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UPS For 52000
Transcript of UPS For 52000
The strategy of the UPS Enterprise is to create value, transform, and invest to grow.
Four key facts stand out:
• Online Shopping Websites
• Computer Software
(tracking & scanning)
• Health Care Facilities
• Raw Materials (boxes, tape, & packing supplies)
• Fuel Companies
• Transportation Equipment
• Locations & Buildings
• United States Postal Service
• DHL Express
• International Shipping
1. Air Cargo
4. UPS Store
• Mail Innovations
• Supply Chain Solutions
• Capital Corporation
• Business People
• Online Shoppers
• White Collar
• International Trade
It is important for UPS to make a move for increased leverage while the opportunity still remains.
The UPS Enterprise uses
a We Logistics slogan.
UPS strategy is to demonstrate how the power of logistics can create a competitive advantage for its customers. In doing so UPS does an effective job in making sure they create value for customers utilizing UPS services.
The major strength of UPS is its US ground network, which is six times larger than that of its leading competitor FedEx.
There remains room for improvement in express or overnight delivery.
Currently UPS has more enhanced operating margin in air deliveries when compared to their leading competitor FedEx. Therefore they are capable of gaining control in the overnight or express delivery market.
1. International Position:
2. Express Delivery:
The two largest areas for improvement in the UPS Enterprise are:
Potential for UPS to become a leader in this market due to competing US freight transportation companies not currently having a dominate global position.
Ability to control this market due to much better operating margins in air deliveries than other leading competitors.
UPS is always looking to better their company.
Some ways that they do this are:
Serve small businesses
UPS TOWS Matrix
• Ground network
• Value for customers
• Technology (ORION)
• International position
• UPS Store availability
• Express delivery
• New market sectors/International markets
• Joint ventures
• Limited competitors
• Express delivery pricing
• Competitors working in global markets
• Increase in oil/gas prices (fossil fuels)
• UPS’s solid ground network can be beneficial in helping them to expand into new market sectors/international markets.
• UPS’s vast ground network and value for customers makes them marketable for joint ventures.
• Increase leverage in global market to improve international position (time sensitive).
• Increase UPS Store/drop box locations to break into new market sectors (possible joint venture).
• Amplified value for customers can help to eliminate the threat of competitor’s express delivery prices.
• ORION technology increases efficiency in driving routes making UPS less dependent on fossil fuels.
• Increase international position currently while competitors have yet to completely leverage the global network.
• FedEx’s control over express delivery exhibitions a need for UPS to become more competitive in express delivery pricing.
• Increase availability of services to household customers.
• Expansion of the international shipping sector.
• Turning over a new leaf in
UPS currently stands at a weak international position.
There is no competing company currently controlling this market.
The profit margin for international shipping is currently the highest in UPS
An Example for UPS Rewards Program
• Building a rewards program for household customers.