Table of Contents
Strengths, Weaknesses, Opportunities and Threats Analysis
Advantages
Areas of improvement
Opportunities
Dangers
Corporate social responsibility
Long-Term marketing plan
United Parcel Services’s American base is one of its many strengths. However, it also has some weaknesses. Transport provider focuses on delivering letters and packages to different destinations. The company offers financial and logistics services. When it comes to delivering the latest packages all over the world, FedEx Inc. faces many of the same strengths, challenges, opportunities and threats.
SWOT AnalysisStrengthsWith 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. This large workforce allows the company to provide excellent customer service and maintain large-scale operations in international markets. Due to its high employee count, the company has been able to achieve tremendous benefits. Fed Ex, which has a similar market size to UPS Company but slightly fewer employees, also enjoys a wider customer base.
FedEx employs approximately 290,000 people in over 220 countries. In addition to offering more choices to customers, the company has clearly increased the number of its employees involved in marketing. The company’s ability to manage a large group of employees is an asset, since marketing is essential for any business.
UPS Company is a Fortune 500 company and has a well-known brand. A company’s brand is an important aspect of marketing. Clients are attracted to the simple things that make a good impression. FedEx Inc is renowned for its prompt deliveries. This is something that clients look at when choosing delivery services. FedEx Inc, on the other hand, is constantly developing its image through timely deliveries.
UPS Company’s supply chain is very advanced and helps with the marketing of its services around the world. UPS Company is able to generate a steady and strong revenue increase thanks to a large, sophisticated supply chain. The marketing activities are a major source of income for this service delivery company. FedEx Inc., on the contrary, uses the latest technology to ensure its success.
UPS Company’s global coverage is vast, and comes as a benefit from an established market brand. The global networks have helped UPS maintain a diverse portfolio of services, which has attracted a lot of customers. The company’s revenue has increased continuously due to its global network. FedEx Corporation can take advantage of the fact that it has been persistent in identifying new markets, as opposed to UPS Company who already have a global market. The company, which strives to improve its service quality, has identified new markets through efficient services.
UPS Company, which is a Fortune 500 Company, has the highest revenue in the industry and delivers the most packages around the world. FedEx Inc. also has a reputation for having a wealth of knowledge and expertise in the area of providing logistical services. Its strong market position and stable IT systems are key to generating additional revenue.
Weaknesses As a highly competitive market, the growth of the market share is limited. This is due to the fact that more and more service providers enter markets every day. UPS also relies on its delivery crew at multiple touchpoints to build and maintain the brand. Delivery boys must be paid, so the company will charge a lot from their clients. The company faces a dramatic reduction in operations and, therefore, low earnings. FedEx Inc. relies more on American markets than any other country in the world for its deliveries. FedEx faces a challenge from competition with other delivery services, and this has a negative impact on its market share. Also, the market share could decline in future.
The UPS Company can regulate the trucking industry and expand the industry. The company must expand its global operations through partnerships with other companies. Through tie-ups, the company may expand its global reach by forming more partnerships. UPS Company’s growth in the market would be aided by expanding its online business and shopping. Online marketing’s main goal is to expand the company’s market reach while maintaining the existing ones. UPS Company is also able to enter into online agreements with users. This will speed up the business process (Soupata 2005).
FedEx Inc. can benefit from cooperative business strategies. Mergers, acquisitions and other business strategies can help FedEx Inc. to better compete against its competitors in the global market. FedEx is able to offer unique technologies, which are not used by any other business. Strategic alliances, like those of UPS Company will help expand the service offerings. FedEx might use the same strategy as UPS to boost its courier service.
ThreatsNew competitors with lower costs of operation and no unionized labor pose a risk to UPS Company. This is a major threat because the new couriers could also affect the exchange rate. Constantly rising oil prices are a danger to the transportation company, as it may force them to increase expenditure.
FedEx Inc. may be affected by its national union relations. Fuel prices that are constant can also affect its profitability, as they did for UPS. FedEx Corporation is threatened by competitors because it is still trying to establish itself in the market. UPS Company is already well-established.
Company’s Social ResponsibilityIn an age where consumers are more demanding, companies must put more effort into their products and services. Consumers want companies to be more than profit-making entities. They expect them to be responsible for social and ecological issues. Many companies are attempting to improve their image by focusing on corporate social responsibility.
UPS Inc. has, for instance, recognized the importance that social responsibility plays in the lives of the people who live near their business and to its clients. UPS protects the environment and uses it to empower people in different ways. The company has worked to ensure that clients and employees of the company are able to connect with others in order for them and their ideas to be exchanged.
FedEx is not the only big transport company that has a different approach to social responsibility. FedEx’s social responsibility has been assured to billions around the globe. It is the company’s social responsibility to improve lives for those it serves. It is also known for helping businesses access new markets. FedEx Inc. is credited with helping to create and grow jobs in the communities around it. The company concentrates its efforts on the development of small enterprises into more secure businesses that will change the lives and outlook of people who are enthusiastic about business.
Businesses can be socially responsibile by giving to local and national charities. Social responsibility defines why companies are invested in and also their mission. Social responsibility is important for the sustainability of businesses in their environments.
Long-term marketing strategyThe UPS Company is looking for better ways to promote its brands internationally, including countries where it hasn’t been established. The company’s focus is on creating brand awareness, and will recruit a marketing staff based upon their experience. In order to maintain professionalism, a management team with experience must coordinate marketing activities in a consistent manner. With the new marketing assistants and management team, the company wants to improve its brand recognition and produce results for five years.
It is important to increase the online marketing activity of the company within the next 5 years to ensure that it becomes known throughout the world. The company will need to be able to market itself globally through online marketing. They may also create an online portal where clients can reach agreements with them. The company’s position in the future five years is what defines the probable future (Vance & Pak, 2017).
