Microsoft Monopoly Case Study - 703 Words

Microsoft Monopoly Case Do old monopoly laws still pertain to life in a modern context? Recently, innovative companies have been hassled by the American government because of their potential for holding a monopoly over the ever-evolving computer systems and processing industries. Although Microsoft may have been in an unfair position, therefore negatively impacting the market as a whole, not all monopolies are bad, as examples of federal agencies clearly show. In 1998, Microsoft was hit with a major blow. It was being investigated for violating Sections 1 and 2 of the Sherman Antitrust Act of 1890. This as a serious controversy, as Microsoft had been producing some of the latest innovations in the personal and industry computer software and processing industries. There were several issues that were at the forefront of the investigation against Microsoft. The company was being blamed for holding a monopoly of Intel computer systems (Fisher 2000). The company held such a monopoly over the innovative new compu ter systems and software used in Intel Processors, it had the capability of charging much more than what would be acceptable within a more competitive market (Wilcox 1999). Also, web browser issues regarding its bundling Microsoft owned Netscape with Internet Explorer was a major issue of why Microsoft was investigated. U.S. District Judge Thomas Penfield Jackson stated at the time that Microsoft enjoys so much power in the market for Intel-compatible PC operatingShow MoreRelatedCase Study of the Microsoft Monopoly599 Words   |  2 PagesCase Study of the Microsoft Monopoly Introduction Microsoft has a long history of engaging in monopolistic behavior, from the initial efforts to protect their operating system business to the forced bundling of key software components including Internet Explorer (Meese, 1999). The goals of this analysis include a critical evaluation of why Microsoft has been investigated for antitrust violations, an assessment of how they are trying to gain monopolistic strength in the computer software industryRead MoreCase Study Economics- Microsoft and Monopoly808 Words   |  4 PagesMicrosoft and Monopoly Case Study of Strategies used by Microsoft to leverage its monopoly position in operating systems in Internet Browser market Introduction: Microsoft has monopoly in PC operating systems, Windows operating systems which are used` in more than 80% of Intel based PC’s. This market has high technological barriers. Threat to Microsoft is not from new operating systems but from alternate products such as browsers, which are new softwares that can be used with multiple operatingRead MoreCase Study - Playing Monopoly Microsoft1584 Words   |  7 PagesMicrosoft’s journey towards Monopoly Summary The case evolves around the unethical monopolistic actions taken by Microsoft to achieve monopoly. Some major facts in the case are given below – †¢ In 1980 IBM representative met bill gates for Operating System †¢ Bill Gates bought Operating System from a friend in $60,000 Microsoft licensed MS-DOS to IBM with condition that it could license it to others too †¢1981 IBM started mass production of and MS-DOS became standard Operating System for PersonalRead More The Microsoft Monopoly Issue Essay1499 Words   |  6 PagesThe Microsoft Monopoly Issue The best position on the Microsoft monopoly problem is one best for the general public, those who are and will be using Intel-PC products. This position is in opposition to Microsoft and to support the State and the public. This will consequently give the public better choice, thereby keeping the price of the product down and benefiting the general public. To understand why this position is the best choice two simple questions must be answered. The first is,Read MoreMonopoly Between Monopoly And Oligopoly1561 Words   |  7 PagesMonopoly isn’t just a board game where players move around the board buying, trading and developing properties, collecting rent, with the goal to drive their opponents into bankruptcy. However, the game Monopoly was designed to demonstrate an economy that rewards wealth creation and the domination of a market by a single entity. Monopoly and Oligopoly are economic conditions where monopoly is the dominance of one seller in the market and an olig opoly is a number of large firms that dominate in theRead MoreMicrosoft Antitrust Paper1149 Words   |  5 PagesViewed together, three main facts indicate that Microsoft enjoys monopoly power. First, Microsofts share of the market for Intel-compatible Personal Computer (PC) operating systems is extremely large and stable. Second, Microsofts dominant market share is protected by a high barrier to entry. Third, and largely as a result of that barrier, Microsofts customers lack a commercially viable alternative to Windows, the operating system of all PCs. Microsoft enjoys so much power in the market for Intel-compatibleRead More Government Regulation of the Microsoft Corporation Essay example1611 Words   |  7 PagesRegulation of the Microsoft Corporation Does the government