UPS: China 
Strategy 
UPS: The Logistical Leader
Sameer Mathur 
BuddingMarkets.com 
Indian Institute of Management, 
Lucknow 
Marketing Professor 2013 – 
Asst. Professor (...
Agenda 
1. Company Background 
2. Strategy in USA 
3. Global Strategy 
4. UPS in China 
5. Competition with FedEx
Company Background: 
United Parcel Service 
 World’s largest package delivery 
company 
 Recently involved in logistics ...
Growth & Expansion 
 Growth began primarily across U.S.A. 
 1975: First went international in Canada 
 1980s: Major exp...
Company Background: 
UPS Today 
 Service in over 220 countries and territories 
 2011 total revenue: $53.1 billion 
 Pa...
UPS Commercial
USA Strategy 
 UPS has fostered strategic focus around operational 
excellence 
 Renowned for its efficient/reliable del...
USA Strategy 
 Customer Intimacy 
 E-commerce 
 My Choice 
 Mail Boxes, Etc. 
 Aggressive investment 
 “The UPS Stor...
USA Strategy 
 Target market: small & medium sized enterprises 
(SMEs) 
 “We Love Logistics” communications program 
 V...
Global Strategy 
 UPS has transitioned from a leader in package distribution to a 
facilitator of global commerce 
 UPS ...
UPS in China: Why China? 
 As developed markets mature, there is huge potential for 
trade growth in emerging markets 
 ...
UPS in China: 
Overcoming Differences 
 Cultural differences 
 Hired local executives to leverage local knowledge 
 Adm...
UPS in China: 
Continuing to Pursuing Growth 
 Committed to large-scale growth globally 
 Expecting economic leader to b...
Competition 
Categories 
‘What can brown do for you?’ Slogan ‘The world on time’ 
‘Inspire our people & business 
partners...
Please Visit My Website 
Sameer 
Mathur 
BuddingMarkets.com 
Over 1 Million views 
from more than 100 countries 
Top 1% mo...
Upcoming SlideShare
Loading in...5
×

UPS: The Logistics Leader in China

1,706

Published on

Published in: Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,706
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
66
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide
  • Photo source:
    http://www.sentiell.com/Check-delivery-status-cabout-eng-37.html
  • Images:
    http://www.google.ca/imgres?q=james+e+casey&um=1&hl=en&client=safari&sa=N&rls=en&biw=1043&bih=642&tbm=isch&tbnid=wZTUMaCudm3CZM:&imgrefurl=http://en.wikipedia.org/wiki/James_E._Casey&docid=mxpFXSUgROK-hM&imgurl=http://upload.wikimedia.org/wikipedia/commons/4/49/James_casey.jpg&w=135&h=180&ei=jA96UPrELOyx0AGz54DgCA&zoom=1&iact=hc&vpx=119&vpy=189&dur=178&hovh=140&hovw=102&tx=92&ty=68&sig=112831834730837238563&page=1&tbnh=140&tbnw=102&start=0&ndsp=21&ved=1t:429,r:0,s:0,i:69

    http://www.google.ca/imgres?um=1&hl=en&client=firefox-a&sa=N&rls=org.mozilla:en-US:official&biw=982&bih=616&tbm=isch&tbnid=FCnQcjQ0yIc56M:&imgrefurl=http://www.inc.com/ss/evolution-corporate-logos&docid=t5pjvbzsJg5PxM&imgurl=http://www.inc.com/sites/default/files/imagecache/preview/slideshows/UPS-logo.jpg&w=619&h=357&ei=LBp6UOj2HeLH0QG4w4DgDQ&zoom=1&iact=hc&vpx=305&vpy=259&dur=3736&hovh=170&hovw=296&tx=160&ty=54&sig=118148901038630719073&page=1&tbnh=117&tbnw=192&start=0&ndsp=12&ved=1t:429,r:9,s:0,i:96
  • Image:
    http://www.google.ca/imgres?q=ups+airline&um=1&hl=en&client=safari&sa=N&rls=en&biw=1043&bih=642&tbm=isch&tbnid=cVufulgqS0X8jM:&imgrefurl=http://avstop.com/news_june_2010/nmb_denies_ups_airline_mechanics_release_from_negotiations.htm&docid=DHyFMoqJ_EX-gM&imgurl=http://avstop.com/news_june_2010/ups_aircraft.jpg&w=361&h=300&ei=ug96UOeYHebl0QHU3oDgCQ&zoom=1&iact=rc&dur=290&sig=112831834730837238563&page=1&tbnh=137&tbnw=167&start=0&ndsp=12&ved=1t:429,r:8,s:0,i:93&tx=103&ty=78
  • Source: http://www.pressroom.ups.com/Fact+Sheets/UPS+Fact+Sheet

