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Introduction This report analyzes UPS a US package delivery company First UPSs internal strengths which are the companys tangible and intangible resources and capabilities will be evaluated by using the VRIO framework model Secondly UPSs value chain system will be analyzed Third UPSs internal weaknesses will be evaluated Also UPSs business-level strategy is analyzed Lastly the report will end with a recommendation based on UPS relative market position based on internal and external environments Tangible ResourcesSome of UPSs tangible resources are their communication equipment such as their telematics system including information technology such as their Delivery Information Acquisition Device transportation methods for both air and ground and their sorting facilities United Parcel Services Inc 2013 These tangible resources are valuable because it helps UPS efficiently run their business by monitoring logistic data to further enhance their delivery process by cutting down costs and satisfying customer needs UPS currently owns 96173 package cars vans tractors motorcycles including 2745 alternative-fuel vehicles and 1907 air hubs UPS Fact Sheet nd However they are not rare resources or it is difficult to be imitated by competitors For example UPSs closest competitor FedEx currently owns More than 90000 motorized vehicles 1200 stations and 10 air express hubs Fact Sheet 2013 Although the company is organized well to draw value from their tangible assets they only have a competitive parity in the industry See Exhibit 1 Intangible ResourcesUPSs brand name is valuable to the company Along with their slogan of what can brown do for you and we logistics Brady 2010 UPSs brand value is rare to the industry and it is hard to imitate because their brand name is well known globally it takes time to develop a good brand reputation which in return attracts customers and creates customer loyalty Keeping we logistics in mind UPS reconfigured outbound distribution to major manufacturers to retail outlets by implementing customized tracking systems to decrease delivery time Therefore UPSs brand name
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