have the right to regulate large corporations, namely the Microsoft Corporation? If so, then to what extent can the government do so? Based on our research, it is the government’s responsibility to remedy Microsoft’s noncompetitive behavior in order to increase fair competition. The Microsoft vs. the Government trial has many possible outcomes, which may affect a specific party. Not only does the outcome affect the Microsoft CorporationRead More Microsoft Antitrust Paper1119 Words   |  5 Pagesthree main facts indicate that Microsoft enjoys monopoly power. First, Microsofts share of the market for Intel-compatible Personal Computer (PC) operating systems is extremely large and stable. Second, Microsofts dominant market share is protected by a high barrier to entry. Third, and largely as a result of that barrier, Microsofts customers lack a commercially viable alternative to Windows, the operating system of all PCs. nbsp;nbsp;nbsp;nbsp;nbsp;Microsoft enjoys so much power in the marketRead MoreThe Types Of Market Structures1640 Words   |  7 Pageshighlight the criteria of firms, and express the barriers that they may face with entering. There are four types of competition across various market structures. The types of competition are perfect competition, monopolistic competition, oligopoly, and monopoly. Each types of market structures are a direct reflection of the current economic market state. When a company assesses market structures, the company must conduct proper research on the customers, competition, and costs. Understanding the currentRead MoreA Comparative Analysis of the Current Economic Situation of the United States and the Situation Five Years Ago1237 Words   |  5 Pagesits customers. Situation in the past 50 years in which the government has stopped a monopoly from occurring The case of Microsoft Company versus United States government was the company was accused of abusing monopoly powers. Circumstances of the proposed monopoly and the reason the government stepped in Microsoft Company has a monopoly of the windows operating system. The company was said to abuse monopoly powers by bundling of the operating system with Internet explorer in personal computers

The Yellow Wallpaper By Charlotte Perkins Gilman - 2032 Words

â€Å"The Yellow Wallpaper† by Charlotte Perkins Gilman is a poem about women facing unequal marriages, and women not being able to express themselves the way they want too. Charlotte Perkins Gilman was born in 1860, and died in 1935. This poem was written in 1892. When writing this poem, women really had no rights, they were like men’s property. So writing â€Å"The Yellow Wallpaper† during this time era, was quite shocking and altered society at the time. (Charlotte Perkins Gilman and the Feminization of Education). Charlotte Perkins Gilman was an extreme feminist activist during her time. Charlotte was a self- educated woman, and did all she could in life to help serve humanity. Her lover unexpectedly proposed to her leaving her completely torn about work and marriage. Being married at this time era, was being a housewife. Marriage was extremely traditional, meaning she would have to give up overall everything and obey her husband. This gave Charlotte a nervous breakdown, or in other words, she cracked up. Her treatment to fix her breakdowns were total rest because doctors didn’t know how to cure depression during that time. This drove her almost mentally insane. The only way she fully cured herself was by leaving her husband, home, child and going back to writing movements of their day. (Charlotte Perkins Gilman and the Feminization of Education). Gilman redefined womanhood of her time. She preached and declared woman to be equal to men, in all aspects of life, all around theShow MoreRelatedThe Yellow Wallpaper By Charlotte Perkins Gilman885 Words   |  4 Pagesbeen a stigma around mental illness and feminism. â€Å"The Yellow Wallpaper† was written by Charlotte Perkins Gilman in the 1900’s. â€Å"The Yellow Wallpaper† has many hidden truths within the story. The story was an embellished version her own struggle with what was most likely post-partum depression. As the story progresses, one can see that she is not receiving proper treatment for her depression and thus it is getting worse. Gilman uses the wallpaper and what she sees in it to symbolize her desire to escapeRead MoreThe Yellow Wallpaper By Charlotte Perkins Gilman846 Words   |  4 PagesHumans are flawed individuals. Although flaws can be bad, people learn and grow from the mistakes made. Charlotte Perkins Gilman’s short story, †Å"The Yellow Wallpaper†, gives one a true look at using flaws to help one grow. Gilman gives her reader’s a glimpse into what her life would have consisted of for a period of time in her life. Women were of little importance other than to clean the house and to reproduce. This story intertwines the reality of what the lives of woman who were considered toRead MoreThe Yellow Wallpaper By Charlotte Perkins Gilman1362 Words   |  6 Pagesas freaks. In the short story â€Å"The Yellow Wallpaper† by Charlotte Perkins