Business Policies
The previous thread was about the UPS external environment analysis of which some of the core findings (diversification, global coverage, value-added services and need for cost-efficiency) relate to the internal analysis. UPS, which is an American courier and freight forwarding services provider that offers extensive global coverage to large and small businesses for growth. The corporation offers its value-added logistics, freight, transportation and consultancy services to major industries such as Aerospace and Defense, Automotive, Consumer Services, Healthcare, Retail, Industrial Manufacturing and Distribution, Government Agencies, High Tech and Professional Services. In addition, UPS is focusing on diversification by specifically focusing on e-commerce industry to sustain its business growth.
The global services provider highlights the major supply chain limitations of online ventures as they don’t have their own distribution channel. Therefore, UPS anticipates the phenomenal scope of online industry due to increasing digitization as the majority of online businesses need a reliable partner like UPS to ensure global product deliveries at a competitive freight cost. For instance, there is immense need to extend portfolio of value-added services with premium customer experience because the barriers to entry are limited for UPS in a global context but the internal factors pertaining to efficiency, service delivery and time issues are critical to sustain growth in local market, where competitive threats from small regional players are high. In fact, the small courier companies that only exist in counties and neighborhoods have established a strong niche and clientele of online partners because of their premium services. UPS could penetrate faster by using its integrated logistics and transportation systems for regular and urgent shipments. Although, the current international fuel prices are low but the adverse consequences of any future price increment could be balanced out by means of fleet efficiency and technology solutions. Therefore, UPS today needs more technology acquainted employees to enhance organizational creativity and competitive edge.
