United Parcel Service SWOT analysis – SWOT analysis of United Parcel Service: One of the top companies in the world of logistical services, United Parcel Service popularly called UPS is a global courier and parcel service based within the US. Alongside the logistics aspect, UPS also offers supply chain management solutions for supply chain management.
Although the main operation for UPS is logistics, the business is active in many related areas via their subsidiary companies UPS Airlines, which operates as a cargo airline Freight trucks operated under UPS Freight, and packing and shipping operations under UPS Store. The company that provides parcel services operates across the Asia Pacific, Africa, Europe, and the Caribbean.
Through its numerous subsidiary companies, UPS has made itself capable of handling the entire logistics and supply chain management. The largest company for parcel delivery worldwide, UPS employs around 444,000 employees including around 362,000 within the US and 84,000 people outside. UPS has a total annual revenue of around 66 billion.
United Parcel Service fun facts: UPS presently serves over 200 countries and territories, including every single address in North America and Europe. UPS has the world’s ninth largest airline, with 268 jet aircraft, and over 92,000 package cars.
About United Parcel Service – SWOT analysis of United Parcel Service
Company: United Parcel Service(UPS)
CEO: Carol B. Tomé
Founder: James E. Casey
Year founded: 28 August 1907, Seattle, Washington, United States
Headquarters: Atlanta, Georgia, United States
Annual Revenue: USD$84.6 billion
Profit | Net income: USD$6.44 Billion
Number of employees: 5,43,000
Products & Services: Business Cards & Stationery | Flyers & Brochures | Manuals & Presentations | Menus & Forms | Online Printing Services | Personalized Calendars | Postcards & Invitations | Posters & Banners
United Parcel Service Competitors
Competitors: FedEx | DHL International | Kuehne + Nagel | CEVA Logistics | Blue Dart | Royal Mail | C.H. Robinson | Deutsche Post | DB Schenker | GLS | XPO Logistics | Purolator | YRC Freight
SWOT analysis of United Parcel Service – United Parcel Service SWOT analysis
SWOT Analysis Of United Parcel Service is brand-based. SWOT Analysis of United Parcel Service evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing United Parcel Service’s SWOT Analysis. Below is the detailed SWOT Analysis of United Parcel Service.
Let’s talk about United Parcel Service’s SWOT assessment.
Strengths of United Parcel Service – United Parcel Service SWOT analysis
- Network: United Parcel Services can connect to every corner of the globe through its vast network and an extensive list of subsidiaries, making it the world’s biggest logistics firm. This network and the complete control that UPS can exert over it makes UPS one of the most powerful companies in the field.
- Goal section: Quite unlike its competitors which do not have a distinct goal, UPS primarily targets business customers. The company has many connections with businesses and serves as its logistic partner. This allows them to have an efficient and sustainable business model and concentrate on the small number of customers they serve while gaining the most value for their business.
- Technologies: UPS is one of the top tech companies and invests about USD 1 billion in technology each year, and has about 4700 employees. The main areas of technology are supply chain management and customer relationship management and tracking orders for delivery.
- Streamlining of processes: UPS has always been focused on streamlining processes specifically geared towards the customer. The processes are constantly re-engineered to adapt to changing patterns of customer behavior, technological developments as well as logistics. Some of the areas the company is focused on are our order tracking and customs clearance, as well as customer engagement, and invoicing. The procedures are thoroughly checked from end to end and then re-engineered regularly.
- High customer engagement: UPS allows customers to use all services they provide electronically. Their online platform allows customers to track their order and interact with a support manager round-the-clock via a toll-free phone number, or know the status of an order using the integrated phone response.
- Smart Logistics: UPS boasts the international Shipping Processing System that makes use of techniques such as scans that are smart, in real-time, tracking of delivery and order management and logistics plan, and more.
- The focus is on freight and supply chain: UPS acquired Coyote recently. This acquisition has enabled the company in accelerating its operations in the supply chain, and improve its logistics tactics.
Weaknesses of United Parcel Service – SWOT Analysis Of United Parcel Service
- Poor revenue control: With increasing numbers of customers preferring to shop in web-based stores, profits for United Parcel Services have dipped. The capital expenditure had to be increased as well as the infrastructure investments needed to be enhanced. Poor revenue management is the main flaw of United Parcel Services.
- Traffic management: United Parcel Services is faced with several difficulties when it comes to managing the flow of traffic. When the company grew, they were faced with new challenges in monitoring and billing orders. The logistics margins were significantly reduced due to the cost of managing traffic.
- FedEx: The largest competitor in the market for United Parcel Services has always been FedEx. Presently, FedEx has around 49 percent of the market in its express market and UPS is only 36 percent of the express marketplace. UPS has always tried to be competitive with its closest rival and secure an increased market share. This has resulted in a diverting of their attention away from other areas.
Opportunities of United Parcel Service – United Parcel Service SWOT analysis
- Emerging and new concepts: Logistics is a very innovative market, and there are many emerging trends like logistical outsourcing crowdsourcing RFID, and 3D printing. Each of these areas could be opening up an opportunity to create the development of a new market.
Threats of United Parcel Service – SWOT analysis of United Parcel Service
- Competition: The primary rivals to United Parcel Services are FedEx, Gati, United States Postal Services, DHL along with Canada Post.
Overview Template of United Parcel Service SWOT analysis
UPS is an American company that looks after the delivery of goods. It is spread in over 200 countries. The brand is fit for growth financially. However, it is dependent on the US for revenue. The sector is filled with big fish. The brand needs to pull its socks up to maintain its market share. It needs to invest hefty amounts in research and development to fight off its competitors. The pandemic is proving to be a real threat presently. UPS enjoyed a dominant position in the past but lately, it has been shadowed by its competitors.
This is the SWOT analysis of United Parcel Service. Please let us know if you have additional suggestions to add.
Let us know What do you think? Did you find the article interesting?
Write about your experiences and thoughts in the comments below.