Gilman, both of these elements are present. Gilman did a wonderful job portraying how women are not taken seriously and how lightly mental illnesses are taken. Gilman had, too, had firsthand experience with the physician in the story. Charlotte Perkins Gilman s believes that there really was no difference in means of way of thinking between men or women is strongly. â€Å"The Yellow Wallpaper† is a short story about a woman whoRead MoreThe Yellow Wallpaper By Charlotte Perkins Gilman1547 Words   |  7 PagesCharlotte Perkins Gilman s career as a leading feminists and social activist translated into her writing as did her personal life. Gilman s treatment for her severe depression and feelings of confinement in her marriage were paralleled by the narrator in her shorty story, The Yellow Wallpaper. Charlotte Perkins Gilman was born in 1860 in Hartford, Connecticut. Her parents, Mary Fitch Perkins and Fredrick Beecher Perkins, divorced in 1869. Her dad, a distinguished librarian and magazine editorRead MoreThe Yellow Wallpaper By Charlotte Perkins Gilman904 Words   |  4 Pagescom/us/definiton/americaneglish/rest-cure?q=rest+cure). Charlotte Perkins Gilman wrote The Yellow Wallpaper as a reflection of series of events that happened in her own life. Women who fought the urge to be the typical stereotype were seen as having mental instabilities and were considered disobedient. The societal need for women to conform to the standards in the 1800s were very high. They were to cook, clean and teach their daughters how to take care of the men. Gilman grew up without her father and she vowedRead MoreThe Yellow Wallpaper By Charlotte Perkins Gilman999 Words   |  4 Pages â€Å"The Yellow Wallpaper† is a story of a woman s psychological breakdown, which is shown through an imaginative conversation with the wallpaper. The relationship between the female narrator and the wallpaper reveals the inner condition of the narrator and also symbolically shows how women are oppressed in society. The story, read through a feminist lens, reflects a woman s struggle against the patriarchal power structure. In the â€Å"The Yellow Wallpaper†, Charlotte Perkins Gilman uses the wallpaperRead MoreThe Yellow Wallpaper By Charlotte Perkins Gilman Essay1208 Words   |  5 Pagesthat wallpaper as I did?† the woman behind the pattern was an image of herself. She has been the one â€Å"stooping and creeping.† The Yellow Wallpaper was written by Charlotte Perkins Gilman. In the story, three characters are introduced, Jane (the narrator), John, and Jennie. The Yellow Wallpaper is an ironic story that takes us inside the mind and emotions of a woma n suffering a slow mental breakdown. The narrator begins to think that another woman is creeping around the room behind the wallpaper, attemptingRead MoreThe Yellow Wallpaper By Charlotte Perkins Gilman846 Words   |  4 PagesThe dignified journey of the admirable story â€Å"The Yellow Wallpaper† created by Charlotte Perkins Gilman’s, gave the thought whether or not the outcome was influenced by female oppression and feminism. Female oppression and feminist encouraged a series of women to have the freedom to oppose for their equal rights. Signified events in the story â€Å"The Yellow Wallpaper† resulted of inequality justice for women. Charlotte Perkins Gilman gave the reader different literary analysis to join the unjustifiableRead MoreThe Yellow Wallpaper By Charlotte Perkins Gilman1704 Words   |  7 PagesEscaping The Yellow Wallpaper Charlotte Perkins Gilman (1860-1935) whom is most acclaimed for her short story The Yellow Wallpaper (1891) was a women’s author that was relatively revolutionary. Gilman makes an appalling picture of captivity and confinement in the short story, outlining a semi-personal photo of a young lady experiencing the rest cure treatment by her spouse, whom in addition to being her husband was also her therapist. Gilman misused the rest cure in The Yellow Wallpaper to alarm otherRead MoreThe Yellow Wallpaper By Charlotte Perkins Gilman948 Words   |  4 Pagesthis and in ways that lead them to depression, anxiety, who knows what else. In the story â€Å"The Yellow Wallpaper† by Charlotte Perkins Gilman the main character, Jane, faces those terrible things that eventually lead her to becoming insane. The traits that make up who Jane is, provides the readers with the importance of her identity throughout the story and they also make up the context of â€Å"The Yellow Wallpaperà ¢â‚¬ . Trying to free herself from her nervous depression, Jane is propelled into insanity. The

The Crystal Shard 9. No More a Boy Free Essays

