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Ups Case Study

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Ups Case Study
1a.describe UPS
United Parcel Service of America, Inc., is an American global package delivery company -founded in 1907 -headquartered in Sandy Springs, Georgia, USA. -It delivers more than 15 million packages a day -to 6.1 million customers -in more than 220 countries

1a. describe UPS
World most admired companies (Fortune, 2013) Rank in delivery-1

1a.describe UPS
UPS product: Transportation services (domestic and international package delivery) +specialized transportation +logistics +financial services

1b. Describe UPS business environment
SWOT
Strengths
Strong market position Brand equity Strong revenue growth Broad portfolio of services Innovations Customer loyalty & relationships THRE

Opportunity
Geographical expansion Expending Asian market Online shopping and distribution Acquisition of TNT

Weaknesses
Decline in operating efficiency Lack of leveraging long-run innovative solutions High prices

Threats volatile oil prices Economic slowdown Fluctuations in exchange rate labor issues E-substitutions competition

1b. Describe UPS business environment
UPS main competitors • 1.United States Postal Service 2.Deutsche Post 3.FedEx • 4.Canada Post 5. DHL

2.UPS strategy for online business and its business model
HISTORY of IT DEVELOPMENT: From 1986, while Oz Nelson became CEO, he pushed the firm to invest heavily in IT to develop the capability not just to track packages but to offer a wide range of services . with the purpose: - to add value to customers, -to achieve more efficiency and flexibility - and to increase market share and profits. The onset of globalization and the increase of cross border activity motivated UPS to invest heavily in IT. To date the company invests approximately 1 billion dollars per year in IT (Ross & Weill, 2011). Initially, ”..Tracking was the Holy Grail” and applications for tracking system became the first innovations. DIAD- one of the first important enterprise applications. (it captured a
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