UPS SWOT Analysis 2021 – United Parcel Services, Inc.


United Parcel Services(UPS) SWOT Analysis & UPS Competitors

UPS SWOT Analysis 2021: Only A Few Companies Have Been Able To Thrive Within An Industry For More Than 100 Years, With UPS Being Among The Few. The Company Has Experienced Some Of The Most Challenging Economic Times In Its History And Has Come Out Stronger.

Utilizing Extremely Effective Techniques Throughout Its Lengthy And Distinguished History, UPS Grew To Become The World’S Largest Logistics And Delivery Services Company.

There Is A Lot To Learn By Analyzing UPS’S Strengths Weaknesses As Well As Threats, Opportunities, And Weaknesses. Here’S An Overview Of The UPS Swot Analysis.

Let’s Take A Deep Look At UPS SWOT Analysis, UPS Strenghts, UPS Weaknesses, UPS Opportunities, UPS Threats And UPS Competitors.

United Parcel Service(UPS) – At A Glance

Company: United Parcel Service (UPS)
 CEO: Carol Tomé
 Founder: James E. Casey
Year founded: August 28, 1907
Headquarters: Atlanta, Georgia
Employees (FY2020): 6,05,000
 Ticker Symbol: UPS
 Type: Public
Annual Revenue (FY2020): $84.06 Billion
Profit | Net income (FY2019): $5.23 Billion

UPS Products & Services: Transportation | Distribution | Contract Logistics | Ground Freight | Ocean Freight | Air Freight | Customs Brokerage | Insurance | Financing | Supply Chain Management  

UPS Competitors

Here Is The List Of UPS Competitors

  • FedEx
  • DHL International
  • Kuehne + Nagel
  • CEVA Logistics
  • Blue Dart
  • Royal Mail
  • C.H. Robinson
  • Deutsche Post
  • DB Schenker
  • GLS
  • XPO Logistics
  • Purolator
  • YRC Freight

United Parcel Service Or UPS Is The World’S Biggest Parcel Delivery Company That Was Established In 1907. UPS Can Also Be A Supplier Of Solutions For Managing Supply Chains. Its Service Spans 220 Countries. The Company Serves 1.5 Million Users And Provides Deliveries To Over 9 Million Customers. The Company Shipped Around 20 Million Boxes A Day, Which Is Approximately 5.1 Billion Boxes. 

UPS Is In A Strong Financial Position That Is Evident In Its Financial Performance In Past Few Years. The Operations Of The Brand Are Divided Into Three Business Segments, Which Comprise Us Domestic Package Shipment, International Package And Freight And Supply Chain. UPS’S Revenues In 2017 Reached 65.9 Million Dollars. A Vast And International Distribution Network Is A Part Of UPS Its Delivery System. The Company Employed 454,000 People In The Year 2017. 

The Company Has Earned The Title Of The Most Reliable In Its Sector Because Of Its Constant Reliability In The Service Delivery. It Has Maintained A High Levels Of Customer Satisfaction And This Has Allowed UPS to Expand Rapidly.