Regis stretched out lazily against his favorite tree and enjoyed a drawn-out yawn, his cherubic dimples beaming in the bright ray of sunlight that somehow found its way to him through the thickly packed branches. His fishing pole stood poised beside him, though its hook had long since been cleaned of any bait. Regis rarely caught any fish, but he prided himself on never wasting more than one worm. We will write a custom essay sample on The Crystal Shard 9. No More a Boy or any similar topic only for you Order Now He had come out here every day since his return to Lonelywood. He wintered in Bryn Shander now, enjoying the company of his good friend Cassius. The city on the hill didn’t compare to Calimport, but the palace of its spokesman was the closest thing to luxury in all of Icewind Dale. Regis thought himself quite clever for persuading Cassius to invite him to spend the harsh winters there. A cool breeze wafted in off Maer Dualdon, drawing a contented sigh from the halfling. Though June had already passed its midpoint, this was the first hot day of the short season. And Regis was determined to make the most of it. For the first time in over a year he had been out before noon, and he planned to stay in this spot, stripped of his clothes, letting the sun sink its warmth into every inch of his body until the last red glow of sunset. An angry shout out on the lake caught his attention. He lifted his head and half-opened one heavy eyelid. The first thing he noticed, to his complete satisfaction, was that his belly had grown considerably over the winter, and from this angle, lying flat on his back, he could only see the tips of his toes. Halfway across the water, four boats, two from Termalaine and two from Targos, jockeyed for position, running past each other with sudden tacks and turns, their sailors cursing and spitting at the boats that flew the flag of the other city. For the last four-and-a-half years, since the Battle of Bryn Shander, the two cities had virtually been at war. Though their battles were more often fought with words and fists than weapons, more than one ship had been rammed or driven into rocks or up to beach in shallow waters. Regis shrugged helplessly and dropped his head back to his folded waistcoat. Nothing had changed much around Ten-Towns in the last few years. Regis and some of the other spokesmen had entertained high hopes of a united community, despite the heated argument after the battle between Kemp of Targos and Agorwal of Termalaine over the drow. Even on the banks of the lake across the way, the period of good will was short-lived among the long-standing rivals. The truce between Caer-Dineval and Caer-Konig had only lasted until the first time one of Caer-Dineval’s boats landed a valuable and rare five-footer, on the stretch of Lac Dinneshere that Caer-Konig had relinquished to her as compensation for the waters she had lost to Easthaven’s expanding fleet. Furthermore, Good Mead and Dougan’s Hole, the normally unassuming and fiercely independent towns on the southernmost lake, Redwaters, had boldly demanded compensation from Bryn Shander and Termalaine. They had suffered staggering casualties in the battle on Bryn Shander’s slopes, though they had never even considered the affair their business. They reasoned that the two towns which had gained the most from the united effort should be made to pay. The northern cities, of course, balked at the demand. And so the lesson of the benefits of unification had gone unheeded. The ten communities remained as divided as ever before. In truth, the town which had benefited the most from the battle was Lonelywood. The population of Ten-Towns as a whole had remained fairly constant. Many fortune hunters or hiding scoundrels continued to filter into the region, but an equal number were killed or grew disenchanted with the brutal conditions and returned to the more hospitable south. Lonelywood, though, had grown considerably. Maer Dualdon, with its consistent yield of knucklehead, remained the most profitable of the lakes, and with the fighting between Termalaine and Targos, and Bremen precariously perched on the banks of the unpredictable and often flooding Shaengarne River, Lonelywood appeared the most appealing of the four towns. The people of the small community had even launched a campaign to draw newcomers, citing Lonelywood as the â€Å"Home of the Halfling Hero,† and as the only place with shade trees within a hundred miles. Regis had given up his position as spokesman shortly after the battle, a choice mutually arrived at by himself and the townsfolk. With Lonelywood growing into greater prominence and shaking off its reputation as a melting pot of rogues, the town needed a more aggressive person to sit on the council. And Regis simply didn’t want to be bothered with the responsibility anymore. Of course, Regis had found a way to turn his fame into profit. Every new settler in the town had to pay out a share of his first catches in return for the right to fly Lonelywood’s flag, and Regis had persuaded the new spokesman and the other leaders of the town that since his name had been used to help bring in the new settlers, he should be cut in for a portion of these fees. The halfling wore a broad smile whenever he considered his good fortune. He spent his days in peace, coming and going at his leisure, mostly just lying against the moss of his favorite tree, putting a line in the water once and letting the day pass him by. His life had taken a comfortable turn, though the only work he ever did now was carving scrimshaw. His crafted pieces carried ten