The United Parcel Service (UPS) company is one of the largest and leading global delivery companies in the United States and in the courier industry. The company was founded in 1907 and serves approximately 10.5 million customers in over 220 countries, worldwide. The company’s success comes as no surprise as a result of their excellent customer experience, flexibility, efficiency, consistency, visibility and time-definite deliveries. The company specializes in, but not limited to: parcels, documents, letters and light packages through ground and express deliveries both to customers and small and large businesses. The company is prominent for their express delivery service and was voted number 1 in Fortune Magazine’s 2018 ranking of the “World’s …show more content…
In 2017, UPS made 20 million deliveries to customers on a daily basis and 5.1 billion annual deliveries in the 2017 fiscal year, an 6.4% increase from 2016. The company operates business through three segments that significantly contribute to the company’s overall profitability, they are: U.S. Domestic Package, Supply Chain & Freight and International Package. The purpose of this short paper is to provide a brief profile of the United Parcel Service (UPS) and the industry it operates, including the business market share and competitors, as well as opportunities and threats facing the business and industry outside of the particular governmental action now facing the business. In addition, examine the potential governmental action or political challenge that will influence the business in this particular …show more content…
Domestic Package segment generated 61.9% of the revenue in 2017, the most of the three segments. Since the company achieved competitive advantage for their time-definite deliveries, UPS has several competitors that are driven to be the largest delivery company, they consist of, but not limited to: air carriers, express companies, global postal services and many more. However, the three main and largest competitors are Federal Express (FedEx), United States Postal Service (USPS) and DHL (Schmidt, 2015). UPS has a strong global network and presence, innovative technologies, strong customer relationships, brand equity and financial savvy. However, stringent government regulations and intense competition are threats that will significantly affect UPS cost structure and profitability, respectively. In addition, more security requirements (rapid changing technology) result in higher operating costs. Some opportunities that the company may pursue are investments in technologies to meet the demand of consumers that are transitioning to online shopping. Therefore, giving the customers more options in delivery choices. Consumer shopping trends has significantly changed over the past few years. In store shopping was very popular but has quickly transitioned to online shopping, therefore, the courier industry is booming now more than ever. UPS is expected to continue increasing in revenue over the next five (5) years, which is another opportunity for the positive outlook in UPS air