The United Postal Service is an independent government agency that provides mail processing and delivery services for individuals or business organizations in the United States.
Analyzing the company using competitive forces takes into consideration factors such as bargaining power of the consumers and suppliers, threat of substitutes, new entrants in the market and also the existing competitors. The success of the company largely depends on the consumers and this has prompted the UPS to foster or promote long term relationships with its clients. This, therefore, shields the organization from new entrants in the market and also enables the organization to continue enjoying and safeguarding its market share thus still enabling the company still stay ahead of the competitors.
The value chain model involves the process of adding value to the existing products and services so as to increase customer satisfaction. This model includes various steps but the first step involves identifying the various ways used to serve or provide the products or service to the clients. Secondly the managers need to figure out how these operations can be improved so as to provide customer satisfaction. Example here UPS has automated its operations and this provides efficiency and saves on time hence attaining the objective of providing quality products and services to the clients. After putting down of strategies to improve delivery of the service or product evaluation and planning process next .Evaluation assesses whether or not the new strategies put in place have yielded the desired output.
UPS business strategy first focuses on cost cutting as it embarks on its business operations and secondly, embarks on revenue increasing business ventures. This is mainly because companies have more control over their costs than the revenues.
Technology has played a big role in the implementation and eventual success of this business strategy. Use of self service applications example UPS Trade has not only improves customer satisfaction but also reduced the operation costs. The automation of operations has increased online orders hence increasing overall revenues of the service.
Performance of UPS in the last two years shows a steady decrease in the overall operation costs hence enabling the company increase their profit share. There has also been a decrease in the mail volumes as more and more people are opting to use electronic forms of communication. The first class mail which provides the postal service with a large percentage of the total revenue has also been declining over the two years. On the positive side, however, the use of online deliveries, however is still high been an increase in shipping and packaging hence, enabling the organization to still strike a balance.
On offer of customer services due to continuing use of technology in the daily operations, the services offered by the service are now more efficient, costumer friendly and easy to manage. This makes the UPS stay ahead of its competitors. The organization has a different market niche from most of the competitors in the market as business organization form bulk of its consumer share.
The industry leader in the market continues to be electronic forms of communications. This is because this type of communication is fast than the postal service as messages can be sent instantly and also electronic form of communication costs less than the postal services. Another reason is that electronic form of communication is mostly preferred by the younger generation and since they form a large percentage of the overall population then electronic communication therefore stands as the market leader.
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