times their old value, the price partially inflated by the halfling’s small degree of fame, but moreso because he had persuaded some connoisseurs who were visiting Bryn Shander that his unique style and cut gave his scrimshaw a special artistic and aesthetic worth. Regis patted the ruby pendant that rested on his bare chest. It seemed that he could â€Å"persuade† almost anyone of almost anything these days. * * * The hammer clanged down on the glowing metal. Sparks leaped off the anvil platform in a fiery arc, then died into the dimness of the stone chamber: The heavy hammer swung again and again, guided effortlessly by a huge, muscled arm. The smith wore only a pair of pants and a leather apron tied about his waist in the small, hot chamber. Black lines of soot had settled in the muscular grooves across his broad shoulders and chest, and he glistened with sweat in the orange glow of the forge. His movements were marked by such rhythmic, tireless ease that they seemed almost preternatural, as though he were the god who had forged the world in the days before mortal man. An approving grin spread across his face when he felt the rigidity of the iron finally give a bit under the force of his blows. Never before had he felt such strength in the metal; it tested him to the limits of his own resilience, and he felt a shiver as alluring as the thrill of battle when he had at last proven himself the stronger: â€Å"Bruenor will be pleased.† Wulfgar stopped for a moment and considered the implications of his thoughts, smiling in spite of himself as he remembered his first days in the mines of the dwarves. What a stubborn, angry youth he had been then, cheated out of his right to die on the field of honor by a grumbling dwarf who justified unasked-for compassion by labeling it â€Å"good business.† This was his fifth and final spring indentured to the dwarves in tunnels that kept his seven-foot frame continually hunched. He longed for the freedom of the open tundra, where he could stretch his arms up high to the warmth of the sun or to the intangible pull of the moon. Or lie flat on his back with his legs unbent, the ceaseless wind tickling him with its chill bite and the crystalline stars filling his mind with mystical visions of unknown horizons. And yet, for all of their inconveniences, Wulfgar had to admit that he would miss the hot drafts and constant clatter of the dwarven halls. He had clung to the brutal code of his people, which defined capture as disgrace, during the first year of his servitude, reciting the Song of Tempos as a litany of strength against the insinuation of weakness in the company of the soft, civilized southerners. Yet Bruenor was as solid as the metal he pounded. The dwarf openly professed no love for battle, but he swung his notched axe with deadly accuracy and shrugged off blows that would fell an ogre. The dwarf had been an enigma to Wulfgar in the early days of their relationship. The young barbarian was compelled to grant Bruenor a degree of respect, for Bruenor had bested him on the field of honor. Even then, with the battlelines firmly defining the two as enemies, Wulfgar had recognized a genuine and deeply-rooted affection in the eyes of the dwarf that had confused him. He and his people had come to pillage Ten-Towns, yet Bruenor’s underlying attitude seemed more the concern of a stern father than the callous perspective of a slave’s master. Wulfgar always remembered his rank in the mines, however, for Bruenor was often gruff and insulting, working Wulfgar at menial, sometimes degrading, tasks. Wulfgar’s anger had dissipated over the long months. He came to accept his penance with stoicism, heeding Bruenor’s commands without question or complaint. Gradually, conditions had improved. Bruenor had taught him to work the forge, and later, to craft the metal into fine weapons and tools. And finally, on a day that Wulfgar would never forget, he had been given his own forge and anvil where he could work in solitude and without supervision – though Bruenor often stuck his head in to grumble over an inexact strike or to spout out a few pointers. More than the degree of freedom, though, the small workshop had restored Wulfgar’s pride. Since the first time he lifted the smithy hammer he called his own, the methodical stoicism of a servant had been replaced by the eagerness and meticulous devotion of a true craftsman. The barbarian found himself fretting over the smallest burr, sometimes reworking an entire piece to correct a slight imperfection. Wulfgar was pleased about this change in his perspective, viewing it as an attribute that might serve him well in the future, though he didn’t as yet understand how. Bruenor called it â€Å"character.† The work paid dividends physically as well. Chopping stone and pounding metal had corded the barbarian’s muscles, redefining the gangly frame of his youth into a hardened girth of unrivaled strength. And he possessed great stamina, for the tempo of the tireless dwarves had strengthened his heart and stretched his lungs to new limits. Wulfgar bit his lip in shame as he vividly remembered his first conscious thought after the Battle of Bryn Shander. He had vowed to pay Bruenor back in blood as soon as he had fulfilled the terms of his indenture. He understood now, to his own amazement, that he had become a better man under the tutelage of Bruenor Battlehammer, and the mere thought of raising a weapon against the dwarf sickened him. He turned his sudden emotion into motion, slamming his hammer against the iron, flattening its incredibly hard head more and more into the semblance of a blade. This piece would make a fine sword. Bruenor would be pleased. How to cite The Crystal Shard 9. No More a Boy, Essay examples