UPS SWOT Analysis – Overview

UPS SWOT Analysis


UPS SWOT Analysis – UPS Strengths

  1. High Global Reach: UPS Has Expanded Their UPS Worldwide Express And UPS Express Plus To Include 40 Countries In The Part And Now Provides Time-Specific Delivery Services To Companies Across 140 Different CountriesAnd Territories. In Addition, It Provides Small Delivery Services Across Around 220 Different Countries As Part Of Its International Package Operations.
  2. Online Tracking UPS Is One Of The Top Online Tracking Systems In The Business And Monitors More Than 295 Million Delivery Deliveries Each Day.
  3. The Smart Network: Effective Delivery Operations Are Dependent On Seamless Integration Of Distribution And Collection Mechanisms. UPS Has Invested $20 Billion To Construct Their Southeast Metro Automated Routing Terminal (Smart) Logistics Network Facility In Atlanta That Connects All The Equipment And Systems Throughout Its Network.
  4. Outstanding Customer Care: For Businesses To Draw, Please And Keep Customers Companies Must Offer Consistent, High-Quality Customer Service And Consistently, Especially When It Comes To Delivery. UPS Has Excellent Customer Support And Offers Higher Satisfaction With Its Customers That FedEx.
  5. Highly Innovative: Delivering Parcels Globally In Time Requires A Lot Of Technological Innovation. To Ensure That Each Parcel Is Delivered In Time Cio At UPS Created An Intelligent Logistics System And Was Awarded An Award From Forbes. Forbes Cio Innovation Award.
  6. Speedy Delivery: Timely Deliveries Consistently Is An Important Advantage. UPS Simplifies Its Operations With Handheld Devices That Are Simple To Communicate, Scan Packages, Signatures Of Customers As In Addition To Complex Automation, Such As Its Gps Navigation And Reroute Technologies. All Of These Operations Strategies Help Ensure That UPS Is Able To Deliver Faster Than Its Competitors.
  7. Competitive Costs: Offering High-Quality Service At Affordable Costs The Most Effective Method To Keep Customers. In The Delivery And Logistics Process, UPS Offers Competitive Prices For Shipping OvernightAnd In All Other Types Of.

UPS SWOT Analysis – UPS Weaknesses

  1. Reliance On The Us Market: Even Although UPS Operates Worldwide However, It Heavily Relies on Its Us Market. In The Year 2019, Us Domestic Package Delivery And Freight Brought In $58.6 Billion, While International Delivery Generated $15.41 Billion. In The Event That There Is A Chance That The Us Market Slows Down Because, Of The Economic Downturn, UPS Will Be Adversely Affected.
    Image Source: UPS Annual Report
  2. Adverse Financial Impact During The Peak Holiday Season: For UPS To Be Able To Keep Pace With The Demand And To Deliver On Time During The Demand Online Shopping Seasons The Company Must Spend Much More Than Usual Times. The Massive Amount Required To Manage As High As More Than Twice The Typical Daily Volume Of Packages Can Impact The Financial Performance Of The Company, Allowing It To Benefit The Most By The Peak Holiday Seasons.
  3. Operational Issues Management Has Put Off Upgrading Of Delivery And Equipment Systems For Years. Utilizing 19Th Century Infrastructure In The Fast-Paced Modern World In The 21 Century Century Is Challenging, However Modernizing The Systems Is Expensive. $20 Billion That Is Roughly 5 Years Worth Of UPS Profits.
  4. Poor Safety Of Employees: Poor And Unsafe Working Conditions Undermine Morale Efficiency, Productivity, And Morale Of Employees. There Have Been Numerous Instances Of UPS Employees Getting Injured, As Well As The Death Of One Employee Was Killed After Contracting The Virus Covid-19..
  5. Inflicting A Burden On Purchased Transportation Costs: The Delivery Business Is Greatly Affected By Transportation Costs. The Cost Of Transportation Is The Result Of UPS Employs Third-Party Transportation Companies. About 19 Percent Of UPS Operating Expenses Are Devoted Towards Purchasing Transportation During 2019, The Year Of Fiscal. If The Cost Of Transportation Continues To rising, UPS Can Lose Its Profit Margins.

