Problem 1: Why did UPS stay away from a price war when it came to responding to FedEx's encroachment to its residential services (i.e., home delivery) business?
Problem 2: What kind of market signal can FedEx read from UPS's labor relations chief Chris Maloney's statement: "[T]he closer we get to the expiration of the [Teamsters'] contract, the most customers are going to be concerned ... and we don't know if we'll get those packages back"?
Problem 3: What kind of signal did FedEx read from UPS's claim that Sunday delivery was too small a market to be profitable?
Problem 4: Despite making losses in its European operations, why did FedEx make a publicized re-entry into the business in 1999 with its expanded intra-European flight schedule and its new overnight delivery service (i.e., EuroOne)?
Problem 5: What market signal is FedEx trying to give here?