UPS Competitive Profile Matrix

Competitive Profile Matrix A competitive profile matrix is a tool that allows companies to assess themselves against their competitors through identification of critical success factors. These factors are then weighted and scored to produce a total weighted competitive score for the company (Sohel & Rahman, 2014; Capes & Glissmeyer, 2012). While the matrix may be largely subjective and based on personal perspective it can still provide a company with a wealth of information as to how it compares to its competitors.
To complete the competitive profile matrix we selected FedEx and DHL as the companies to compare UPS to since they are its largest international competitors. The critical success factors that we selected and weighted as the most
The company’s major strengths lie in its customer service, convenience, employee dedication, financial profit, reliability, and market share. The company has been shown to have higher levels of customer loyalty than its competitors and this is most likely a result of the company consistently receives high marks for both customer service and reliability (BBB of Metro Atlanta, 2016; O'Brien, 2016; Williams, 2014; Derene, 2010; Li, Riley, Lin, & Qi, 2006; Rubin, 2006). The company also provides a convenient service for its customers by providing them with the ability to send packages to over two-hundred and twenty countries and drop-off packages at over sixty thousand locations (United Parcel Service of America, Inc, 2016; Marsan, 2015). These factors combined with the company’s high levels of employee dedication have facilitated the company being able to achieve a 54% market share domestically and control 25% of the international market (Levine-Weinberg, 2016; Carey, 2015; Trefis Team, 2014; Soupata, 2005). The only area in which the company can improve in relation to its competition is on the prices it provides its customers, which are significantly higher than most of its competitors for many of the services it provides (Roggio,
The company’s strengths lie in many of the same areas that UPS excelled, including customer service, convenience, financial profit, reliability, and market share. The company has an achieved a 90.66% reliability score for its deliveries and combines this with an A+ rating from the better business bureau to show how proficient this company is at providing a good service for its customers (BBB of Central, Northern, & Western Arizona, 2016; Rubin, 2006). Like UPS, the company allows its customers to send packages to over 220 countries around the world but provides expanded options of where to drop packages by partnering with UPS to allow DHL shipping from any UPS Store location (DHL International, 2016; The UPS Store, Inc, 2016). The company has leveraged these competitive advantages to realize a 34% international market share and over €607 million in income (Deutsche Post DHL Group, 2015a; Deutsche Post DHL Group, 2015b). The only area in which the company needs to become more competitive is pricing because its current prices for many of its services exceed that of many of its competitors (Park, Choi, & Zhang,