Ups Swot Analysis

Topics: United Parcel Service, FedEx, Package delivery Pages: 11 (3882 words) Published: September 20, 2009
Brief history on UPS
UPS still relies on its chocolate-colored trucks, but United Parcel Service (UPS) aims to be more than a plain-vanilla delivery business. Seattle teens, Jim Casey and Claude Ryan started American Messenger Company, a phone message service, in 1907. They were soon making small-parcel deliveries for local department stores and in 1913 changed the company's name to Merchants Parcel Delivery. Service expanded outside of Seattle in 1919 when Merchants Parcel bought Oakland, California-based Motor Parcel Delivery. By 1930, the company, which had been renamed United Parcel Service, served residents in New York City (its headquarters from 1930 to 1975); Newark, New Jersey; and Greenwich, Connecticut. Starting with Los Angeles in 1952, UPS grew in relative obscurity as it expanded westward from the east coast and eastward from the west. The company was noticed nationally in 1972 when the US Postal Service referred to UPS as a competitor. In 1975 UPS crossed the border by serving Canada, and in 1976 it expanded to West Germany. It started air express delivery in Louisville, Kentucky, in the late 1970s. By 1982 UPS Blue Label Air Service (now UPS 2nd Day Air) guaranteed 48-hour delivery anywhere on the mainland and Oahu, Hawaii. Overnight service (UPS Next Day Air) began in 1982 and became nationwide by 1985. Moving to Atlanta in 1991, the company began to focus on customer service. As part of a technology revamp, UPS created the electronic clipboard used by drivers to track packages and digitize signatures. UPS broadened its services and expanded geographically to better compete with rival FedEx and the U.S. Postal Service. In 2000, the company formed its e-Ventures unit to develop subsidiaries focused on supporting e-commerce businesses. In 2001 UPS bought Mail Boxes Etc., a franchiser of stores that offer mail, packing, and shipping services. It also acquired global logistics management provider Fritz Companies, which was renamed UPS Freight Services, and expanded its financial services by buying First International Bancorp. The company also offers supply chain management services. Managers, employees, retirees, and the founders' families own 90% of UPS and control 99% of the voting power.

Present Day UPS

In the society in which we live today, it is important for companies to have a comparative edge over their competition to survive in business. The main competition that UPS is facing today is FedEx. To be able to compete with FedEx, UPS must employ all of its forces to keep up with technology. UPS has paved the way in providing their customers with the latest technology to help with services. One thing that customers appreciate about UPS is the ease of use and the quickness of their service. J.D. Power and Associates ranked UPS highest in customer satisfaction. “Thirteen million times a day, customers place their trust in UPS – along with their packages – because they know they can count on our reliability,” said Kurt Kuehn, senior vice president UPS Worldwide Sales and Marketing. UPS is the world’s largest package delivery company and a global leader in supply chain services.

The amount of technology that UPS uses involves a mass network of people and computers. According to their website, UPS has 3,600 technology employees. Those 3,600 employees use 260,000 computers. The main website of UPS has an average of 115 million hits during a single business day, with an average of 9.1 million tracking request. In the year of 2003 the peak number of hits that their website was 209 million. UPS has 2,445 networks in its Global Telecommunications Network, with an average of 3.7 million packets being tracked daily using its network.

One thing that is UPS has done right over the past 90 years is spend a tremendous amount of money on technology to provide their customers with new inventions. During the past decade UPS has poured more than $1 billion a year into technology...
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