FedEx acquiring Kinko's was perhaps a surprise to some. Given the success of UPS, I believe it was in the cards for some time. FedEx desperately need to refresh their strategy and brand to get back into growth mode. Perhaps Kinko's will help in that respect. Of course, the Kinko's brand does carry a significant amount of brand equity. FedEx could - and probably will - take advantage of that.
The FedEx brand is strong. In fact, the brand is probably holding the company together. That's not going to last forever. The real challenge is to stay relevant in a market that is becoming increasingly competitive. FedEx defined the express transportation category - but there's no more room for growth in express mail (at least not in the US). The down economy is not helping and UPS new brand is really making it difficult for FedEx to stand out in the market. The "What can brown do for you" campaign has been very sucessful for UPS and I've not seen an answer from FedEx, yet.
How can FedEx position itself towards UPS? Since UPS is a giant with significant resources, I think the answer may be that FedEx needs to diversify its business. New lines of business must be built and the brand extended to areas where FedEx can solve business problems for their small and medium sized customers. Naturally, a new strategy means a new brand identity. This will be interesting!