International Strategy of United Parcel Service

The largest package delivery company and a global leader in supply chain services, United Parcel Service (UPS), was founded on 28 August 1907 in Seattle, Wash by 19-year-old&nbsp. Jim Casey&nbsp.and 18-year-old Claude Ryan as American Messenger Company. By the time, it progressed and expanded and now it is the world’s largest package delivery company. UPS employees about 415,000 people including 343,000 U.S. citizens and 70,000 International. Serving in more than 200 countries and territories, its total number of customers touches 8 million. In 2008, UPS delivered an average of 15.5 million pieces per day worldwide and earned revenue of $51.5(b). UPSs key services include logistics and distribution, transportation and freight, freight forwarding, international trade management, and customs brokerage. UPS leads in providing less-than-truckload and truckload services coast-to-coast. UPS is running the 9th largest airline in the world with an AA balance sheet credit rating. (UPS Fact Sheet).

Going global creates opportunities for companies to grow in new markets. One of the most important and difficult task for the top management is to create effective strategies for the company and more difficult is the creation of an International Strategy. Basically, UPS was involved only in the movement of goods, but by the time, it understood the new trends of markets and started providing various services including logistics and distribution, international trade management, customs brokerage, consulting, mail, e-commerce, and a variety of financial services.

If we look into the history of this company, we will come to know that UPS has never stopped improving and expanding its businesses. UPS fully understands the importance of Global trade in the present scenario of recession. CEO of UPS, Scott Davis, considers reliance on global trade essential and said that it is a “positive force” at a time when “we are operating without a map and without precedent.” (No Economic Recovery Without Global Trade, 2009)