Business Model Comparison Essay

The tape drive and logistics assiduity is a six coke and seventy billion dollar a year industry fit in to SJ Consulting Group. A logistics comp any(prenominal) helps transport people, cargo, and merchandise, by land, or sea. It consists of many take of transportation, which include freight trains, cargo ships, and planes. Logistics and transportation companies are an important portion of everyday vocation and life. The need of exports and imports on an international scale burn down only happen through a transportation company. If a family decides to hunt cross-country or over seas, it is planned through a transportations company. What has pose the difference in most popular logistics companies is the difference in their work models and what logistic purpose they are here to meet. Loc ally we drop deuce carriers that are an everyday household name lets understand the difference if any in there set up, and business matrix. When people think of transportation rescue servic es there are two names that play on to mind and that is UPS and caterEx. These two brands are leaders and competitors in the transportation industry and have built a sustainable competitive advantage. When looking at these companies they seem to operate in the same manner, but there are differences that separate them in business. duty Model FormsBusiness model for FedEx is close tothing that has shown to have controversy within the industry. FedEx currently uses the avower base business model. This is where for each one employee is basically a contractor for FedEx. FedEx is largely credited with having pioneered the independent contractor work model in the logistics industry. Under this system, workers function as freelance(a) drivers with their own routes, covering the costs of their own trucks, gasoline, uniforms and so forth. While corporations acquire the contractor system gives drivers flexibility and strong incentives as small businesses, critics plead its simply a w ay to shift the costs of utilization onto workers and avoid payroll taxes and workers-compensation costs. (Reagan Appointee Unravels FedExs Business Model In Court Ruling)United Parcel Service (UPS) has been in business for 66 years longer than FedEx. Its longevity gives the company seniority in delivery services over FedEx. When looking at UPS you can see their index to partner with businesses throughout the years across the globe beingness their main curb source in transporting their products. For a global book wholesaler, green business is good business. When the company wanted to reduce the amount of paper it utilize in its supply chain, it turned to long- condemnation provider UPS to find the answer. UPS developed the populaces first paperless solution for generating international shipping documentation digitally, which not only helped the company meet its environmental goals but also modify the wholesalers order accuracy while saving time and money (There Is Huge Compet itive vantage in Logistics, 2010). Staying advance(a) is UPS competitive advantage.FedEx is a business that operates with over 300,000 employees and has managed to grow this big in less than half a century. With its recent approach towards bettering the environment with victimization eco-friendly products throughout the company FedEx is showing a care for the world as a competitive advantage. They are using equipment that produces less pollution along with staff that strategically planned shorter routes to minimize equipment use. The products employ to ship products, much(prenominal) as boxes envelopes and FedEx office store supplies are recycled and reused.Advantages and DisadvantagesTwo companies like Fed Ex and UPS are the biggest type of ownership in business. They are some(prenominal) publicly traded companies and have a huge part on the blood market. Lets take a look at some advantages and disadvantages of this type of ownership. Going public is an expensive, time-consum ing process. A corporation mustiness put its affairs in order and prepare reports and disclosures that comply with U.S. Securities and stand in Commission regulations concerning initial public offerings. Taking your company public increases the potency liability of the company and its officers and directors for mismanagement. By law, a public corporation has an engagementto its shareholders to maximize shareholder profits and disclose operational information. The capital of a public company is generally raised from the public. People belonging to all walks of life throughout the country can buy shares, which are priced at low levels. The liability of members of a public company is limited. They have to mettle limited risk. The shares of a public company are freely transferable. This makes coronation in the shares liquid and an investor is not bound to remain with the company. There is unfathomable chain for growth and expansion of business. New shares can be used to raise ad ditional capital. Experts can be employed to manage the change magnitude business activities.ConclusionLongevity and innovation is definitely the name of the adventure in any type of business model. Both FedEx and UPS have met their tint in the logistics industry. FedEx gives a more liberal way of business by giving the drivers a small business set up, and UPS is looking to stay a few steps ahead of the game with trends like being environmental friendly, saving natural resources, cutting costs, and using technology to make logistics run more efficiently. Combined parcel carriers like FedEx and UPS are developing vigorously because of solid matrix models and the need of their existence. It is imperative in the scope of businesses that its components are solid, smooth sailing, and always one step ahead of the game.ReferencesA Better Future. (1995-2012). Retrieved from http//earthsmart.van.fedex.com/ This is a hanging indent. To keep the Reagan Appointee Unravels FedExs Business Mo del In Court Ruling) There is Huge Competitive Advantage in Logistics. (2010). Retrieved from http//www.ogilvy.com/News/Press-Releases/September-2010-New-UPS-Campaign.aspx U.S. Securities and Exchange Commission Going Publichttp//www.preservearticles.com/2012022823825/what-are-the-advantages-of-a-public-company.html