    Photo:
    http://www.logisticsmgmt.com/article/ups_reports_strong_second_quarter_earnings/
  • Video: https://www.youtube.com/watch?v=OylxKnIAI08
  • Photo source:
    http://11even.net/2010/09/ups-express-delivery-speed-ambient/kreativ/

    http://www.everythingicafe.com/wp-content/uploads/2010/03/ups460.jpg
  • Images:
    http://www.google.ca/imgres?q=ups+my+choice&um=1&hl=en&client=safari&rls=en&biw=1043&bih=642&tbm=isch&tbnid=bHI0dfSho9cOcM:&imgrefurl=http://thedaddyyodude.blogspot.com/2012/06/ups-my-choice-providing-delivery-on.html&docid=h0MpsWW8yccDiM&imgurl=http://2.bp.blogspot.com/-OYJscRBciAg/T_WjiAPnWsI/AAAAAAAABG8/w5MU_jD17E0/s1600/MyChoice.jpg&w=600&h=391&ei=dw96UIf0BebG0QHng4CoBQ&zoom=1&iact=hc&vpx=370&vpy=153&dur=641&hovh=181&hovw=278&tx=168&ty=125&sig=112831834730837238563&page=1&tbnh=129&tbnw=198&start=0&ndsp=12&ved=1t:429,r:1,s:0,i:69
  • Photo source:
    http://upsstpete.com/freight-services-global/

    http://www.google.ca/imgres?q=ups+logistics&num=10&um=1&hl=en&client=safari&rls=en&biw=1043&bih=642&tbm=isch&tbnid=6aO7T0PdMqkimM:&imgrefurl=http://bounce.publishpath.com/logistics-is-a-lifesaver&docid=iXMqS-NxmhjbUM&imgurl=http://bounce.publishpath.com/Websites/bounce/images/blog/197150_199963043368359_131936043504393_592951_6705231_n.jpg&w=426&h=186&ei=YA96UIPRFsji0gGV7IGIDw&zoom=1&iact=hc&vpx=304&vpy=383&dur=130&hovh=148&hovw=340&tx=191&ty=81&sig=112831834730837238563&sqi=2&page=1&tbnh=125&tbnw=270&start=0&ndsp=13&ved=1t:429,r:10,s:0,i:96
  • Photo source:
    http://www.google.ca/imgres?um=1&hl=en&client=firefox-a&rls=org.mozilla:en-US:official&biw=982&bih=643&tbm=isch&tbnid=zfBHv-jQMKxTMM:&imgrefurl=http://www.futurebrand.com/work/featured-cases/ups/&docid=xP3ooL5yulIpfM&imgurl=http://www.futurebrand.com/wp-content/uploads/2009/09/we-UP-world.jpg&w=700&h=357&ei=7ih6UMyGFeaJ0QHsp4GIDQ&zoom=1&iact=rc&dur=313&sig=118148901038630719073&page=1&tbnh=134&tbnw=244&start=0&ndsp=12&ved=1t:429,r:1,s:0,i:69&tx=119&ty=49
  • Source:
    http://www.forbes.com/2006/09/29/china-shipping-ups-biz-logistics-cx_rm_1002ups.html

