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United Parcel Service (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

United Parcel Service 

UPS provides transportation services, primarily domestic and international letter and package delivery. Through its non-package subsidiaries, it also provides specialized transportation, logistics and financial services. The company is one of the largest package delivery companies in the world, in terms of both revenue and volume. UPS is also one of the leading providers of less-than truckload transportation services. The company’s large scale of operations enables it to serve a broad customer base across the major international markets. However, the increasing fuel prices are likely to have a direct impact on the company’s profit margins by causing an increase in the operating expenses of UPS.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor






  • Strong market position
  • Broad portfolio of services
  • Strong revenue growth


  • Sharp decline in operating efficiency and weak returns
  • Relatively low employee productivity



  • Geographical expansion
  • Expanding Chinese market
  • Online shopping


  • Volatile oil prices
  • Economic slowdown in the US
  • Labor issues
  • E-substitution
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