On October 23rd, 2014, we updated our
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Strengths (contd.)• New and growing use of Technology• Three decades of Logistics Experience
Strategic Planning on Strengths• Meets needs for delivery • Includes overnight shipping• Independent Networks meet different customer needs• Sustain loyal relationships with customers and investors• Diversify the workplace
Weaknesses• Relative small size• Lower margin• Less competitive ground shipping
Relative Small Size• UPS is twice the size in terms of market capitalization• 2012 Revenue • UPS: $54 billion • Fedex: $43 billion
Lower Margin• Net Profit Margin 3.1% - 2012 Annual Report• Difficult to tackle rising fuel cost• Current investments yielding lower than cost of capital
Less Competitive in Ground Shipping
Strategic Planning• Enhance integration between air and ground shipping as well as information systems• Cut environmental costs and launch environmentally friendly campaign
OpportunitiesIntermodal Freight Shipping and Online ShoppingContainer Storage Globalization of tradeUse Cooperative Strategies Mergers and Acquisitions
Intermodal Shipping and Storage• Textainer Group Holdings and CAI International have seen a consistent rise in demand for container shipping and Storage.
Opportunities• Local Competitors with less-competitive service or products.• Cooperative Strategies in Foreign Countries• Acquire smaller companies to increase market share
Threats (contd.)• Online Competitive advantage of rivals• Increasing ease for companies to cut out “middle man”• Green initiators make it costly to keep up with standards
Threat Solutions• Ease into more electric transportation on domestic level• Offer deals to promote purchases with less concern for shipping costs• Market services better. Constantly improve customer service.• Stay ahead of competitors with online shipping technology and service• Improve areas that lead customers to shipping solutions other than FedEx• Comply with Green standards to cut costs and attract customers