United Parcel Service
“We run the tightest ship in the shipping business”
“To guide the company's efforts to provide responsible, ethical business behavior and manage business conduct to achieve and maintain compliance with all applicable regulations and policies for all aspects of UPS business worldwide, including all wholly owned subsidiaries.”
UPS is a global package delivery business that specializes in not only managing the movement of goods, but the information and funds that moves with those goods in more than 200 countries and territories worldwide. UPS’s target market is primarily U.S. companies that ship business to business via ground delivery and whose delivery time is not urgent. Major customers are manufacturers that ship directly to retailers and online businesses that ship goods to private households.
UPS is a large C corporation, a legal business entity that is separate from its owners and managers. It’s unbounded in terms of shareholders and dividend income is taxed at corporate and personal shareholder levels. The benefit of UPS taking on this form of organization is that the company has limited liability, transferable ownership, will have continuous existence, and has easier access to resources. The disadvantage to this type of organization is that it is expensive to set up, they are usually closely regulated, and taxation is doubled therefore extensive record keeping is essential.
In 1907, Jim E. Casey borrowed $100 from a friend and started this Seattle based private messenger and delivery services company. From there his motivation and innovation turned into one of the largest package delivery companies in the world that delivers more than 15.1 million packages daily to 7.9 million customers in more than 200 countries and territories all over the globe. UPS has had 103 years to perfect their business plan.
There are numerous strategies and values that have pulled UPS through the years and allowed the company to maintain that competitive edge. UPS is a household name and oftentimes a business’s primary choice in delivery needs due to its extensive U.S. and European ground network operations which makes it easy for their delivery trucks to access every address in the U.S. and Europe from one of hundreds strategically positioned hub locations. The hub design and locations were the end result of a known issue of not having the proper coverage to efficiently reach businesses and households in remote locations in a timely manner. UPS has a definite stability strategy that aims to continue doing what they have been doing, but to continue to expand its number of markets in new developing markets. American businesses are importing more goods due to the lower cost to obtain the finished product/materials and UPS has applied one of their strategies from not only going global, but recently focusing on penetrating Latin America. Latin America’s market volume expanded by 50% early this year and a major problem for them was that their market was growing so rapidly that their delivery companies could no longer keep up with their booming business. Look who jumped in to save the day, why UPS!
Not only does UPS have to continually expand, but they also have to be updated with what their competitors are doing. The transportation industry is highly competitive and UPS’s three top competitors are Deutsche Post AG (DHL), United States Postal Service (USPS), and FedEx. All three companies offer similar, if not the exact same services, but pricing and availability depend on regions. I believe the competitive advantage UPS has over these three companies is that they listen to what their customers want and then they deliver exactly that. The initial competitive advantage that credited UPS’s early and continual success is that they always focus on courtesy to their customers, maintain low rates, and their round the clock service. UPS has probably at one...
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