In light of the emerging global marketplace and realities, UPS is following a strategy similar to many other international corporations who wish to retain competitive advantage, increase market share domestically and abroad, and increase profits. This strategy involves a number of different measures designed to keep UPS ahead of rival competitors FedEx and DHL. One of the strategies UPS is achieving to acquire this goal is the acquisition of other shipping companies and services, like its recent acquisition of Mail Boxes Etc. for $191 million (Hirschman Q1).
In addition to mergers and acquisitions intended to enhance product and service value, UPS is also acquiring other companies as an overnight means of extended its products and services lines. For example, the company recently entered a new niche with the acquisition of First International Bank, a financial services organization that specializes in government-backed industrial loans (Marlin 14). However, UPS’s strategy in this acquisition was the attractiveness of startup business-to-business (B2B) e-markets like e-Steel and Online Asset Exchange. Therefore, part of the strategy involves extended product and service lines, in addition to gaining increased access to the nascent and potentially lucrative e-Market. In other words, taking advantage of technology to increase market share and retain competitive advantage is also part of the strategy.
UPS’s strategy also involves making inroads into foreign markets, particularly lucrative ones like the Asian market which is loosening trade restrictions as it moves from primarily a planned economy to a market driven one. To this end, UPS has invested in the funding to open a sorting hub in the Philippines later this year, with the goal of “gaining a larger share of the small-package delivery market within Asia” (Hirschman F3). UPS is also bolstering its transportation infrastructure a
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