Case Fact :

1. UPS is the largest logistics company in the world based on revenue and package volume
2. UPS was founded in 1907 by teenagers Claude Ryan and Jim Casey as the American Messenger
Company in Seattle, Washington
3. The company changed its name to United Parcel Service and moved its headquarters to New
York
4. UPS continued to grow over the years, and in 1975 the company began serving Toronto, Canada,
marking the first time UPS served customers outside the USA
5. In 1994, the company moved its headquarters to Atlanta, Georgia
6. Operating in the air delivery and freight services industry, UPS delivers packages up to 150
pounds across the USA and to
220 countries worldwide
7. Serving customers since 1907, UPS operates a fleet of more than 100,000 cars, vans, trucks,
tractors, and motorcycles and more than 530 aircraft and uses 35,000 transport cargo
containers
8. UPSs Q2 of 2013 revenue increased 1.2 percent as the companys daily international package
volume improved 5 percent and domestic volume grew 1.9 percent from the prior year
9. For Q2, UPS delivered 15.7 million packages per day, an increase of 2.3 percent over the prior-
year period
10. UPS global air network is headquartered in Louisville, Kentucky, where the company can process
416,000 packages per hour
11. UPS operates under three principle segments: (1) U.S. Domestic Package, (2) International
Package, and the newer and much smaller (3) Supply Chain and Freight segment

Problem :

1. The company having an issue with acquisition TNT Express in Europe because companies outside
the European Union cannot hold stakes of more than 49 percent in airlines

SWOT Analysis

Strengths :

1. The large dedication from the employess because employee-owner concept. Company
believes employee stock ownership was a vital foundation for successful business
2. UPS has been working in over 200 countries of the world and it has about 4, 00,000 employees
across the world, who are expert in their works.
3. Strong market position because UPS operated in many countries
4. Strong revenue growth
5. The company has maintained strong brand name and it is also included in the fortune 500
companies of the world
6. The company has vast and excellent network across the world and has tremendous advanced
supply chain
 7. The company has maintained its broad portfolio of services to attract huge number of clients

Weakness :

1. As this company is the competing company so it has limited market share growth
2. The company has to depend on the working of the courier boys, who perform the delivery of the
letters and package at the touch points

Opportunities :

1. UPS have benefits from several key trends in the marketplace, including (a) expansion of global
trade, (b) growth in emerging, markets, (c) outsourcing, (d) retail commercial growth, and (e)
increasing trade across borders.
2. Geographical expansion. The company have the opportunities to expand their business in
another city, country or continent
3. The company is working in various countries and it should increase its scope to other countries
to make it more globalize
4. The company needs to extend its business by making some partnerships with other companies
across the world

Threats :

1. UPSs major competitors are FedEx and the United States Postal Service
2. Various new courier companies entered in market with low operating costs
3. Lingeric economic trouble in Europe

Strategy :

1. UPS opened 12 new dedicated health care facilities on four continents, bringing the company
total to 37
2. The company maintain several stock-based compensation programs to facilitate employee stock
ownership. This program is developed to make loyality and dedication from the employees
3. invest in global healthcare network to become the largest medical products transporter in the
world with expand distribution facility network in the Asia Pacific region
4. UPS plans to increase its market share in Europe, where half of all its international revenue
derives from; strong growth is expected to continue in Germany, the United Kingdom, France,
Italy, Spain, and the Netherlands