UPS Case
Created in 1907 by James Casey with only $100 in Seattle, Washington, UPS is now the largest package distribution company in the world. Shipping over 13 million packages and documents a day and more than 4 billion parcels a year, UPS easily covers 200 countries and owns the world’s largest communication system. In the 1930’s the company originally named American Messenger Company now became the United Parcel Service. The word United was adopted to accentuate the unity of the company’s operations in each city, Parcel to recognize the nature of the business, and Service to specify what was provided to customers. Because of the Depression, UPS cancelled air service but restarted in 1953 offering two-day delivery to cities on both the East and West Coasts. This air package delivery grew in the 1980’s and forced UPS to create its own cargo planes which became the largest in the industry. UPS introduced Next Day Service in 1985 that became available in the lower 48 and Puerto Rico. Later that year, UPS came into a new beginning with the introduction their international air package and document service that connected the United States and six European nations. Today UPS picks up packages from 1.8 million customers a day and distributes to 6.1 million customers a day.
Being a Fortune 500 company, there are few issues that UPS deals with. However, as the case with every company, whether large or small there is always the threat of competitors taking your customers. UPS is in an increasingly stiff market where three other major companies, FedEx, USPS, and DHL have all had success in. Although UPS is considered the most successful company out of the four, they are behind FedEx in the air overnight express package division and behind the United States Postal Service in the ground package division.
UPS might also have a tough time expanding into the international market. DHL has been rapidly expanding into the international market and has experienced great...