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Essay / An Assessment of the Strengths and Weaknesses of United Parcel Services
Table of ContentsSWOT AnalysisStrengthsWeaknessesOpportunitiesThreatsCorporate Social Responsibility of the CompanyLong Term Marketing PlanUnited Parcel Services being a transportation company based in America, is characterized by various strengths and weaknesses in the provision of national and international delivery services. The transport provider focuses on the delivery of letters and parcels to various destinations. Additionally, the company specializes in financial and logistics services to customers. Even though it contributes to providing the latest package deliveries across the globe, the service provider encounters various strengths, weaknesses, opportunities and threats that can be compared to those that FedEx Inc. encounters during its operations (Cun and al, 1996). .Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get the Original EssaySWOT AnalysisStrengthsWith UPS Company's operations expanded to more than 200 countries around the world, the company is estimated to have a total of 400,000 employees who assist in its extensive operations. The large number of employees allows the company to maintain a large scale of operations and a broad customer service base in vast international markets. The exclusive services due to the high number of employees have resulted in enormous benefits for the company. Fed Ex also has a large market base, but its number of employees is slightly smaller than that of UPS Company (Soupata, 2005). FedEx has approximately 290,000 employees in more than 220 countries. With the increasing number of employees participating in marketing activities, the company is obviously striving to improve its services while providing more options to its customers. The high number of manageable employees is the strength of the company because good marketing is necessary for effective marketing activities in every organization. The UPS company has a brand and it is also considered a very successful company in the United States and the United States. whole world. Brand naming is an important aspect of marketing because customers are attracted to simple aspects that give a business a positive image. FedEx Inc, on the other hand, is known for its on-time deliveries, a factor that many customers consider before choosing a delivery service. While UPS is known for its unique brand, FedEx Inc continually builds its image by ensuring on-time deliveries to its customers. UPS is characterized by an extremely advanced supply chain that helps market the company's services across the globe. whole world. Enjoying the advantage of a vast and advanced supply chain, UPS Company enjoys strong and healthy revenue growth as marketing activities quickly generate revenue for the service delivery organization. On the other hand, FedEx Inc guarantees the use of the latest technologies, a factor that has contributed to the company's success over the years. The UPS company has extensive coverage throughout the world, an advantage that comes with the benefit of an established brand in the market. The extensive global networks have been helpful in maintaining a broad portfolio of services that attract a high number of potential customers. An extensive global network has also ensured that the revenue generated by the company continually increases for the growth of the company in markets that have not been discovered. Compared to UPS which already has a large market around the world, FedEx Corporation has the advantage of persevering in recognizing and identifying markets that have notnot been targeted by its competitors. Striving to make efforts to improve the quality of its services, the company has successfully identified new markets by providing them with efficient services (Cun et al,1996). Considered one of the Fortune 500 companies, UPS makes the largest deliveries worldwide in terms of revenue and quantity of packages delivered. FedEx Inc is also known for its reliable knowledge and experience in carrying out business operations involving the provision of logistics services. Its strong market presence and stable information systems are important to generate more revenue. Weaknesses Being a competitive segment, growth in market share is limited as more and more service delivery companies are entering the markets daily. The UPS company brand is also known to be dependent on its delivery team at different touchpoints. Delivery people must be paid for delivery; thus, the company charges high fees to its customers. The company is also facing a drastic reduction in its operations; hence low revenues from costly operations. On the other hand, FedEx Inc is more dependent on the US markets for its delivery operations than other countries around the world. FedEx also faces the challenge of competition among other delivery companies; hence limited growth in market share. There are also concerns that the market share may decline in the future.OpportunitiesThe UPS company has the opportunity to regulate the trucking industry, thereby creating chances for expansion of the industry. The company needs to expand its operations by partnering with more companies around the world. More partnerships could be part of global expansion through tie-ups. The expansion of online shopping for the company and its operations is an opportunity that would promote the growth of the UPS company in the market. The main objective of online marketing is to increase the coverage of the business while striving to maintain the already existing markets. UPS also has the ability to enter into an online agreement with its users; thus, increasing its speed of doing business (Soupata, 2005). For FedEx Inc, using cooperative strategies can be effective in improving the company's business operations. Mergers and acquisitions can be a suitable way to challenge the company's competitors across the world. FedEx has the opportunity to provide the latest technologies that are unique compared to those used by other companies. Just like the UPS company, strategic alliances will be beneficial in expanding the company's service portfolio. Again, launching cost-saving initiatives is a strategy that FedEx can use to strengthen the company's courier services (Bhardwaj, 2006). ThreatsNew market entries with lower operating costs and a union-free workforce pose a threat to the UPS Company. New courier companies may also cause fluctuations in the exchange rate, which also poses a great threat to the business. Specializing in transportation services, the continued rise in oil prices poses a threat as the company may be forced to increase its expenses. FedEx Inc may see its operations affected due to the domestic labor relationships it maintains. Consistent fuel prices can also reduce its profits, just like the UPS company. Competitors pose a threat to FedEx Corporation because the company., 2017).