In ‘Tool 4B’, I have presented eight different key success factors against which UPS and ‘Transportation & Logistics’ industry are measuring their performance. For competitive advantage analysis, in this tool, only six key success factors, out of eight, have been picked. The assumption is that the performance against these six factors is more critical in determining a company’s specific position within the industry than the performance against rest of success factors that are left out. Key Success Factors Weight Assigned
Global Network/ Global Presence/ Market Share 20%
Service Quality (Reliability/ Visibility/ Speed) 20%
Operating Efficiency 20%
Financial Strength (Financial Capacity for Expansion) 15%
Price Competitiveness 15% …show more content…
Global networks provide double benefits in this regard: at first it lets companies to work with a larger volume to keep per unit costs low and secondly, it opens the way to the emerging markets with high growth potentials. UPS, DHL, and FedEx are well ahead of rest of the competition in this measure. All these three companies operate in 220 countries across the globe and in most of the regions and countries they have established their own network and in other regions they partner with independent transportation, warehouse, collection, and distribution service providers. For comparative analysis of market shares, see: Exhibits 11, 12, 13, and 14.
Service Quality (Reliability/ Visibility/ Speed) (Neither)
UPS compete with equally accomplished companies like DHL and FedEx in maintaining reliability, visibility, and speed of their services, which is one of the most important success factors in this industry. These three companies are ahead of rest of competition in this measure. Operating Efficiency (Opportunity and strength)
In 2010-2014 periods, UPS has the most superior operating effectiveness. In some of the business segments FedEx is equally good (like express courier) but it falls behind UPS in the rest and overall companywide operating efficiency
Global Network/ Global Presence/ Market Share 20%
Service Quality (Reliability/ Visibility/ Speed) 20%
Operating Efficiency 20%
Financial Strength (Financial Capacity for Expansion) 15%
Price Competitiveness 15% …show more content…
Global networks provide double benefits in this regard: at first it lets companies to work with a larger volume to keep per unit costs low and secondly, it opens the way to the emerging markets with high growth potentials. UPS, DHL, and FedEx are well ahead of rest of the competition in this measure. All these three companies operate in 220 countries across the globe and in most of the regions and countries they have established their own network and in other regions they partner with independent transportation, warehouse, collection, and distribution service providers. For comparative analysis of market shares, see: Exhibits 11, 12, 13, and 14.
Service Quality (Reliability/ Visibility/ Speed) (Neither)
UPS compete with equally accomplished companies like DHL and FedEx in maintaining reliability, visibility, and speed of their services, which is one of the most important success factors in this industry. These three companies are ahead of rest of competition in this measure. Operating Efficiency (Opportunity and strength)
In 2010-2014 periods, UPS has the most superior operating effectiveness. In some of the business segments FedEx is equally good (like express courier) but it falls behind UPS in the rest and overall companywide operating efficiency