Question

1. U.S company - UPS 2. Research UPS and the markets in which it competes in 3. prepare six paper page for your client.

Answer 1

1. U.S company - UPS 2. Research UPS and the markets in which it competes in 3. prepare six paper page for your client.

Answer-

United Parcel Service (UPS) is an American multinational package delivery and supply chain management company. The global logistics company is headquartered in the U.S. city of Sandy Springs, Georgia, which is a part of the Greater Atlanta metropolitan area.

United Parcel Service, Inc. (“UPS”) was founded in 1907 as a private messenger and delivery service in Seattle, Washington. Today, UPS is the world's largest package delivery company, a leader in the U.S. less-than-truckload industry and the premier provider of global supply chain management solutions.

(UPS) and FedEx Corp. (FDX) are two leading delivery services companies and main competitors to each other, at least in the public eye. ... While UPS is wildly known for its domestic ground package delivery, FedEx is mostly recognized for its worldwide air express freight. UPS delivers more than 15 million packages a day to 6.1 million customers.

While USPS tends to have the best small package rates, there are a few scenarios where UPS and FedEx are cheaper. Ground package faster than USPS, and the delivery days are guaranteed. Another benefit to UPS and FedEx is that they can ship packages that weigh up to 150-lbs.

Though the core business of UPS is logistics the business operates in a number if related domains through their subsidiaries UPS Airlines which is a cargo airline, Freight trucks under UPS Freight and packing and shipping operations under UPS Store. The parcel services company has operations in Asia Pacific, Africa, Europe, and the Caribbean.

Through a host of subsidiaries, UPS has made itself capable of handling end to end supply chain management and logistics. The largest parcel services company in the world, UPS employs around 444,000 people with around 362,000 people in the US and 84,000 outside. The company registered an annual turnover of USD 66 billion.

Strengths of United Parcel Service

Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. The following are the strengths of United Parcel Service :

• Network: United Parcel Services has been able to reach out to most corners of the world through its widespread network and a long list of subsidiaries making it the world’s largest logistics company. This network and the direct control that UPS has over it makes it one of the strongest players in this industry.
• Target segment: Quite unlike its competitors who do not have a clear target segment, UPS primarily targets business customers. In fact, the company has a lot of tie-ups with business and acts as its logistics partner. This helps them own a more sustainable business model and focus on the limited set of customers while getting more business value.
• Technology: UPS is one of the biggest spenders on technology and the company invests around USD 1 billion on technology annually, with around 4700 employees. The key technology areas include supply chain management, customer relationship management, and order tracking a delivery.
• Streamlining of processes: UPS has always focused on streamlining processes that are focused on the customer. The processes are re-engineered continuously in accordance with changing customer behavior patterns, technology trends, and logistics. Some of the processes where the company has been focusing on include order tracking, customs clearance, customer engagement and invoicing. The processes are checked thoroughly from end to end and re-engineered on a regular basis.
• High customer engagement: UPS provides facilities for customers to avail of all the services that they offer electronically. Their online platform helps the customer track the order, interact with a customer service executive round the clock through a toll-free number or understand order status through an integrated voice response.
• Smart Logistics: UPS has to its credit the International Shipment Processing System which uses techniques like smart scanning, real-time delivery tracking, order management, logistics planning etc.
• Focus on supply chain and freight: UPS acquired Coyote recently which in turn has helped the company to ramp up their operations in the supply chain domain and also improve their freight management strategies.

Weaknesses of United Parcel Service

Weaknesses are used to refer to areas where the business or the brand needs improvement.   Some of the key weaknesses of UPS are:

• Poor revenue management: With more and more customers choosing to spend on online shopping, the revenues of United Parcel Services have dipped. The capital spending had to be increased and the investment in infrastructure had to be improved. This poor revenue management has been the major weakness of United Parcel Services.
• Management of traffic: United Parcel Services has been facing a lot of challenges in managing traffic. As the company expanded they faced new challenges in tracking as well as invoicing of orders. The margins from logistics were reduced significantly because of the spending on traffic management.
• FedEx: The biggest competition for United Parcel Services has always been FedEx. Currently, FedEx has around 49 % market share of the express market and UPS has only 36 % of the express market. UPS has always been trying to compete with their nearest competitor and to secure a higher market share which in turn is diverting their interest from other areas.

Opportunities for United Parcel Service

Opportunities refer to those avenues in the environment that surrounds the business on which it can capitalize to increase its returns. Some of the opportunities include:

• New and emerging ideas: Logistics is a very innovative market and there are a number of emerging trends such as logistics outsourcing, crowdsourcing, RFID, and 3 D printing. Each of these emerging areas may be creating a scope for new markets.

Threats for United Parcel Service

Threats are those factors in the environment which can be detrimental to the growth of the business. Some of the threats include:

• Competition The main competitors of United Parcel Services are FedEx, Gati, United States Postal Services, DHL, and Canada Post.

