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SWOT Analysis of United Parcel Service

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UPS have been around in business for over a century and have had many changes and also experienced a lot in the years they have been in business. The united parcel service (UPS) which delivers more than 15 million package a day to about 6. 1 million customers in 200 countries around the world, making it the world’s largest package delivery company. The UPS headquarter is located in Atlanta, Georgia and operates primarily in the united states with about 428,000 employees.

The mission statement is “what can brown do for you’’ emphasize the company’s ability to provide services to almost any one in the world, at any address.

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Also before the $42 billion company grew into a worldwide name it was first started as a small messenger company in 1907 by two aspiring teenager Jim Casey and Claude Ryan in settle, Washigton with just $100 dollars. And the top competitors of UPS include federal express (fed ex), DHL International and the United States Postal Services.

Section II-Strengths and Weaknesses I would consider two strengths of UPS to be global Brand and a Strong distribution network.

Two of UPS current weaknesses I would say would be perception of ground delivery instead of overnight and a heavy union presence. Strength #1- Global brand UPS is targeting a global market of producers and consumers, while making a move to become the supply chain integrator of choice in e-commerce.

UPS offer products and services that are state of the art in logistics, which I think is good because it include the use of bar codes and RFID, high speed package routing systems, and consulting services. UPS charges package prices that are in alignment with the industry and is willing to raise prices alongside FedEx. It has been able to charge fuel surcharges successfully. A sales force is maintained to reach business customers and producers crucial to UPS mission in expanding its role in logistics to become the supply chain integrator of choice.

There are 150,000 different places to access UPS, worldwide. Customers can reach them by phone, web, retail outlets, customer service centers, distribution centers and any of the drivers will pick up packages. This level of reach to customers is necessary if UPS expects to gain market share from FedEx. Strength #2- Strong distribution network The distribution network that UPS have they relied on the efficiency of its distribution system. Reliability and efficiency are the key issues in their establishment and management of freight distribution system leaning parcel.

The UPS distribution system involves three major function which are consolidation, distribution and fragmentation which I am going to break each one down with the consolidation with this it is based on the collection of parcels by the trucks that are assigned to specific routes. The distribution network function works on the hub basis it depending on the distance involved, the mode used between hubs will either be trucking or air. The trucks are used for distances less than 400 miles. The main air hub is Louisville, Kentucky which handles over 100 flights a day.

Cite this SWOT Analysis of United Parcel Service

SWOT Analysis of United Parcel Service. (2017, Mar 20). Retrieved from https://graduateway.com/swot-analysis-of-united-parcel-service/

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