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 various strengths and weaknesses in the provision of domestic and international delivery services. The transportation provider concentrates on the delivery of letters and package to various destinations. Moreover, the company is specialized in financial and logistic services to the clients. Even as it assists in the provision of the latest package delivery across the world, the service provider encounters various strengths, weaknesses, opportunities, and threats that can be compared to those that the FedEx Inc encounters during its operations (Cun et al, 1996).

SWOT Analysis

Strengths

With the operations of UPS Company extended to over 200 countries across the globe, it is approximated that the company has a total of 400,000 employees who assist with its vast operations. The large number of employees is beneficial to the company in maintaining a large scale of operations and a broad base of customer services in the wide international markets. The exclusive services due to the high number of employees have been helpful in achieving tremendous benefits to the business. Fed Ex also a wide market base but it has a slightly lower number of employees as compared to the UPS Company (Soupata, 2005).

The FedEx has an approximated number of 290,000 employees who operate in more than 220 countries. With the increasing number of employees who take part in the marketing activities, the company is evidently making efforts to improve its services even as it provides more options to its clients. The high number of employees who are manageable is strength to the company as good marketing is required for efficient marketing activities in every organization.

UPS Company has a brand name and it is also considered to be a top fortune company in the United States and in the entire world. A brand name is a significant aspect in marketing as clients are attracted by simple aspects that give a company a positive image. FedEx Inc, on the other hand, is known for its timely deliveries, which is a factor that many clients consider before choosing delivery services. While UPS is known for its brand that is unique, the FedEx Inc is continuously developing its image by ensuring timely deliveries to its clients.

UPS Company is characterized by a tremendous advanced supply chain that helps in the marketing of the services of the company across the whole world. With the advantage of a large advanced supply chain, UPS Company enjoys the strong and sound revenue growth as the marketing activities rapidly generate income to the service delivery organization. On the other hand, FedEx Inc ensures the usage of the latest technology, a factor that has contributed to the success of the company over the years.

UPS Company has a vast coverage in the entire world, an advantage that comes with the benefit of an established brand in the market. The vast networks globally have been useful in maintaining a broad portfolio of services that attract a high number of potential customers. A vast network globally has also ensured that the revenue earned by the company increase continuously for the growth of the company to markets that have not been discovered. In comparison to the UPS Company that already has a vast market across the globe, the FedEx Corporation has an advantage of persistence in recognizing and identifying markets that have not been targeted by its competitors. Striving to make efforts that will improve the quality of its services, the company has been successful in identifying new markets by providing them with efficient services (Cun et al, 1996).

Having been considered a top fortune 500 company, UPS Company makes the largest deliveries across the world in terms of both revenue and the quantity of packages delivered. FedEx Inc is also known for its dependable knowledge and experience in carrying out business operations that involve the provision of logistic services. Its strong foothold in the markets and a stable information systems is significant in generating more revenue.

Weaknesses

Being a competitive segment, market share growth is limited as more service delivery companies come into the markets on a daily basis. The brand of the UPS company is also known to be dependent on its delivery team at various touch points. The delivery boys have to be paid for delivery; thus, the company charges heavily from its clients. The company is also facing a drastic reduction in its operations; thus, weak earnings from the expensive operations. On the other hand, FedEx Inc is more dependent over the American markets in its delivery operations than in other countries globally. The FedEx also faces the challenge of competition among other delivery companies; hence, a limited market share growth. The market share is also feared to be at the risk of declining in the future.

Opportunities

The UPS Company has the opportunity of regulation in the trucking industry, creating chances of the industry being extended. There is the need for the company to extend its operations by undertaking partnerships with more companies across the globe. More partnerships may be part of the global expansion through tie-ups. Expanding online shopping for the company and its business is an opportunity that would favor the UPS Company in its growth into the market. The main aim of online marketing is to increase the coverage of the company even as it strives to maintain the already existing markets. UPS Company also has the opportunity to make online agreement with its users; thus, increasing its speed of doing business (Soupata, 2005).

For the FedEx Inc, using cooperative strategies may be efficient in enhancing business operations in the company. Mergers and acquisitions can be a suitable way of challenging the competitors of the company across the globe. FedEx has the opportunity of providing the latest technologies that are unique as compared to those used by other businesses. Just like the UPS Company, strategic alliances will be beneficial in expanding the service portfolio of the business. Again, initiating initiatives that would cut cost is a strategy that FedEx may use to boost the courier services of the company (Bhardwaj, 2006).

Threats

New entries in the market with lower operating costs and labors with no unions pose a threat to UPS Company. The new courier companies may also lead to fluctuation in the exchange rate which is also a great threat to the company. Majoring in transportation services, continuous rise in oil prices is a threat as the company may be forced to increase its expenditure.

FedEx Inc can have its businesses affected due to the national labor relations that it has. Constant fuel prices may also reduce its profits, just as the UPS Company. Competitors are a threat to FedEx Corporation because the company is still striving to find its way into the market, unlike the UPS Company that is well established in the market.

Company’s Corporate Social Responsibility

In a world that companies are held to a higher level by consumers, companies have to put in more efforts as consumers look for more features in products and services. Most consumers expect that companies ought not to be only profit making bodies, but they should be socially responsible to address social and environmental issues. With the focus on social responsibility in the modern world, many companies 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 importance of social responsibility to the people living around their businesses and the clients who are the main source of revenue to the company. UPS focuses on protecting the environment as a way of enhancing the economy and empowering those who connect with the company in various ways. The company has ensured that its clients and those who work in the company connect with other communities; thus, exchanging ideas that are useful for economic growth and development.

In comparison to the FedEx, there are differences in the manner in which the two big transport companies handle the issue of social responsibility. FedEx has ensured its social responsibility to billions of people across the globe. The company is socially responsible to improve the lives of those that it serves. Again, it is known to help businesses in accessing new markets. FedEx Inc has played a role in growing and creating jobs that boost the living standards of its surrounding communities. The company, therefore, concentrates on the growth of small businesses to safer enterprises that would change the lives of those who are optimistic to doing business (Bhardwaj, 2006).

Apart from being socially responsible to the environment, businesses can also be socially responsible by doing philanthropic works such as donating national and local charities. Ethical labor practices also demonstrate corporate social responsibility of businesses, especially those that operate in the international markets such as the UPS Company and the FedEx Inc. All the stakeholders in businesses have the responsibility of finding out the importance of social responsibility since it defines the reasons for investments in companies and their mission as well. Social responsibility ensures sustainability of companies in the environments in which they operate.

Long-Term Marketing Plan

The UPS Company has to focus on better methods that would place its brands to the international level, penetrating countries that the brand has not been established. The company is focused on establishing brand awareness through a marketing team that would be recruited based on their experience and academic qualifications. To maintain a high level of professionalism in the operations of the company, there is the need to ensure consistency in marketing activities through proper coordination of the activities by an experienced management team. The company is motivated to increase its brand awareness and to continue producing results five years down the road with the help of the new management team and the marketing assistants.

An initiative to intensify online marketing activities in the company in the next five years would be essential to make it known to the entire world. Online marketing as well as creating an online platform where clients can make agreements with the company would be necessary to improve the company’s market position globally. The probable future is defined as knowing how the company would fit in the world in the next five years to come (Vance, & Paik, 2017).