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While these technologies will erode the revenues FedEx and UPS's enjoy, they will not be able to displace the market entirely. The overnight letter delivery business will survive as long as consumers have important documents to send and communications technologies do not offer 100 percent reliability. Further, the complexities and costs of networked technologies will not be able to completely replace the simplicity and inexpensiveness of a packing slip. Besides these, there are no other forms of substitutes that can match the efficiency and effectiveness of FedEx and UPS.
? Customers bargaining power: FedEx and UPS face significant competitive pressure from corporate buyers in the overnight delivery market...
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