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Submitted by tatkinson725 on March 23, 2008
Category: Business
Words: 1148 | Pages: 5
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Industry External Analysis
Considerations of Macro Environment
Market Demographics: The target market is everyone in the world who needs to ship an item. Christmas time is a particularly busy time for shipping items across the world, whereas people need a company like UPS to do the delivering for them.
Economic: Gasoline prices, along with rising energy prices are the major concern. Jet fuel prices are at $2.80/gallon! However, many people would rather have items shipped rather than spend money on gas to go and buy the item.
Legal: International express services can be delayed by government policies and restrictions that can include anticompetitive practices of government-owned or authorized monopolies, licensing requirements, customs procedures, restrictions on access to aviation markets, restrictions on access to ground transportation systems, and restrictions on foreign investment.
Socio-Culture: The economy is really bad right now, so many people don’t have extra money to make a lot of online purchases and businesses are not selling as much, therefore not needing to ship as much.
Global: Worldwide packaging shipping volume is increasing as a result of global exchange, e-commerce, and changes in supply-chain management.
Technological: The internet has expanded the reach of direct marketing.
Industry Analysis:
Dominate Characteristics: With globalization, shipping is now a major priority for businesses and many individuals, especially those that use the internet to do a lot of shopping.
Driving Forces: Globalization and the internet, along with Christmas.
The Competitive Forces are: The biggest competitor is Fed Ex, and they cannot compare. UPS did 2.5 times the volume through its sophisticated delivery machine.
Rivalry in the Industry (Porter’s Five Forces):
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