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Ups Case Study

1770 words - 7 pages

General Company Introduction

UPS
United Parcel service

UPS was founded in 1907 as a messenger company in the United States and now
has grown into a $49.7 billion corporation by clearly focusing on the goal of enabling commerce around the globe.
Today UPS is a global company with one of the most
recognized and admired brands in the world.
UPS has become the world's largest package delivery company
and a leading global provider of specialized transportation and logistics services.
Every day, UPS manages the flow of goods, funds, and information
in more than 200 countries and territories worldwide.

A SWOT analysis is a measure tool to summarize a company’s internal and external aspects. By measuring the company’s strengths, weaknesses, opportunities and threats and looking for improving solutions by using the strengths and opportunities to improve on the weaknesses and take the necessary actions concerning any threats a company can survive in today’s world market.

Strengths:

Global Brand, Strong Distribution Network, Globalization, Cost Cutting and Internet commerce;

Globalization & network; UPS has set their name, is known all over the world and expanding at a rapid pace.
Cost cutting; Technology plays a significant part in package delivery companies capability to assist customers in cutting their inventories which UPS owns. The UPS system processes packages using advanced information technology and are transported by the companies’ own aircraft, fleet or delivery vehicle so UPS does not rely on other companies.
Internet commerce; which is in a huge need for shipping and UPS offers the ability to track all packages around the world.

Weaknesses:
Perception of Ground Delivery instead of Overnight, Heavy Union presence;

Because DHL is more integrated in European countries, UPS suffers losses from costs of transporting packages into Europe. When planes, fleets or other delivery vehicles cannot be used fully, the turnover will not reach up to cover the sufficient costs.

Opportunities:
Expansion of online shopping, Emergence of international middle class;

With technological innovations generating higher productivity, the future for package delivery remains bright. Moreover, with attention being given to the challenges of the supply chain management, package delivery companies can apply their technological expertise in developing additional business opportunities.

Threats:
Increasing Fuel Costs, Competitve Landscape (DHL, FedEx), Potentially slowing global economy;

FedEx is together with UPS the largest leader in the world market and the main competitor in using technology to facilitate cost cutting efforts. Another competitor is DHL which is expanding worldwide as well. The war in Iran has a huge influence on the transportation companies. The gasoline prices that are rising by the day are of great influence on UPS’ expenses which will be...

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