United Parcel Services New Business Model

The logistics and courier sector is flooded by both new and established companies, which offer great competition to United Parcel Services. Some of these companies include DHL and TNT Express that have a presence in a number of countries. With an increase in globalization, courier service is an essential aspect as it connects different parts of the world. Therefore United Parcel Services needs a new mission statement that will capture the necessary strategies to make it remain competitive and satisfy its customers’ needs as well as the stakeholders’ expectations.

o UPS’s mission is to grow the global business by satisfying all the logistical needs of its consumers around the world. The company’s target market comprises of individuals, small and large companies and organizations who are in need of logistical services for their products.

o UPS seeks to maintain a financially stable company through the incorporation of employee ownership. In so doing, the workers will be motivated, and consequently work hard towards providing substantial long-term returns to the shareholders.

o UPS endeavors to inspire people and businesses to do their best in whatever they are engaged in without fear of being a distance away from their partners or headquarters. The company will do its best to deliver the packages promptly to foster success and personal development.

o The company continues to invest in research and development to ensure it remains relevant and seizes every opportunity that comes across their path. UPS regularly employ new ways of operation through creativity and change that have been essential factors for the company’s growth.

o UPS is a socially and environmentally friendly company, which seeks to lead by example as a caring and responsible company through sustainable initiatives that aim towards making a difference in the societies we serve. The company also takes part in environmental conservation campaigns by using appropriate techniques such as the use of biodegradable packaging of the parcels.

o The employees are a valuable asset to the company; they are in charge of the processes that take place in all the sectors of the company. Therefore, UPS is concerned about the welfare of the workers and works towards ensuring they remain productive by providing a friendly work environment. The company also allows the employees to own part of the company’s shares and earn dividends. UPS boasts a diverse workforce with exemplary skills and experience in logistics.

o The company’s major competitive advantage is creating value for the consumers using its advanced portfolio of logistics capabilities. UPS provides products and services that broaden the clients’ access to the global market and build a competitive advantage for our customers as well. Also, we offer industry-leading technology that enhances the business processes and guarantee efficient operation across all departments, and as a result promote excellent customer experience.

o The current industry trends portray the use of sophisticated technology that ensures every part of the world stays connected. In a like manner, UPS employs the latest technology in most of its operations to ensure efficiency. The company seeks to expand its coverage to new markets in different countries. Therefore, there is a need for using the most advanced communication technology that will provide a reliable connection between of the branches worldwide. Similarly, the company aims to employ up to date tracking technology that allows the customers and the workers to track the packaging, loading, transportation, and delivery of the goods. This will also ensure the company upholds its pillar of integrity.

Proposed New Business Model

United Parcel Service new business model will have the following elements

UPS Marketing and Advertising: Responsible for marketing the business through effective advertising across borders. Besides, identifies new markets and loops holes in the current market, and comes up with strategies to fill the gaps.

UPS Research and Development: Finds out suitable methods that can be incorporated in the daily processes to enhance productivity and promote growth.

UPS Technology: Responsible for identifying the appropriate technology that will enable the company to operate efficiently and to meet its consumers’ needs adequately

UPS Tracking: Responsible for managing the tracking of goods in transit as well as stored products.

UPS Customer Service: Response to consumers’ queries regarding the products and services offered by the company.

UPS Business Analytics: Responsible for analyzing the potential of both current and new markets. And providing recommendations appropriate approaches to penetrate the markets

Since the company is on the verge of obtaining a significant competitive advantage through growth and further market penetration, the proposed model will aid the process and enhance the company’s prosperity. Research and development enable companies to come up with strategic approaches to outdo their competitors and obtain a more significant market share. In the current market, most business thrives by using state of the art technology that ensures efficiency and reliability. Likewise, the proposed business model emphasizes on the use of advanced technology to improve processes and increase customer satisfaction (Boons & Lüdeke-Freund, 2013).

All the services considered in the business model aim at positioning UPS ahead of other global logistics companies. Marketing and advertising will enable the company to identify potential markets and to improve customer retention in the areas it has already captured. To penetrate the global market, companies invest a lot of resources in advertising. Therefore, advertising will ensure UPS enters the target markets and reaches out to its target customers. The elements of the proposed business model are all focused on enhancing the growth of the company and acquisition of more substantial market share through the incorporation of aggressive business approaches (Flint, 2004).

References

Boons, F., & Lüdeke-Freund, F. (2013). Business models for sustainable innovation: state-of-the-art and steps towards a research agenda. Journal of Cleaner production, 45, 9-19.

Flint, D. J. (2004). Strategic marketing in global supply chains: Four challenges. Industrial marketing management, 33(1), 45-50.