Capstone Essay Example | Topics and Well Written Essays - 2000 words - 2

Capstone - Essay Example The company operations are segmented in to three; US domestic package, International package and supply chain and freight (UPS, 2013). The supply chain and freight operations offers freight forwarding and logistics services, customs brokerage, supply chain design and management and consulting services to more than 195 countries across the world. Accordingly, UPS has diversified its services to billing technologies, payment solutions and risk mitigation services. The company operates more than 100,000 fleets of package delivery cars, tractors and more than 30,000 containers in airfreight transport. The competitors are United States Postal service, DHL international and FedEx (Magretta 2012). UPS mission, vision, and primary stakeholders UPS mission statement seeks to grow business through meeting the logistic needs of the clients and offering excellent services in all business operations. The company aims at maintaining strong financial position thus offering long-term impressive retu rns to the shareowners (Henry, 2008). Accordingly, the company is geared at inspiring its people and business partners through offering opportunities for personal growth and development. In addition, it is the aspiration of the company to lead by example in being responsible and sustainable company in making the difference in communities through social responsibility initiatives. Some of the UPS’s shared beliefs include integrity in its operations, innovation and creativity and teamwork. Accordingly, UPS is committed to quality and efficiency in the pursuit of excellence and safety of its people and business partners (Magretta 2012). The company is committed to continued environmental stewardship and social responsibility initiatives. UPS has a slogan that asserts; â€Å"what can Brown do for you† thus emphasizing that the company is capable of providing services to everyone across the world and to any address. UPS five forces of competition analysis Michael Porterâ₠¬â„¢s five forces of competition can be used to analyze the competitive strength and position of UPS in the market (Faarup, 2010). The first force is the threat of new entrants in to the market. In this case, the threat of new entrants in the global package delivery business is low due to the large economies of scale of the existing players such as DHL international, UPS and United States Postal service. In addition, large capital outlay is needed to establish operations through purchase of aircrafts, lorries, cars and hiring of personnel. Trade tariffs and international regulations have also made it difficult for other companies to enter in to the market. The second force of competition is the bargaining power of suppliers such as providers of fuel, business partners and trade unions. In this case, the bargaining power of suppliers is high due to demand for better salaries, rising fuel costs and providers of envelops and boxes who demand better prices for their services (Magretta 2 012). The third force of competition is the bargaining power of buyers. In this case, the buyers have moderate bargaining power due to high brand recognition, high brand loyalty and high switching costs (Henry, 2008). The fourth competitive force is the threat of substitutes in the global market. The threat of substitutes in the market is low since no real substitutes of airfreight and the company has diversified its services to offer integrated global shipping network (Faarup, 2010). In addition, UPS has controlled the threat of sub