Ups Ipo

In: Business and Management

Submitted By donjony06
Words 1111
Pages 5
Rebeka Ramos
Panther ID - 1948265
ACG – 6175
Case 3: United Parcel Service’s IPO 1. How is UPS performing? Back up your assessment with your financial analysis. What factors are driving this performance?
Since it first opened for business 1907, UPS has proven to be a worthy competitor and more importantly a threat to be taken seriously. By 1999, after almost a century in business, UPS had captured 51% market share of the $43 billion dollar US package delivery industry. That same year they were named “Company of the Year” by Forbes and the “World’s Most Admirable Global Mail, Package, and Freight Delivery Company” by Fortune. They reported over $25 billion in revenue, which they attributed to their loyal employees, extensive geographical reach, and strong customer relations. They had become the largest parcel delivery company in the world, daily having contact with over 1.8 million customers, picking up 13 million packages, and making delivers to over 6 million business and residential addresses worldwide. Several key factors played a considerable role in UPS’ exceptional performance and industry success. For starters, UPS has always been committed to innovation, beginning as early as 1920 with its invention of the first ever-mechanical sorter and conveyor built system. UPS is also been credited with breaking new ground in delivery logistics, after creating the model for and implementing the practice of consolidating deliveries based on neighborhood groupings. However, the most significant innovation to date was when they spent over $10 billion dollars upgrading its infrastructure so that it could track packages precisely, deliver electronic proof of delivery, and manage shipments online. This sizeable investment also yielded a sophisticated IT system, which streamlined deliveries and allowed the integration of its air and ground operations. The…...

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