tracking, and volume discounts. UPS launched its next-day service in 1982 and pushed aggressively in this market for the remainder of the decade. In 1987, it expanded its air fleet by adding 110 planes at a cost of $1.8 billion, thereby forming the 10th-largest airline in the US. By 1990, next-day service accounted for 21% of UPS total business. Although it attempted to keep pace with FedEx in overnight shipping, UPS sought to differentiate itself by building the largest international shipping network. Between 1988 and 1990, UPS entered 145 countries in Europe and Asia, primarily by buying small local couriers. These acquisitions pushed its hare of the foreign shipping market up to 6% from 2% in 1988. These moves abroad enabled UPS to position itself as the “provider of the broadest range of package distribution services and solutions in the world. “Whereas FedEx offered essentially one service--express air delivery—UPS offered a wider range of shipping options in the air and on the ground, and it shipped to more locations. As a result of its broader scope, by 2000, UPS held a much higher share of on-time package delivery (55%) than FedEx (25%). UPS extended its range of services and solutions in the internet-enabled world, adding a host of capabilities for e –commerce customers and launching a logistics business that offered manufacturing, warehousing, and supply-chain services. By 2001, UPS was the clear leader in e-commerce shipments, handling 55% of all online purchases, compared to 10% for FedEx. At the same time, UPS’s logistics business was growing 40% annually, whereas FedEx was struggling to reverse a decline in its own logistics operations. One of UPS’s major wins in this business was designing an online system for Ford that tracked shipments of cars to dealers, which saved Ford an estimated $1 billion in 2001 by reducing the average number of vehicles in inventory. UPS supported its new suite of shipping an logistics services with the 2002 launch of an approximately $50 million ad campaign titled “What Can Brown Do for You?” UPS expanded its service offering again in 2003, when it rebranded more than 3,000 Mail Boxes Etc. nationwide franchises it had acquired in 2001 as The UPS Store. UPS Stores provided one-stop convenience for customers shipping needs and offered standardized shipping rates that were 20% less than the previous average Mail Boxes Etc. rates. In test markets, average UPS shipments from joint-branded store rose 70% annually. FedEx mirrored UPS’s move later that year by acquiring Kinko’s and establishing FedEx Kinko’s joint-branded stores. In 2006, UPS addressed an area where it was perceived to lag behind FedEx: speed. The resulting campaign, which used the tagline “Covering more ground faster than ever,” highlighted UPS’s “fast lane” initiative to speed up shipments between 11 major business centers in the US. And its “expanded early AM” effort to increase the destinations it serves before 7 AM ads depicted UPS trucks shuttling between distant

it remained the dominant player in the domestic package delivery market. Total revenues for 2005 had risen 16% to $42. At the time of the campaign. Furthermore. Another series of ads showcased the same speed in Europe. .8 billion in the same period.6 billion. with a 65% share in 2006. and profits had risen 13% to $12.destinations in the US as if the drive took only seconds. UPS’s business was in good condition.