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Published: 17-09-2019

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An Evaluation of the Strengths and Weaknesses of United Parcel Services

United Parcel Services being a transportation company that is based in America, is characterized by different strengths and weaknesses in the provision of domestic and international delivery services. The transportation provider concentrates on the delivery of letters and package to numerous destinations. Furthermore, the company is specialized in economic and logistic solutions to the customers. Even as it assists in the provision of the latest package delivery across the world, the service provider encounters different strengths, weaknesses, opportunities, and threats that can be compared to these that the FedEx Inc encounters throughout its operations (Cun et al, 1996).

SWOT Evaluation

Strengths


With the operations of UPS Business extended to more than 200 countries across the globe, it is approximated that the organization has a total of 400,000 employees who help with its vast operations. The large number of staff is helpful to the firm in sustaining a massive scale of operations and a broad base of client solutions in the wide international markets. The exclusive solutions due to the higher quantity of workers have been valuable in attaining tremendous advantages to the company. Fed Ex also a wide industry base but it has a slightly lower quantity of employees as compared to the UPS Company (Soupata, 2005).

The FedEx has an approximated number of 290,000 employees who operate in a lot more than 220 nations. With the growing number of workers who take part in the marketing and advertising activities, the organization is evidently making efforts to boost its solutions even as it provides far more alternatives to its clients. The higher quantity of staff who are manageable is strength to the business as excellent advertising and marketing is needed for efficient advertising activities in each organization.

UPS Firm has a brand name and it is also considered to be a prime fortune organization in the United States and in the entire globe. A brand name is a significant aspect in advertising and marketing as customers are attracted by simple aspects that give a company a optimistic image. FedEx Inc, on the other hand, is known for its timely deliveries, which is a element that a lot of clients think about just before choosing delivery solutions. Although UPS is identified for its brand that is distinctive, the FedEx Inc is constantly establishing its image by guaranteeing timely deliveries to its clientele.

UPS Firm is characterized by a tremendous advanced supply chain that helps in the advertising and marketing of the solutions of the organization across the complete planet. With the advantage of a massive advanced provide chain, UPS Business enjoys the robust and sound income development as the marketing and advertising activities quickly generate revenue to the service delivery organization. On the other hand, FedEx Inc guarantees the usage of the most current technologies, a issue that has contributed to the achievement of the firm over the years.

UPS Business has a vast coverage in the whole world, an advantage that comes with the advantage of an established brand in the marketplace. The vast networks globally have been valuable in maintaining a broad portfolio of solutions that attract a higher number of prospective buyers. A vast network globally has also ensured that the income earned by the company enhance continuously for the growth of the organization to markets that have not been discovered. In comparison to the UPS Firm that already has a vast marketplace across the globe, the FedEx Corporation has an benefit of persistence in recognizing and identifying markets that have not been targeted by its competitors. Striving to make efforts that will enhance the high quality of its solutions, the company has been effective in identifying new markets by providing them with effective services (Cun et al, 1996).

Having been considered a leading fortune 500 business, UPS Company tends to make the largest deliveries across the world in terms of both income and the quantity of packages delivered. FedEx Inc is also identified for its dependable understanding and expertise in carrying out company operations that involve the provision of logistic services. Its robust foothold in the markets and a steady info systems is considerable in creating a lot more revenue.

Weaknesses


Being a competitive segment, market place share growth is restricted as much more service delivery organizations come into the markets on a day-to-day basis. The brand of the UPS organization is also identified to be dependent on its delivery team at a variety of touch points. The delivery boys have to be paid for delivery hence, the organization charges heavily from its customers. The firm is also facing a drastic reduction in its operations as a result, weak earnings from the high-priced operations. On the other hand, FedEx Inc is far more dependent over the American markets in its delivery operations than in other nations globally. The FedEx also faces the challenge of competition among other delivery businesses therefore, a restricted market place share development. The marketplace share is also feared to be at the danger of declining in the future.

