united parcel service case study

Vision and Mission Statement of United Parcel Service

Vision: The vision of the United Parcel Service is “To provide solutions and world class customer service by ensuring our retailers are supported in the over 5,000 communities we serve” (Building America 2022).

Mission:  The mission of United Parcel Service is “Passionately support the small businesses in our neighbourhoods because their community is our community (Building America 2022).

United Parcel Service Inc. Situation Analysis:

As one of the leading firms in its industry, this company has numerous strengths that help it to thrive in the market place. For example, this company offers the time definite delivery of shipments to the business across 140 countries and territories. However, current encountered shortage of labour market for high demand, especially Covid 19 infection that resulted in distancing (Clarke Friese and Washburn 2016).   The company also encountered logistic challenges that resolved through expanding market and labour force in the company.

Behaviours of the Target Market:

Wang et al. (2014), suggested brand awareness is the major behaviour of the company. For example, since this company is offering luxury products at premium prices to a market where the high-end market is considerably small in number will require, the consumers currently   buying the products developed by this organisation. They   tend to prefer online delivery because the population more likely get access without transportation (Vega-Figueroa, López-Becerra and López-Santana 2022). Hence, consider this company for delivering their desired products.

Industry Structure and economic feature:

This company is multinational shipping and receiving and supply chain management. Hence, this company works   in global logistic industry.  This company has a high revenue from international as well as local shipping that contributed to current stability in the market. For example, the current sales of national packages usually account for 61% of revenues while revenue of international packages account for 22% (Allen et al. 2018). However, apart from such revenue, Supply chain and freight-based revenue account for 17%.

United Parcel Service Strategic:

i) Business Level Strategies:

They comprised of two segments such as larger couriers and smaller local delivery company. They together focus on surface level, air and express courier delivery services of parcels, documents and packages of different consumers (Libo-on 2021).  Hence, their business strategy is to establish their   identity through next day air service delivery.

 ii) Corporate Level Strategies:

 The corporate level strategy is to be better not bigger framework because it guides them to be innovative, consumer first solution in high growth areas such as health care, international market and small business.  They use their   asset utilisation which improve their efficiency in supply chain.  

Competitive Analysis and Advantage in the industry:

UPS has an astonishing history in logistic and delivery.  They have very powerful competitive advantage because apart from logistics, they also focus on freight forwarding and couriers express delivery. However, they have strong competitors such as Fedex,  DHL , DB  schenker,  TNT  express  and USPS   and hence, they require strong product and pricing strategies in order to compete with  these companies.

SWOT Analysis

Strengths ii) Weaknesses iii) Opportunities iv) Threats

PESTLE Analysis:

Target Market Analysis of United Parcel Service

Demographic Characteristics of Market:

 The target population is younger individuals as A higher portion of the younger population tend to focus on this market. A moderate to high middle class is also important for United Parcel Service as its current consumers, and advocates.

Demographic Characteristics of Market:

 This company is currently focusing on younger population as younger population considered online method as mean of buying things.

Psychological Characteristics of the Market:

The social media influence of the brand awareness is the major driver of market. The younger population mostly consider media individuals as their role model in the social media increase inclination towards buying behaviour (Libo-on 2021).   Hence, this company will focus on such social media-based marketing and currently introduced ecofriendly products as well as all online means to attract consumers (Dobrodolac et al. 2012).

Strategies Appealing to Market:

Strategies Appealing to Markets are following:

• The company targets customers placed in different parts of the world. It offers services that a customer contracts form the company using the internet, sales offices and authorised dealers.
• The consumer specific strategies such as tracking the orders, constant support for the current orders (Libo-on 2021).   
• The easy refund support if the consumers are unable to receive appropriate time (Lee et al. 2017).

Marketing Mix of United Parcel Service

Product Strategy (Product Mix):

 The company provides a range of strategies such as:

• Door delivery services for 7 days delivery  (Kellermann, Biehle and Fischer2020)
• Pick-up services, online package tracking
• High quality of packing for fragile packets

Pricing Strategy:

Bulk pricing is considered to be cheap in this case. For example, A typical 2-pound Express small parcel will cost approximately $25 for three-day delivery (Sutrisno, Andajani and Widjaja 2019). However, with bulk delivery, they have high quantity.

Promotional/ Advertising Plan:

The company use promotions through advertisements on its websites and use social media. Since younger population is target population, the company mostly focused   on social media especially Facebook and Instagram. TV commercials, print ads, online advertisements are also common methods for promotions.

United Parcel Service Competitive Analysis

 iii) Price: The price has base rate which has season surcharge, security fee and other handling charges.

Strengths’ comparisons with competitors:

UPS is a technology enabled company and almost all the processes are governed by various tools and other solutions.

Weaknesses’ comparison with competitors:

Diversification becomes a need of every business for further growth. UPS is considered a giant in the courier transportation industry. However, at this juncture, UPS is not involved in any other business other than transporting couriers (Yıldız  2021).Hence, compared to other companies, this can be a potential distress for the company.

Organization’s Competitive Advantage:

This operates with more than 220 countries have and build a smart logistic networking   based on excellent target market as well as consumer service.   They have competitive   advantage for delivering through air or any transportation within 2 days (Yıldız  2021).  

Key success factors:

 The key success factors are following:

• Industry-Leading Customer Experience
• Health consciousness and sustainability
• leading consumer support even in COVID 19
• Secured appropriate business