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C148341 - Digby-Case Analysis-SWOT

The document is a final case analysis for United Parcel Service, Inc. (UPS) conducted by a team as part of a strategic management course. It outlines UPS's strengths, such as strong brand recognition and an extensive global network, as well as weaknesses like high operating costs and dependence on the U.S. market. Additionally, it discusses opportunities in e-commerce growth and emerging markets, along with threats from intense competition and regulatory changes.

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vijay raj
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21 views4 pages

C148341 - Digby-Case Analysis-SWOT

The document is a final case analysis for United Parcel Service, Inc. (UPS) conducted by a team as part of a strategic management course. It outlines UPS's strengths, such as strong brand recognition and an extensive global network, as well as weaknesses like high operating costs and dependence on the U.S. market. Additionally, it discusses opportunities in e-commerce growth and emerging markets, along with threats from intense competition and regulatory changes.

Uploaded by

vijay raj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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United Parcel Service, Inc.

BUAD 6900:001

Strategic Management Capstone

Spring 2024

Final Case Analysis

Team: Digby

Team Members:

Gokul Babu Hariharan Chandiran


Viknesvaran Coimbatore Kadhirvel
Vijayaraj Kadaieswarar Ramasamy
Vetrivel Kumar
Jabadurai Martin
Logisa Nithyanandam
Nandhika Sampathkumar
Tharunkumar Saravanamoorthy
Ramapriya Srinivasan
Adharsh Surendran
Strengths:

 Strong brand recognition: With a reputation for dependability and


efficiency, UPS is a well-known, globally recognized brand. Due to its
well-known brand, the business has been able to draw in and keep both
domestic and foreign clients. With a brand worth of US$38.5 billion, UPS
continues to be the most valuable logistics brand in the world.
 Extensive global network: UPS serves clients in more than 220 countries
and territories with to its vast international network, which includes a
sizable fleet of automobiles, planes, and hubs. With its vast network, UPS
has a reach and scale edge over its competitors.
 Technological innovation: To improve customer satisfaction, increase
efficiency, and streamline operations, UPS has continuously made
technological investments. Advanced tracking systems, route
optimization software, and warehouse automation are just a few of the
innovations that have given UPS a competitive advantage in the market.
 Diverse service offerings: UPS provides a variety of services, such as
package delivery, supply chain management, and freight forwarding, to
meet the needs of its diverse clientele. UPS is able to handle a wide range
of clients and sectors because to its diversity of services.

Weaknesses:

 High operating costs: Fuel, labour, and maintenance expenditures are


three major operational costs in the logistics and package delivery sector.
These expenses may have a detrimental effect on UPS's profit margins
and make it challenging for the business to keep up competitive prices.
 Dependence on the U.S. market: Despite UPS's worldwide reach, a
sizable amount of company income originates from the country's home
market. Due to its reliance on a single market, the business is susceptible
to changes in the US economy, in regulations, and from competition in
the domestic market.
 Competition: FedEx, DHL, and USPS are just a few of the significant
companies in the logistics and package delivery space with whom UPS
must contend. Threats also come from rising e-commerce platforms and
smaller regional carriers with their own delivery networks. Price wars, a
loss of market share, and pressure to constantly innovate and improve
services are all possible outcomes of this competition.
 Regulatory challenges: Due to numerous international, national, and
municipal laws and regulations, UPS operates in a highly regulated
environment. Changes in regulations, especially those pertaining to the
environment and labour, can have a big effect on a company's operations
and drive-up expenses.

Opportunities
 E-commerce growth: UPS has a great chance to increase its services and
market share as e-commerce continues to rise. With more people making
purchases online, there will be a greater need for trustworthy and
effective package delivery services.
 Emerging markets: Growing operations in these regions, especially in
Latin America, Africa, and Asia, can provide fresh revenue streams and
diversity. These markets have a fast-expanding e-commerce sector, a
burgeoning middle class, and rising internet usage.
 Expansion of logistics and supply chain services: To serve a wider range
of clients and sectors, UPS can expand its supply chain and logistics
management services. This can entail providing specialized services for
sectors like healthcare, technology, and the automobile industry—all of
which depend heavily on effective logistics management.
 Strategic partnerships and acquisitions: UPS can broaden its service
portfolio, boost its global presence, and diversify its company by forming
strategic alliances or purchasing businesses in related industries.
Additionally, this may improve UPS's ability to compete in the market.

Threats
 Intense competition: UPS is up against national postal services like USPS
as well as other international logistics firms like FedEx and DHL. In
addition, UPS faces further competitive pressure from the emergence of
e-commerce behemoths like Amazon, who have built their own delivery
networks. Price wars, a loss of market share, and the requirement for
ongoing innovation might result from this competition.
 Regulatory changes: Several international, national, and municipal rules
apply to the logistics and package delivery sector. Modifications to these
rules, especially those pertaining to labour, environmental, and
transportation laws, may have a substantial effect on UPS's operations,
raise expenses, and provide compliance issues.
 Labor issues: Being a major employer with a sizable, unionized staff,
UPS is vulnerable to possible labour disputes, strikes, and higher labour
expenses. The company's reputation may be damaged, operations may be
disrupted, and customer satisfaction may be impacted.
 Pandemics and natural disasters: Hurricanes, earthquakes, floods, and
other natural calamities pose a risk to UPS's operations, as does the
COVID-19 pandemic. These occurrences may cause operational
disruptions, have an impact on the company's supply chain, raise
expenses, and lower customer satisfaction.

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