Case Study of Fedex and UPS free essay sample

The location could not have been more appropriate. China was shaping up to be the world’s most significant market for air cargo, and Yan Yuanyuan, director general of China’s General Administration of Civil Aviation, had just announced that China would be opening up its air cargo market to an even greater degree. The major global cargo companies had been picking up their level of investment in China and were poised for growth: FedEx Corp. had just begun construction of a major regional hub in Guangzhou and already had over 200 Chinese cities in its international network, and United Parcel Service of America, Inc. (UPS), was just completing a new logistics hub in Shanghai and had recently begun domestic Chinese express package services. The question on the minds of many was which of these two cargo giants was going to make the most of this opportunity. Spurred in part by entry into the World Trade Organization in 2001, growth in trade with China had accelerated and the need for cargo shipment and logistics support had skyrocketed. On June 18, 2004, the United States and China reached a landmark air-transportation agreement that quintupled the number of commercial cargo flights between the two countries. The agreement also allowed for the establishment of air-cargo hubs in China and landing rights for commercial airlines at any available airport. The pact represented the most dramatic liberalization of air traffic in the history of the two nations.  Ã‚  had been quicker to seize the new opportunities this agreement presented. By year-end 2005, it operated more all-cargo flights to China than any other airline. During 2005, the company launched the express industry’s first direct service to China (from Europe). In January of 2006, FedEx announced that it would buy out the remaining 50% of a Chinese joint venture started in 1999 with local carrier Tianjin Datian W. Group. Upon closing that deal, FedEx would employ more than 6,000 people in China. At the announcement of the buyout, Frederick W. Smith, chair, president, and CEO of FedEx, said: â€Å"China is changing the world’s economic landscape. This strategic investment in the long-term growth of China will broaden This case was prepared by Associate Professor Marc Lipson, Robert F. Bruner, and Sean Carr. It was written as a basis for class discussion rather than to illustrate effective or ineffective handling of an administrative situation. Copyright ? 2009 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved. To order copies, send an e-mail to [emailprotected]  com. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means— electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Darden School Foundation. -2- UV2561 and deepen our relationship by improving access to important markets, fueling economic development for years to come. â € 1 While UPS currently lagged behind FedEx in the Chinese market, it was still the world’s largest package-delivery company and the dominant parcel carrier in the United States. UPS was the first carrier in the industry to offer nonstop service from the United States to China. It had recently completed a partner buyout of its own, acquiring full control of an express delivery service in China. While not the dominant player in China, it was dominant globally. According to UPS Chief Financial Officer D. Scott Davis, â€Å"Our industry is critical to international trade, our position in this industry is strong, and we have a track record of delivering exceptional financial results. †2 With the continued maturing of the U.S. package-delivery segment, the international markets—and especially China—became a battleground for the two package-delivery giants. FedEx had virtually invented customer logistical management and was widely perceived as innovative, entrepreneurial, and an operational leader. Historically, UPS had a reputation for being big, bureaucratic, and an industry follower, but â€Å"Big Brown,† so called for its iconic truc ks and uniforms, was aggressively shedding its plodding image as it too became an innovator and a tenacious adversary. UPS had recently undergone a major image overhaul and was repositioning itself as a leading provider of logistics and supply-chain management services. As these two companies positioned themselves to seize the growth opportunities presented by the Chinese market, the central question was which of these companies