Industrial Analysis Paper

Industrial Analysis

UPS, the largest logistics firm, operates in the courier and freight delivery industry. The company has managed to become a leader in providing the delivery of packages and mail through both domestic and international air, ground, and electronic courier services. Major players in this industry include UPS, FedEx, DHL, and TNT who collectively account for 50% of the industry’s market share. FedEx is expected to have an additional 4.6% increase in revenue for the 2016 year, driven by increases in volume and more efficient use of its e-commerce space (IBIS). Because FedEx and UPS are the largest players in the industry, competition is often based on price and the quality of service provided, as consumers expect on-time

The company has maintained strong management and a division between domestic and international operations. International processes are oftentimes overseen by local management who have a greater scope of knowledge about those specific markets. In 2014, the company created a team dubbed the “control tower,” as a means to counteract bottleneck throughout its networks and oversee capacity management (Annual Report). As consumers become more conscious about corporate-social responsibility, businesses are adapting. UPS’s concern for its community and sustainability has allowed it to reduce costs, and simultaneously gain credibility in the public eye. Sustainability efforts can be seen in the company’s “conservation-enabling technology” and implementation of strategies to reduce emissions throughout the supply chain. Although UPS’s prices tend to be a little higher than those of FedEx and other competitors—the company attracts customers by its competitive strengths. These strengths include UPS’s presence in more than 220 global territories, easy-tracking technologies, broad supply chain services, and a strong financial standing. In 2014, UPS enhanced its Cyber Week operations domestically by implementing fully-staffed and operating air and ground delivery services as means to better serve their customers. UPS also invested upwards of a billion dollars to modernize machinery and manage volume fluctuations. The company also spread the availability of the UPS Mobile App for mobile devices to ten new nations in 2015, bringing the total to 16 countries (2015 Form