United Parcel Services 2

United Parcel Services: 

Aby Thuy Shafeek Povilas Praveen United Parcel Services

Introduction : 

Introduction 1907 – UPS Founded

Market Structure : 

UPS trades in the national and global logistics market which itself is a Oligopoly market type In an oligopoly companies are locked within a competitive market Some focus on price, whilst others focus on flexibility of parcel size and speed. “ B utler ” image of the logistics market The main rivals in this oligopoly would be DHL and FedEx Market Structure 1929 – World’s First Air Express Service

Strategic Groups : 

Strategic Groups 1966 – Begins use of rail

Financial Statistics: 

Financial Statistics Over the past six years, UPS has: Completed a $1 billion expansion of its high-tech UPS Worldport (R) air hub Opened a new air freight hub and a Global Operations Center for the UPS Airlines Began operations in a new Centennial ground hub Doubled the size of its supply chain and logistics campus. Assembled the "youngest" fleet of aircraft in the cargo industry UPS shows positive sales growth rate of 8% compared to the last year and 3% growth rate in 5 year annual average. 1977 – First courier to serve every US address

Industry Life Cycle : 

Industry Life Cycle 1987 – Purchased first 757 aircraft

Porter’s 5 Forces: 

Porter’s 5 Forces 1990 – Introduces 10.30 am delivery guarantee

SWOT : 

SWOT 1992 - Delivers in 200 countries & territories

PESTEL: 

Political Current debt crisis Recent incidents of terrorist attacks Economical Global recession Fluctuating interest rates Unstable exchange rates Rise in unemployment Uncertainty in the stock market Social Demand in the labour market Aging population Changes in demographics Technological Possibility of new product/service that could replace parcel services Rapid advancement in technology Opportunity to expand and develop via web Environmental Weather conditions Flight cancellations Delays imposed by local airports. National Emergencies Going ‘green’ Legal Operating in multiple countries International Trade Laws Employee Rights & Employment Law Competition Law PESTEL 1997 – Staff strike shuts down UPS

Corporate & Generic Strategies : 

More worldwide expansion Build stronger relationship with existing customers worldwide Understand customer behaviour and need Make more partnerships globally Better supply chain solutions Creating new technology Making delivery easier and creating new services Sustainability Corporate & Generic Strategies 1998 – UPS Capital is established

Ansoff’s Matrix: 

Ansoff’s Matrix 1992 – UPS acquires Challenge Air

Competitive Advantage : 

Butler style service Q uality of service: On time delivery Discreet collection and deliveries Guarantee of product on delivery UPS also have a mailing service similar to the set-up of USPS P lacing focus on going “Green ” Competitive Advantage 1999 – UPS becomes a public ltd. company

Stakeholder Analysis : 

Directors Shareholders Investors G overnment Customers Unions Stakeholder Analysis 2003 – UPS unveils a new logo

Suggestions/Conclusion : 

Is UPS meeting stakeholder needs? Expansion Share Prices High Quality Service Going Green Customer Focused Suggestions! Outsourcing vans (advertising) Removals F1 Sponsorship Hire out private jets Vertical Integration Suggestions/Conclusion 2007 – UPS celebrates it’s 100 th anniversary

Questions?: 

Questions?

Bibliography: 

Bibliography