UPS AND ITS MARKET PRESPECTIVES

UPS And Its Market Perspectives

UPS And Its Market Perspectives

Introduction

This paper makes the discussion on the marketing strategies of United Parcel Services (UPS). The paper makes discussion on the marketing environment faced by the company, and its impact on the marketing strategy of the company. The paper discusses the strategies currently used by the company, and the alternate strategic options which the firm can use.

Company Overview

United Parcel Services started its business as a package delivery company based on America in 1907. The main owners of the company were two teenagers named Jim Casey and Claude Ryan. They started their business from Seattle Washington. Their struggle and hard work brought success for the company, and the company is now considered as the leading company in package delivery industry. In order to fulfil its promise of providing the lowest price products with best services, the company uses the IT and IS systems. The company's IS system helps the company in recording the information at any time, place and region from the arrival of the parcel to the company till its final destination. UPS is famous for using the advanced technologies; the company has used DIAD, UPSnet and COMPASS technologies. As compared to its competitors like Federal Express and Airborne Express, the company uses unique and advanced technologies, and has gained the competitive advantage.

Nature of the Product

The product or service chosen in this paper is Shipping & Freight. UPS provides the best shipping and freight services to its customers. In order to provide the freight and shipping services, the company uses advanced technologies that help the company in gaining the competitive advantage (Agrawal, 2004, p. 26). The company is always keen to provide the best quality and low priced services to its customers; therefore, it makes all efforts for this.

Nature of Market

UPS offers its services to both the local or global market. The company is known as the globe's biggest package deliverance firm. It has its common considerations as the international leading comapny in SCM i.e. Supply Chain Management. The company delivers the packages in almost 200 countries daily, and serves almost 1.9 million shipping customers on a daily basis.

Strategy used by the Firm

United Parcel Services use both the transactional and relational strategies. Transactional strategies are those that only involve the transactions with the customers. It does not involve any emotional relationship with the customers. In transactional strategies, the company comes in a transaction with the customer, and sells them the products. The company also used the relational strategy (Bartlett, 2009, p. 34). In fact, most of its clients are on relational basis. In relational basis, the company gets attachment with the client and they both bind in an emotional relation.

Company's Marketing Strategy

Following are the marketing strategies used by UPS.

Segmentation

This term might be defined as the partition of marketplace for a product or service in a number of uniform and smallclusters. The core of segmentation at United Parcel Services might be depicted as the perception that individuals of ...