UPS SWOT Analysis – UPS Opportunities

  1. Drone Tests: UPS Has Been Testing And Expanding Its Drone Delivery Capabilities. UPS Test Its Drone Delivery Service On Wake Med Hospital Campuses By Transporting Laboratory Samples Through Various Campus Structures.
  2. Improve E-Commerce Operation: The E-Commerce Industry Is Growing Quickly As The Emergence Of New Companies Entering The Market Regularly. This Industry Is Dependent Upon Delivery Companies That UPS Is Able To Benefit By Strengthening Its E-Commerce Services And Operations.
  3. Expand By Mergers And Acquisitions Mergers And Acquisitions Enable Firms To Grow Quickly To New Market. Even Although UPS Did Not Manage To Penetrate The European Market In Full After The Fallout Of Its Attempt To Join Forces Together With Tnt Express, It Could Acquire Small European Logistics Firms To Expand The Size Of Its Percentage Of The Market.
  4. Diversify Portfolio: There Are Three Primary Business Segments That Are Part Of UPS Operations. In One Instance, UPS Is Possible To Diversify Into The B2C Retail Sector Of E-Commerce To Support Small And Medium-Sized Businesses (Smbs) As Well As Using Its Vast Global Network Against Their Competitors.In The Report On The Fiscal Year Of 2019, UPS Revenue Share Of Its Three Main Business Segments Is As In The Following Order:
    • Domestic Package: 62.7% ($46.49 Billion)
    • International Package: 19.2% ($14.2 Billion)
    • Supply Chain & Freight: 18.1% ($13.38 Billion)
      Image Source: UPS Annual Report
  5. Expand The Market: UPS Operates Primarily As A Delivery Service For Businesses(B2B As Well As B2C) For Online Retailers Such As Amazon Even Although The Number Of Regular Customers Using Delivery Services Is Growing Rapidly. The Company Can Drive Its Expansion By Expanding Its Market To Include Consumers Of All Ages.
  6. Expands To Seven-Day Delivery: UPS Is Now Offering An All-Day Delivery Service. In The Past, UPS Pickup And Delivery Service Were Available For Six Days (Monday To Saturday). In Light Of The Rise In Online Shopping And The High Expectations Of Customers, UPS Has Added Delivery On Sundays.

UPS SWOT Analysis – UPS Threats

  1. Intense Competition: With Fierce Opposition With FedEx, Dhl, Amazon, Yrc, Old Dominion, And Many Others The Profit Margins And Market Share Of UPS Are Constantly Under Threat.
  2. Dependence On One Client “Amazon”: Ecommerce Giant Amazon Was Responsible For Around 11.6 Percent Of UPS’S Revenue In The Year Of Fiscal 2019. In The Event That Amazon Prepares To Compete With Amazon In The Field Of Transportation And Delivery, Trying To Compete With Amazon With UPS In The Delivery And Transportation Services, UPS Revenue Can Be At Risk Due To Any Shift In Their Relationship With Amazon.
  3. Trade Tensions: Since UPS Is A Worldwide Company Its Reliability, Sustainability, And Profit Of UPS Depend On The Revenue Generated From Various Regions. This Is Why The Trade Wars are An Enormous Risk To The Business.
  4. The Risk Of A Strike: Even Though UPS Employees Haven’T Been In Strike Since 1997, The Dangers And Challenges Of Battling The Pandemic And Numerous Contractions Have Fueled Anger And Discontent Among The Workforce. A Strike Of Just A Few Minutes Could Cost The UPS Millions.
  5. A Looming Recession: This Pandemic Brought Destruction And Devastation Across The Globe, With A Number Of Countries Already In The Recession. UPS Has Trimmed Its Forecast For 2020’S Earnings After Reporting An 13% Decline In Profit During Its First-Quarter. If The Recession Becomes Severe, The Company Could Suffer A Greater Decline In Profit.
  6. Global Pandemic: UPS Earnings Are Expected To Fall By 7%In The Full Year 2020, As It Brought Globe To A Standstill. If There’S A Subsequent Round, UPS Could Lose Even More.


UPS Is The Most Extensive Parcel Delivery Company In The World. The Company’S Services Are Now Available In 220 Countries. The Company Is Financially Stable And Is In Good Shape To Grow. However, It Relies Heavily On The Us Market For Its Revenue. Us Makes Up Over 70% The Revenue. The Pressure To Compete In The Market Has Also Increased And Has Resulted In Higher Operating Expenses. 

In Order To Grow More Quickly, UPS Should Remain Focused On Customer Service And Innovation. The Trust Of Its Customers Is The Main Strength And Has Allowed The Company To Gain A An Upper Position. The Tech’S Role Will Be More Important. UPS Has Developed A Range Of Solutions To Businesses That Have Become An Ideal Partner In Supply Chain Concerns. The Company Must Increase Its Investment In Employee Engagement In Order To Improve Efficiency And Productivity.

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1 thought on “UPS SWOT Analysis 2021 – United Parcel Services, Inc.”

  1. This company is the best company to work for in the DFW area. Great service and very respectful happy employees. I have done seasonal work for them since 2014 and have so much fun.Thank you UPS


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