Ups Key Success Factors

900 Words Jun 17th, 2011 4 Pages
UPS Key Success Factors:
The deliveries must be on time, there should be accuracy by way of deliveries, ownership of not only the land based vehicles but also airplanes are important for success. Key success factors include safe deliveries and an excellent reputation. Recently there are key success factors related to information. Accessing the UPS website gives critical information about the whereabouts of the parcel to any customer at a low cost. Information about the merchandise, customers and goods is critical for success. What are the key success factors and risks for UPS given its business strategy? Timely, accurate and competitively priced services are the key success factors for UPS. Moreover, the ability to provide low cost
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The return on Assets is 8.52% whereas the industry figure is 11.10%. Two of FedEx strategies that have worked are its tie up with the US postal system and its first mover advantage in introducing the tracking system for packages. My assessment of the sustainability of UPS's current performance does not change.
Given your assessment of the company's strategy and the sustainability of its performance, forecast the key factors for UPS's stock value? The original company strategy has been to deliver goods overnight. Time bound deliveries is its main selling point. It creates security in the minds of its customers by using the Guardian anti missile system on board its flight. FedEx offers a wide range of products that target customers with different needs. Federal Express has been the innovator in the strategy of allowing the customers to track their packages. This facility has developed great confidence in the system of FedEx. In fact, the tracking system of FedEx has forced other shipping companies also to use tracking systems. In promotions FedEx has adapted the strategy of using motor sports. The key factors for UPS's stock value are its size, the increasing revenues from its international operations and the increasing sales of its supply chain solutions. The investors are also impressed by the net profit of UPS that is 8.48 which is higher than the industry figure of 7.70. The return on assets is also 11.75 which is greater than
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