would best convert these opportunities into wealth for investors. Both companies made financial performance a part of their mission—what FedEx called â€Å"superior financial returns† and UPS called â€Å"long-term competitive returns. †3 Since the business models of the two companies had largely converged, with FedEx boosting ground capabilities and UPS boosting air capacity, success would hinge on execution, particularly financial execution. FedEx Corporation FedEx first took form as Smith’s undergraduate term paper for a Yale University economics class. Smith’s strategy dictated that FedEx would purchase the planes that it required to transport packages, unlike other competitors, which used the cargo space available on passenger airlines. In addition to using his own planes, Smith’s key innovation was a hub-andspoke distribution pattern, which permitted cheaper and faster service to more locations than his competitors could offer. In 1971, Smith invested his $4 million inheritance, and raised $91 million in venture capital to launch the firm—the largest venture-capital start-up at the time. 1 â€Å"FedEx Express to Acquire Express Business of Chinese Transportation Company DTW Group,† FedEx press release, January 25, 2006. 2 UPS annual report, 2005. 3UPS and FedEx annual reports, 2005. -3- UV2561. In 1973, on the first night of continuous operation, 389 FedEx employees delivered 186 packages overnight to 25 U. S. cities. In those early years, FedEx, then known as Federal Express Corporation, experienced severe losses, and Smith was nearly ousted from his chair position. By 1976, FedEx finally saw a modest profit of $3. 6 million on an average daily volume of 19,000 packages. Through the rest of the 1970s, FedEx continued to grow, and in 1981, FedEx generated more revenue than any other U.S. air-delivery company. By 1981, competition in the industry had started to rise. Emery Air Freight began to imitate FedEx’s hub system and to acquire airplanes, and UPS began to move into the overnightair market. The U. S. Postal Service (USPS) positioned its overnight letter at half the price of FedEx’s, but quality problems and FedEx’s â€Å"absolutely positively overnight† ad campaign quelled that potential threat. In 1983, FedEx reached $1 billion in revenues and seemed poised to own the market for express delivery. During the 1990s, FedEx proved itself as an operational leader, even receiving the prestigious Malcolm Baldrige National Quality Award from the President of the United States. FedEx was the first company ever to win in the service category. Part of this success could be attributed to deregulation and to operational strategy, but credit could also be given to FedEx’s philosophy of â€Å"People-Service-Profit,† a slogan that reflected its emphasis on customer focus, total quality management, and employee participation. Extensive attitude surveying, a promotefrom-within policy, effective grievance procedures that sometimes resulted in a chat with Smith himself, and an emphasis on personal responsibility and initiative not only earned FedEx a reputation as a great place to work, but also helped to keep the firm largely free of unions. By the end of 2005, FedEx had $20,404 million in assets and net income of $1,449 million on revenue of $29,363 million. The company delivered to 220 countries through an infrastructure consisting of 260,000 employees, 51,500 drop-off locations, 677 aircraft, and 70,000 vehicles and trailers. The company planned to expand its Indianapolis air hub by more than 30% by 2008. FedEx’s Kinko’s division was the leading provider of document solutions with 1,400 locations in 11 countries. Exhibit 1 provides FedEx’s financial and analytical ratios. United Parcel Service of America, Inc. Founded in 1907, UPS was the largest package-delivery company in the world. Consolidated parcel delivery, both on the ground and through the air, was the company’s primary business, although increasingly the company offered more specialized transportation and logistics services. UPS had its roots in Seattle, Washington, where 19-year-old Jim Casey started a bicycle-messenger service called American Messenger Company. After merging with a rival firm, Motorcycle Delivery Company, the company focused on department-store deliveries, and that remained true until the 1940s. Renamed United Parcel Service of America, UPS started an air-delivery service in 1929 by putting packages on commercial passenger planes. The company entered its strongest period of growth during the post–World War II economic boom; by 1975, it-4- UV2561 had reached a milestone when it could promise package delivery to every address in the continental United States. The key to the success of UPS, later headquartered in Atlanta, Georgia, was efficiency. According to BusinessWeek, â€Å"Every route is timed down to the traffic light. Each vehicle was engineered to exacting specifications. And the drivers †¦ endure a daily routine calibrated down to the minute. †4 But this deman d for machinelike precision met with resistance by UPS’s heavily unionized labor force.