United Parcel Service (UPS) Strategic Research Paper

Pages: 22 (6817 words)  ·  Bibliography Sources: 15  ·  Level: Master's  ·  Topic: Business

SAMPLE EXCERPT:

[. . .] The company has acquired sufficient vehicles and airplanes that satisfy the demand for its services. This has ensured that the items to be delivered in different destinations are delivered on time boosting the levels of customer satisfaction in the business. This has acted as a major distinctive competitiveness for the company amidst the high competition that it faces from other players (Selig, 2008).

In addition, safe deliveries have made the company be recognized globally. The excellent reputation has enabled the company to acquire competitive advantage. Safety is a major factor in the transport industry that cannot be underestimated by the company. UPS has valued the need to ensure that the items that it transports are safe. The company is proud of its safe deliveries: the services have been designed in such a way that they guarantee maximum product safety. Safe delivery of items has benefit to the company by promoting the confidence of customers of the business (Rapp, (N.d.).

Management of information is also another distinctive competitiveness enjoyed by UPS. The company has greatly invested in new information technologies that allow customers to follow on their items on transit. The company has invested in key technologies that allow customers to track their cargo before it arrives at the designated destinations. Effective management of information has been an important resource in allowing a business win the confidence of its customers. It has been a resource to the company by making the company attract new through referrals.

In addition, the company has invested in proper management of information by displaying the necessary information on the company, and operations through its website. When it comes to accessing the company's website, critical information concerning the whereabouts of the parcels to customers on a global level at a low cost is available. The website has captured detailed information on the flow of different items. The customers of the business can easily access the website, and capture critical information concerning the services that the company currently offers (Boulton, 1999).

With real-time package tracking of information beneficial to the consumer, customer, and business, UPS achieves this proactively by using the Web, e-mail, and Touch-Tone phone. The use of the real-time package tracking system has played a key role in winning the confidence of customers in the business. Most of the customers of UPS have found a real-time package tracking system useful in helping them follow up with the movement of their goods, and parcels. Most of the customers have used this system to track their items as it flows through the channels of transport without stress (Seybold, 1999).

Merchandise information, customers, and the goods are critical success factors considered by UPS. The business customers have easy access to ship packages, track shipments, clear customs, and proactively notify end customers. The business has invested on a number of services that attract the business customers without inconvenience. The business customers have a large pool of deals allowing the business to make good revenues in the different seasons of the year. The tracking system of items has also been an asset to business customers by allowing businesses follow up with the items in transit before they arrive at their destination (Foss, Minbaeva, Reinholt, & Pedersen, 2009).

The UPS' streamline of end-to-end business for its customers' clientele, and their customers are a distinctive competency that many companies must encourage. The ability of customers to check the status of their order on the seller's Web is a competitive advantage associated with UPS. Indeed, the ability for customers to check on the status of their order on the seller's Web has made the company attract more clients through referrals. This service has made many of the customers find the company the most transparent because it transports the parcels and items from one destination to the other (Selig, 2008).

Competitively priced, timely, and accurate services within the company are the key success factors. The secret behind UPS is its competitive price, timely delivery of items, and accuracy in making its transactions. UPS has tailored its services with competitive prices as contrasted with the prices of its main competitors like FedEx. The company has put up competitive prices for its services, attracting customers of different socioeconomic status to seek the different services. The competitive prices of the company have allowed the company to make business with both individual and corporate customers across the divide (Weill & Ross, 2013).

Moreover, UPS can provide low-cost access to information concerning their customer's location and package contents. Furthermore, the customer has the liberty of changing the delivery direction that has become one of the powerful success factors for UPS because research conducted showed that very few companies have adopted this system of adjusting information. The company opened room for customers to change the delivery direction, an important factor that lacks in many other businesses. The introduction of this system worked well for the business by fostering the customer's flexibility by making changes in the destination of the items in transit (Rapp, (N.d.).

The research and development for UPS has taken a different direction by looking into vital aspects ignored by many logistics and transportation companies. Through research and development, UPS has adopted innovative ways to run their activities. The company has highly valued research and development (R&D) as a critical component of its business. This has enabled the company to come out of the traditional norms of its packaging services. Instead, research and development has enabled the company to have a fresh look at its services, and finding new ways of meeting the needs of the customers (Selig, 2008).

Through research and development, UPS has enhanced its interaction with its customers whilst satisfying their needs. Through R&D, the company has understood its diverse markets, the diverse needs of customers in each market, and the best ways to meet the needs of the customers. A number of changes have been implemented after research has been conducted on the customer's needs. For instance, through recommendations of research conducted on the needs of the customers, the service allows customers to change the direction of delivery of goods in transit was implemented. This makes evident the key role that research and development have played towards the growth of UPS.

Having this advantage, gives UPS a clear direction and oversight of the future outcomes of their work trends and thus, they have the ability to forecast and predict shortcomings. This has been able to save them from undergoing losses because of the research aspect conducted by the research and development department. This department has been able to develop products that meet the clients' needs and preferences in a manner that is digital in nature. As such, they can contact their customers via the Internet. This has been an important aspect of UPS business, for the industry is very competitive, and customer has a big say in its success (Seybold, 1999).

Initially, UPS had low brand awareness, but it decided to take a more segmented approach by enhancing its recognition. Ultimately, the brand or reputation of UPS products and services should mean the same thing all round the globe. It is true that good branding reinforces strong vision, yet a strong vision is central to having a good brand. Advertising, internal communications, aggressive public relations, and customer communications all contributed to the articulation and the reinforcement of the company's vision. The brown delivery trucks and UPS drivers have played a role in brand or reputation (Weill & Ross, 2013).

From the above explanation, the three key elements need to be associated with UPS success and includes service, globalism, and connectivity. For UPS, they have gone global because they work in over two hundred countries and territories and have been able to provide their customers with preferred standard service and delivery of package anywhere in the world. The company's expansion into the global network has made the business win the hearts of customers from the different parts of the world. Over time, the company has gained much experience in the way business is conducted across the territories: it has established efficient networks that have built the business (Boulton, 1999).

Connectivity is also evident in UPS because they have both physical and virtual connection that has seen them gain the powerful formula of e-commerce. The investing heavily on advanced information and communications technology in UPS business development has been experienced. Furthermore, this corporation has become a vital part of the global commercial value chain. The infrastructure of information on UPS allows the company to fulfill its strategy of prevalence and user-friendly in the virtual world. Additionally, alliances forged under the umbrella of e-commerce include companies like AT&T, Pandesic, iCat, PeopleSoft, IBM, Open Market, Lotus, and Harbinger have made UPS' shipping services be considered standard in software packages. They are used in catalogue creation and business-to-business shopping malls. The technology and logistics prowess of UPS all rely on the quality of service. Money spent… [END OF PREVIEW]

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