10 Stock Performance (http://global. factiva. com/en/chmd/chart. asp
11 2003 Package Operations2003 Delivery Volume: 3.4 bil packages and documentsDaily Delivery Volume: 13.6 mil packages and documentsService area: More than 200 countries and territoriesCustomers: 7.9 mil daily (1.8 mil pick-up, 6.1 delivery)Operating facilities: 1,748Delivery fleet: 88,000 cars, vans, tractors, motorcyclesAircraft: 582
12 2003 Revenue by Segment (In billions) www.UPS.com $2.9$5.6$25.0
13 Competitive Forces Affecting The Company (Recklies)
14 Competitive Rivalry Within The Industry Federal ExpressUnited States Postal ServiceTNT Post GroupDeutsche Post World Net
15 Threat Of New EntrantsA good amount of resources to start up and run a company of that nature. The investments needed in information technology are too much and this acts as barriers to entry.UPS has invested millions of dollars in the development and use of technology and so have many of its major competitors.
16 Threat Of SubstitutesNew ways to communicate such as and other forms of communication are being used more frequently.Federal Express, the United States Postal Service, and others offer a similar service and this is where substitutes can hurt UPS.
17 The Bargaining Power Of Customers Customers can’t bargain with UPS about prices, but they can go somewhere else to get their packages delivered.This is easy to do and any customer can just switch over to a competitor because membership is not being required if you decide to use a new carrier
18 The Bargaining Power Of Suppliers Because they provide more of a service in delivering packages, there is no real direct supplier to be worried about.Ground delivery units, aircraft transportation firms, and IT supportAir2Web, Inc. helped with wireless shipment tracking as a part of its service package. Able to link business applications to multiple wireless networks.
19 Strategy & ChallengesTheir strategic goals changed and were able to integrate new technology with overnight and ground services to compete with Federal Express.Since the middle of the 1980’s USP has invested $14 billion dollars to build integrated global networks.In 1990 they introduced their own handheld, called Delivery Information Acquisition Device (DIAD) that captures and transmits delivery data in real time. By integrating it with their services, they stayed ahead of Federal Express with that technology.The strengths of UPS are their reputation and adaptability. They have been in the business for more than 90 years and have performed to their customers expectations.Their weaknesses are that they are the largest business in the parcel delivery industry and have the most market share to lose. Also constant changes in technology play a role in their future due to the constant need of upgrading and developing.
20 Tracking process Synchronized Commerce Goods Information Funds UPS IT/IS UsageTracking processSynchronized CommerceGoodsInformationFunds
21 Usage continued Parts Planning Order to Cash Lower inventory costs Service improvementEnhanced performanceOrder to CashOrder flexibilityCost savingsSimplicity of the supply chain
22 Distribution Services Network Combines IT networksAbility to leverage established networksInventory staging99% Reach
23 Recommendations Develop easy to use systems Market to online shoppers and at home businessesEmployee satisfactionMaintain on-time delivery