United Parcel Service, Inc. (NYSE: UPS) SWOT Analysis


• Reliable courier service around the globe, delivers more than 15 million packages in 22 countries.

• It has experience of more than 100 years in courier industry.

• UPS has divided the company operations into three segments: U.S. Domestic Package operations, International Package operations, and Supply Chain & Freight operations. US Domestic package operation is responsible for delivery of packages, letters and documents in United States. International package operation deals with the delivery of shipment outside the boundary of US in 220 countries. Supply Chain & Freight consist of UPS’s forwarding and contract logistics operations, UPS Freight, and other related business units.

• It employed more than 400,000 employees around the globe.

• It has strong distribution network nationally and internationally.

• The company has strong financial position: High liquidity, High revenues and profits.

• Customers of UPS are satisfied from the service level of UPS.

• Strong brand in the industry.


• Strong presence in Union limits the company expansion options.

• It charges high from its customers for the services.

• Usage of alternatives sources of energy to reduce transportation cost.


• Agreement with online merchants will increase the business.

• Expansion of Supply Chain & Freight operations.


• Raise in fuel prices will increase the cost of services.

• UPS has been facing strong competition from national and international players in the industry include DHL, USPS, Canada Post, FCML WORLDWIDE, LDH Express, Deutsche Post (and its subsidiary DHL), Royal Mail, Japan Post and India Post.

• Economic slowdown due to recession in major parts of the world.

• Entry of new players in international market.

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