Business Wars FedEx vs UPS | When in Rome... | 4
Aug 26, 2020
UPS ventures into Western Europe but faces cultural clashes that threaten its expansion, including a major employee walkout in Italy. Meanwhile, FedEx grapples with internal strife over its risky ZapMail service, as CEO Fred Smith insists on innovation despite skepticism from his team. Tensions rise as both companies navigate differing business practices and set their sights on future growth, with FedEx eyeing opportunities in the Chinese market.
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Culture Clash in Milan
- UPS executives attempted to implement American work practices in Italy, causing immediate conflict.
- Italian workers valued their two-hour lunches and other benefits, leading to a walkout.
UPS's German Turnaround
- UPS initially struggled with its German expansion due to low salaries and difficulty recruiting drivers.
- Increasing pay and improving working conditions led to increased profits.
Expand by Acquisition
- Expand into new markets by acquiring existing companies rather than starting from scratch.
- This allows for faster expansion and leverages the existing workforce.