United Parcel Service is commonly known as UPS and is a public limited company of American origins. It is associated with the Transportation & Logistics industry and deals in freight and courier services. UPS was founded in the year 1907, 28^th August by its founder James E Casey. Some of its competitors in the United States are as follows-

• United States Postal Service or USPS
• LSO
• OnTrac
• FedEx

Other international competitors are

• India Post
• Japan Post
• Royal Mail
• Deutsche Post
• TransForce

Product in the Marketing Mix of UPS

UPS is a multinational corporation that delivers the package and also offers supply-chain-management solutions. It offers focused services in several segments like

• Aerospace
• Retail
• Healthcare
• Professional Services
• Industrial Manufacturing
• Consumer Services

UPS manages its operations via three segments

• S Domestic Package- It includes delivery of packages, documents, and letters in a definite time frame in the United States. These services come with the money back guarantee if not delivered within stipulated time-frame.
• International Package – These services include shipments to and from the United States and also fully out of United States like Standard, Express Saver, Expedited, Express, Express Plus and Express Critical. These services are dependent on the weight of package and urgency of delivery.
• Supply Chain & Freight – Its forwarding and logistics operation unit include supply-chain design, freight distribution and forwarding, management and execution, consulting and mail services, and customs brokerage. UPS freight provides TL or Truckload services and LTL or less than truckload services only in North America. Its other business operations include UPS Capital and UPS Store

UPS also offers value-added-services like shipping solutions, technical support, electronic billing, package tracking via online systems, pick-up services, and delivery services from door to door.

Place in the Marketing Mix of UPS

UPS is a global company with its headquarters based at Sandy Springs in Georgia of United States. It started its journey from Seattle to Washington and with time has spread its network to include countries in most parts of the world like Germany, Canada, United Kingdom, India, China, and Japan. Forwarding and logistic unit of UPS offer services in nearly one hundred and seventy-five countries whereas its International Package unit include operations and deliveries in nearly two hundred and twenty countries of the world. UPS Airlines offers its services in nearly two hundred countries. Important hubs include Philadelphia, Illinois, and Louisville in the United States, Cologne in Germany and Hong Kong in China.

UPS has a strong and powerful distribution network spread across more than two hundred and twenty countries. It includes services of nine hundred and fifty field and five central stock locations. These handle shipping, packaging, inventory, and fulfillment of critical orders. In order to aid its logistics service, it has acquired warehousing facilities of 35 million square-feet. UPS manages its operations via several transportations.

It utilizes package cars of different size and designs, depending on its package volume and route. Besides large vans, UPS also uses minivans for smaller routes. From the year 2017, its fleet includes conventional-cab trucks. In the year 2008, the company started bicycle delivery by hiring personnel with bicycles in some of the states of United States.

It also has tie-ups in the United States with some railroad companies for providing intermodal transport. UPS has a fleet of two hundred and thirty-six aircraft that offers services to numerous parts of the world with its aircraft.

Efficient staffs are an integral part of any logistic company and so is the case with UPS. It employs well-trained 444,000 employees including clerks, package handlers and drivers of which 362,000 are in the United States itself with the international count being only 82,000. These help in dispersing quick and best services.

Price in the Marketing Mix of UPS

UPS is a global corporation which posted its revenues at 65.872 billion US$ and net income of 4.910 billion US$ by the end of the financial year 2017. There is stiff competition in the logistics industry and the company faces rivalry from its competitors at both national and international levels. UPS has adopted a competitive pricing policy to meet its rival companies head-on. It charges rates at par with its competitors and offers best available services so that it is assured of its customer’s loyalty.

Pricing policy of the company is dependent upon a number of factors like distance covered via transport, the dimension of the package, time of its delivery, the value of the package, the weight of the product and if any other value-added services are required.

The rates include any handling charges if incurred and also the fuel surcharges. International delivery costs more than domestic ones and if sent via shipping then the company levies premium charges. Freight Services of UPS includes higher quantity services in bulk. The base rate is calculated by adding handling charges, security fees and season surcharges with clearance charges and customs duty being levied if incurred. UPS with its official website and mobile application makes it easier for customers to pay directly.

Promotions in the Marketing Mix of UPS

UPS is an internationally acclaimed company that has set up several marketing activities to promote its brand visibility in the consumer market. Advertisement campaigns are displayed with help of newspapers, television, billboards, and magazines for brand recall. Depending on the size of an order placed UPS offers subscriptions and bulk discount schemes to its clients. Its delivery vans are in itself a means of promoting brand awareness amongst its customers as they are able to reach far and wide places.

UPS realizes the importance of social media platform and hence offers service related information via its website. Ad campaigns are also shown on its official website to increase brand awareness. The company encourages its employees to offer voluntary services as part of community activities.

UPS has made several sponsorship deals. It is the Official Logistics Partner of several athletics programs at university and college levels and since the year 2013, has also become official Logistic and Shipping Sponsor of Scuderia Ferrari. Since the year 2014, UPS has become sponsors of golf tournament The Masters. Besides this, it is the Official Express Carrier and sponsor of another golf tournament The Open Championship. The brand has appointed Lee Westwood as its brand ambassador.