United Parcel Service Case Study United Parcel Service Case Study United Parcel Service‚ Inc. (“UPS”) was founded in 1907 as a private messenger and delivery service in Seattle‚ Washington.UPS is the world ’s largest package delivery company‚ in terms of revenue and volume‚ and a global leader in supply chain solutions. UPS deliver packages each business day for 1.1 million shipping customers to 7.7 million consignees in over 200 countries and territories. In 2011‚ UPS delivered an
Premium United Parcel Service United States Postal Service
Porters 5 forces Pestle? Business plan The unexpected Incongruities‚ Process needs‚ Industry structure‚ Demographics Changes in perception‚ New knowledge Idea‚ Invention‚ Innovation‚ Diffusion Companies own assets Physical Intangible Human In the past Competitive advantage came from physical assets such as property/land/Financial clout Still important (anyone fancy taking on Apple?) but Intellectual property (patents) and key process management (we know how to do this) i.e. what we
Premium Innovation Value added Creativity
PORTER’S FIVE FORCES 4 Power of Suppliers Criteria Level Effect on Power Effect on Profit Difference of Inputs High Increases Decreases Cost of Switching Suppliers High Increases Decreases Threat of Forward Integration High Increases Decreases Supplier Concentration High Increases Decreases Difference of Inputs Product differentiation within inputs in the tech industry is largely dependent on how recently the input has been developed (the extent of which it is considered
Premium Substitute good Strategic management Product differentiation
Porter’s 5 Forces Analysis- Need to include one consistant example-The conclusions/improvements that can be drawn from Porter’s 5 Forces-Every force should have a fancy quote and reference Introduction Developed by Michael E. Porter‚ “Porters 5 Forces” have shaped a generation of academic research and business practice. Intense forces lead to less attractive returns on investment as can be seen in the airline textile and hotel industries. Benign forces exist in industries such as software‚ soft
Premium Cost Competition Barriers to entry
The impact of environmental and government regulations made United Parcel Service (UPS) an innovative company that developed a strategic environmental management system that adheres to the principles of ISO 14001 standard (UPS 2010 sustainability report‚ 2010). To ensure compliance with regulations in the various countries and the United States‚ UPS has region environmental mangers and district environmental coordinators within their operations. The managers have access to training programs that
Premium Environmentalism Environment Natural environment
Porter’s Five Forces Model Porter’s five forces use for; to develop a wide and detailed analysis of competitive position (especially on industry level)‚ while the determining and creating new strategies‚ planning‚ making investments or disinvestments for current or a brand new business or organization. (Businessballs‚ Michael Porter’s Five Forces Competition Theory Model‚ 2009). Porter’s five forces determined as; “Supplier Power; Differentiations of inputs‚ supplier concentration‚ importance
Premium Strategic management Smartphone Porter five forces analysis
United Parcel Service of America‚ Inc. (UPS) had grown spectacularly from its humble beginning in 1907‚ when 19-year-old Jim Casey borrowed $100 to start a messenger and home- delivery service for Seattle department stores. By 2007‚ UPS had become a global public company‚ with a market cap of $74 billion‚ more than 428‚000 employees‚ $47 billion in revenue‚ and operations in more than 200 countries. A recognized leader among package- delivery companies‚ its growth had been above industry averages
Premium United Parcel Service Strategic management Vertical integration
company has been around in China for decades and boasts a long history of quality products and consumer satisfaction‚ which has allowed the company to obtain a considerable share of the market. It is shown in accelerated investment activity in the 2000’s which indicates showing long term commitment to China and construction of 16 factories from 1993-2006 in China to meet consumer demand. As a result‚ new entrants into the industry must attempt to seize a portion of Nestlé’s market share in order to
Premium Good Substitute good Food industry
Case #4: THE BATTLE FOR VALUE‚ 2004: FEDEX CORP. VS. UNITED PARCEL SERVICE‚ INC. Synopsis and Objectives • Set in June 2004 • To assess the financial performance of FedEx Corp. and United Parcel Service‚ Inc (UPS). The two firms have competed intensely for dominance of the overnight express package industry. • This case is intended for use in an introductory discussion of corporate value creation and its sources. It requires no numerical computations; rather‚ the tasks are
Premium United Parcel Service Value added Stock market
United Parcel Service Executive Summary UPS has announced that after more than 90 years as a private company‚ it was planning an initial public offering to become a publicly traded company. In response to this‚ we will first analyze UPS¡¦s business strategy and it¡¦s sustainability of its current performance. Then we will look at key factors to estimate the UPS¡¦s market capitalization value using FedEx¡¦s multiples as well as ¡§best in breed¡¨ company premiums. From this‚ we concluded that
Premium United Parcel Service Public company Revenue