    Photo source:
    http://my.opera.com/saranayrose/blog/index.dml/tag/business
  • Photo source:
    http://theasiacareertimes.com/2011/11/ups-sees-jobs-in-asia-shifting-due-to-increased-labor-cost-in-china/
  • Source:
    http://www.forbes.com/2006/09/29/china-shipping-ups-biz-logistics-cx_rm_1002ups.html

    Photo source:
    http://www.inboundlogistics.com/cms/article/global-april-2012/
  • UPS: The Logistics Leader in China

    1. 1. UPS: China Strategy UPS: The Logistical Leader
    2. 2. Sameer Mathur BuddingMarkets.com Indian Institute of Management, Lucknow Marketing Professor 2013 – Asst. Professor (Marketing) 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009
    3. 3. Agenda 1. Company Background 2. Strategy in USA 3. Global Strategy 4. UPS in China 5. Competition with FedEx
    4. 4. Company Background: United Parcel Service  World’s largest package delivery company  Recently involved in logistics  Founded in Seattle, Washington in 1907 by James E. Casey as the American Messenger Company
    5. 5. Growth & Expansion  Growth began primarily across U.S.A.  1975: First went international in Canada  1980s: Major expansion across the globe UPS purchased its first aircraft for air delivery service in 1981 Company Background:
    6. 6. Company Background: UPS Today  Service in over 220 countries and territories  2011 total revenue: $53.1 billion  Package Operations: $44 billion  Supply Chain & Freight: $9.1 billion  8.8 million customers daily  Average of 32.1 million daily tracking requests
    7. 7. UPS Commercial
    8. 8. USA Strategy  UPS has fostered strategic focus around operational excellence  Renowned for its efficient/reliable delivery service
    9. 9. USA Strategy  Customer Intimacy  E-commerce  My Choice  Mail Boxes, Etc.  Aggressive investment  “The UPS Store” for 3,300 Franchises
    10. 10. USA Strategy  Target market: small & medium sized enterprises (SMEs)  “We Love Logistics” communications program  Value chain infrastructure largely comprised of companies UPS has acquired over years  Acquisition of Mail Boxes Etc. in 2001
    11. 11. Global Strategy  UPS has transitioned from a leader in package distribution to a facilitator of global commerce  UPS views whole world as a single market  Operations are standardized across regions  Aggregation  economies of scope
    12. 12. UPS in China: Why China?  As developed markets mature, there is huge potential for trade growth in emerging markets  China is known as “the world’s factory”  Transportation of goods between U.S.A and China growing rapidly  Intra-China market for express delivery expected to grow by 20% annually
    13. 13. UPS in China: Overcoming Differences  Cultural differences  Hired local executives to leverage local knowledge  Administrative differences  Joint venture with Sinotrans (1988-2001)  Customs brokers to keep up with changing customs laws  Granted license for domestic express services  Geographic differences  International air hub in Shanghai  Asia Pacific hub in Shenzhen
    14. 14. UPS in China: Continuing to Pursuing Growth  Committed to large-scale growth globally  Expecting economic leader to be Asia Pacific  UPS plans to acquire TNT Express  Goal to expand market presence in Europe and Asia
    15. 15. Competition Categories ‘What can brown do for you?’ Slogan ‘The world on time’ ‘Inspire our people & business partners to do their best, offering opportunities for personal development & success.’ Mission Statement ‘Customer requirements will be met in the highest quality manner appropriate to each market segment served. ‘ Customers Main focus Professionalism 15.8 million packages Ave. Daily Shipment 6.9 million packages 91% On-Time delivery 88% 103,922 fleet Total Fleet 22,694 fleet $45 billion USD Revenue $35 billion USD UPS My Choice Unique Services Customer Resource Center
    16. 16. Please Visit My Website Sameer Mathur BuddingMarkets.com Over 1 Million views from more than 100 countries Top 1% most viewed Over 250 presentations on Marketing www.BuddingMarkets.com

    ×