BUSINESS MODEL OF UPS
GROUP 18
! NEVEREVER !
Ryan Detweiler
Michelle Fisher
Michael Hines
Bora Karaoglu
Neslihan Kucukates
Murat Omural
Sezin Umar
Feyzettin Yilmaz
SHORT COMPANY HISTORY
COMPANY WEBSITE CRITICS
ASSUMPTIONS
VALUE PROPOSITION
ONLINE OFFERING
RESOURCE SYSTEM
FINANCIAL MODEL
CONCLUSION
SHORT COMPANY
HISTORY
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United parcel service is founded during the period 1907-1912 in
America to cover the need of private messenger and delivery
services.
The company made its first expansion beyond Seattle to Oakland in
1919 and chose its present name, United Parcel Service.
1924 was the year of UPS’ debuting of the technological innovations
that would shape its future.
UPS became the first package delivery company to provide air
service via privately operated airlines in 1929.
In 1953 UPS resumed air operations by offering two-day service to
major cities on the east and west coasts.
By 1985, UPS Next Day Air service was available in all 48 states
and Puerto Rico.
SHORT COMPANY
HISTORY GO ON
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In 1985 UPS started international air service between the United
States and six European countries.
In 1989, domestic air service was added in Germany.
By 1993 UPS was delivering 11.5 million packages and documents
a day for more than one million regular customers.
In 1994, UPS.com went live and consumer demand for information
about packages in transit soared.
In 1995 UPS formed UPS Logistics Group to provide global supply
chain management solutions and consulting services.
In 1998, UPS Capital was founded to provide a comprehensive
menu of integrated financial products and services, which enabled
companies to grow their business.
COMPANY WEBSITE
CRITICS
ADVANTAGES;
USER-FRIENDLY
EASILY ACCESSIBLE
PROVIDES LINKS
LOADS FAST
AVAILABLE ANYTIME
COMPANY WEBSITE
CRITICS
DISADVANTAGES;
TOO FORMAL
NOT ATTRACTIVE
ENOUGH
REGISTRATION TAKES
LONG
ASSUMPTIONS
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UPS has several sub companies
References are generally from www.ups.com.
We cannot test the truth of information.
We neglected changes during last year.
We used generally data of US for finance; it may
change for UPS worldwide.
For the analysis of business model, we thought
general work of UPS.
At online offering part, we assumed that there is
a strong competition
VALUE PROPOSITION
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CUSTOMERS
PRODUCTS & SERVICES
MARKETS
TECHNOLOGY
SUSTAINABILITY, PHILOSOPHY & SELFCONCEPT
· CONCERN FOR PUBLIC IMAGES
CUSTOMERS
Customer benefits from many things at UPS
like: just in time and hand-to-hand
transportation systems. Moreover small
shifts more frequently of UPS make
customer benefit increase with 1.3 million
packages and documents international and
13.6 million packages and documents in
USA.
PRODUCTS & SERVICES
As a delivery company, UPS service as;
Key Services;
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Logistics and distribution
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Transportation and freight (air, sea, ground, rail)
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Freight forwarding
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International trade management and customs
brokerage
Specialty Services;
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Service parts logistics
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Technical repair and configuration
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Supply chain design and planning
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Returns management
Urgent parts delivery
MARKETS
*Africa
*North America
*South America *Europe
*Asia
*Caribbean
*Middle East
*Central
America *Australia/New
Zealand
TECHNOLOGY
Electronic Data Process (90 % of all shipments)
Unique Network Structure
88000 package cars, vans, truckers and
motorcycles
257 Jet Aircraft
326 Chartered Aircraft
Other Investment of technology ($ 600
million)
ONLINE OFFERING
Scope
of Offerings
Customer Decision
Processes
Scope of Offerings
Some of the features that UPS offer online are as follows:
 UPS Signature TrackingTM Tool - obtains valuable Proof of Delivery
information including a digitized signature and delivery address
 UPS Rates & Service Selection Tool - lets online shoppers compare
prices and select shipping services
 UPS Time in Transit Tool – enables customers to compare the
speeds of different UPS shipping services to everywhere UPS
delivers around the world
 UPS Address Validation Tool- ensures that customer-entered
shipping addresses are correct at the time of order
 UPS File Download for Quantum ViewTM Tool - automates retrieval
of Quantum View files, which can then be integrated into back-end
systems
 UPS Tracking Tool - provides up-to-the-minute package status to
your customers
 UPS Shipping Tool - brings UPS Web-based shipping to employees'
desktops.
ONLINE OFFERING
Some examples of the partnerships
it will have to develop include:
IInternet Service Provider (ISP)
PPackaging supplies company
TTransportation providers
GGas/diesel company
CCredit card approval company
RRoute planning software
SSupply chain/logistics
businesses
FINANCIAL MODEL
Financial Highlight of UPS
· REVENUE MODEL
· SHAREHOLDER VALUE
MODEL
· GROWTH MODEL
SHAREHOLDER VALUE
MODEL
1,533,333,334 shares of Class A-1
Common Stock
1,533,333,334 shares of Class A-2
Common Stock
1,533,333,334 shares of Class A-3
Common Stock
5,600,000,000 shares of Class B
Common Stock
200,000,000 shares of Preferred Stock
CONCLUSION
 UPS
has a business to costumer (B2C)
model relying on balancing economic,
social and environmental objectives.That
makes also crucial for its employees,
customers, communities and
shareholders.
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