Strategic Analysis of UPS: BMO2002 Report, Victoria University

This report provides a strategic management analysis of United Parcel Service (UPS). It begins with an overview of UPS's current business strategies, including transformational, expansion, low-cost, and focus strategies. The report highlights how UPS utilizes these strategies to gain a competitive advantage in the logistics industry. The analysis includes an examination of UPS's external and internal environments, incorporating elements such as opportunities, threats, strengths, and weaknesses. The report covers various strategic tools and frameworks like SWOT analysis. The report also discusses recommendations for future strategies that UPS should adopt to maintain and enhance its market position. The report is based on research and analysis of the company's operations and financial performance, providing a comprehensive understanding of UPS's strategic approach.

Strategic Management

STRATEGIC MANAGEMENT 1
Current Business Strategy
Transformation strategy
Transformational strategy is a functional strategy of the company that helps to gain the
competitive advantage. Transformational strategy states the figure, expression, or function
which is converted into another one of similar value. UPS applies this strategy in every part
of the company in order to implementing changes to earn high profit. The company transform
the every part of the techniques of delivering the services in order to provide the effective
services to consumers. The company adopts the transformation strategy in order to earn the
high revenue. In this strategy, the company transform its services with the advance
technology in order to increase efficiency in operation and enhance customer services. The
UPS transformation program leverage scale and institutionalises process helps to ensure the
efficiency gains and reinvests savings schemes through talent and financial resources.
Expansion Strategy
Expansion strategy of the company is an international level strategy that helps to gain the
competitive advantage. Expand the business at the international level helps to grab the high
market share in the industry. The company applies this strategy in four areas in which it can
achieve the success by earning the high profits. These are discussed below:
The company adopt the expansion strategy in order to grab the high market share. It
continuously expands the business at the international level by investing the large amount of
capital in expansion or buying the new aircrafts. It connects the domestic and exports
consumers to its global network so that they can also enjoy the success in the business.
It is observed that the company expand the business on two platforms and these are B2B and
B2C as the industry is growing with 40% from 2017 to 2022. B2B and B2C services define

STRATEGIC MANAGEMENT 2
the business to consumer’s services and the business to business services. The business to
consumers is more appropriate expansion as it is flexible for the consumer. The demand of
consumer is more as compare to business to business. The large scale area is covered with
this strategy. It has been seen that the company gain the competitive advantage by expanding
the business from B2B and B2C.
The company repositions its commercial and service strategies in order to grow in the
economic segments by reducing the complexity and costs. The company also take the
advantage of UPS-offered technology platforms.
The company invest the large amount in its global network to gain the competitive advantage
by grab the high market share. It buys the aircrafts and fleet assets are coming online and
record the levels. It makes a new record in delivering the services per hour 35000- 400000
pieces (UPS, 2018).
Low cost strategy
Low cost strategy is a business strategy of the company that helps to achieve the objective.
Low cost strategy of the company defines the services at the low cost to attract the consumer.
It has been seen that the UPS applies the low cost strategy to attain the high market share. It
is observed that the low cost service always attracts the large number of consumer towards
the services. The company has created their own sets of terms and norms in order to adapt the
customer needs with the same parameter. The organisation tries to satisfy the more and more
consumer needs in order to achieve the success in the business. The customer satisfaction is
the main aim of every organisation. Attracting the large number of consumer helps to grab
the high market share (Tough Nickel, 2018).

STRATEGIC MANAGEMENT 3
Focus strategy
Focus strategy is also a business level strategy of the company. This strategy states that the
company implied on the specific product in order to gain the competitive advantage. The
company mainly focuses on the three areas to increasing the sale and these are packaging
service, an international package delivering service and a supply chain services. In these three
areas, company attracts the consumers towards the services at international level. The
company applies this strategy at the international level by promoting the services. Promotion
is an effective source for the organisation to aware the consumers of all areas towards the
services. Supply chain is the main function of this organisation and focusing on these areas
attracts the consumers towards the high quality of services. The area in which the strategy is
applied helps to gain the competitive strategy in the market (UPS, 2018).

STRATEGIC MANAGEMENT 4
References
UPS. (2018) Annual Reports. [online] Available from: http://www.investors.ups.com/static-
files/36277c15-d055-4147-b150-f3d0d8f35996 [Accessed 1/05/2019].
UPS. (2018). UPS Transformation And Enhanced Business Strategy To Boost Future
Earnings. [online] Available from:
https://pressroom.ups.com/pressroom/ContentDetailsViewer.page?
ConceptType=PressReleases&id=1536839608147-645 [Accessed 1/05/2019].
UPS. (2018) Supply Chain Strategy. [online] Available from:
https://www.ups-scs.com/consulting/strategy.html [Accessed 1/05/2019].
Tough Nickel. (2018) United Parcel Service (UPS): A Harvard Case Study Strategy and
Industry Analysis. [online] Available from: https://toughnickel.com/business/UPS-A-Case-
Study [Accessed 1/05/2019].