Possibilities


The UPS Company has the chance of regulation in the trucking business, generating chances of the business being extended. There is the want for the firm to extend its operations by undertaking partnerships with a lot more organizations across the globe. Far more partnerships may possibly be element of the international expansion through tie-ups. Expanding on the web purchasing for the firm and its business is an opportunity that would favor the UPS Organization in its development into the market. The major aim of on the web advertising is to improve the coverage of the company even as it strives to sustain the already existing markets. UPS Company also has the chance to make on-line agreement with its users thus, escalating its speed of doing company (Soupata, 2005).

For the FedEx Inc, employing cooperative methods may possibly be effective in enhancing organization operations in the organization. Mergers and acquisitions can be a appropriate way of difficult the competitors of the company across the globe. FedEx has the chance of delivering the most recent technologies that are special as compared to those utilized by other companies. Just like the UPS Company, strategic alliances will be advantageous in expanding the service portfolio of the organization. Once more, initiating initiatives that would reduce expense is a method that FedEx might use to increase the courier services of the organization (Bhardwaj, 2006).

Threats


New entries in the market with reduce operating expenses and labors with no unions pose a threat to UPS Firm. The new courier companies may possibly also lead to fluctuation in the exchange rate which is also a great threat to the company. Majoring in transportation solutions, continuous rise in oil rates is a threat as the company might be forced to improve its expenditure.

FedEx Inc can have its organizations affected due to the national labor relations that it has. Constant fuel costs could also minimize its income, just as the UPS Organization. Competitors are a threat to FedEx Corporation due to the fact the firm is nevertheless striving to locate its way into the industry, in contrast to the UPS Company that is properly established in the marketplace.

Company’s Corporate Social Responsibility


In a planet that firms are held to a greater level by customers, firms have to place in far more efforts as buyers look for more features in goods and services. Most customers anticipate that companies ought not to be only profit creating bodies, but they must be socially responsible to address social and environmental concerns. With the concentrate on social duty in the modern globe, numerous businesses strive to practice a few broad categories of corporate responsibility that is intended to boost their image.

For instance, the UPS Inc has recognized the value of social responsibility to the individuals living around their firms and the customers who are the principal supply of revenue to the business. UPS focuses on guarding the atmosphere as a way of enhancing the economy and empowering these who connect with the business in different methods. The organization has ensured that its consumers and those who work in the organization connect with other communities thus, exchanging tips that are beneficial for financial growth and development.

In comparison to the FedEx, there are variations in the manner in which the two massive transport companies deal with the concern of social responsibility. FedEx has ensured its social duty to billions of individuals across the globe. The company is socially accountable to improve the lives of those that it serves. Again, it is identified to assist businesses in accessing new markets. FedEx Inc has played a role in increasing and generating jobs that boost the living standards of its surrounding communities. The organization, therefore, concentrates on the development of tiny organizations to safer enterprises that would alter the lives of these who are optimistic to undertaking enterprise (Bhardwaj, 2006).

Apart from getting socially accountable to the atmosphere, businesses can also be socially accountable by undertaking philanthropic works such as donating national and regional charities. Ethical labor practices also demonstrate corporate social duty of organizations, especially those that operate in the international markets such as the UPS Business and the FedEx Inc. All the stakeholders in organizations have the duty of discovering out the significance of social responsibility because it defines the motives for investments in businesses and their mission as properly. Social duty ensures sustainability of companies in the environments in which they operate.

Long-Term Marketing and advertising Plan


The UPS Organization has to concentrate on greater methods that would location its brands to the international level, penetrating nations that the brand has not been established. The firm is focused on establishing brand awareness via a advertising and marketing group that would be recruited based on their encounter and academic qualifications. To maintain a high level of professionalism in the operations of the company, there is the require to ensure consistency in advertising and marketing activities through appropriate coordination of the activities by an skilled management team. The business is motivated to enhance its brand awareness and to continue producing benefits five years down the road with the support of the new management group and the advertising assistants.

An initiative to intensify on the web marketing and advertising activities in the company in the subsequent five years would be vital to make it recognized to the complete globe. On the web marketing and advertising as well as producing an on-line platform where consumers can make agreements with the firm would be necessary to increase the company’s industry position globally. The probable future is defined as knowing how the business would fit in the world in the subsequent five years to come (Vance, & Paik, 2017).
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