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UPS and TNT Express Business Model - Assignment Example

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UPS and TNT Express Business Model

Its market positioning among its competitors and the pricing criteria on the services and goods it trades on are the important factors of this element. United Parcel Services incorporation on this element regard on its business model can be contributed by its type of business and how it implements its business strategy.UPS incorporation is a business entity that engages primarily in delivering of packages and documents (Fairburn and Kay 1989). Also, in the recent periods, the firm has extended its service business to supply chain solutions that involves freight forwarding, customs brokerage, fulfillment, returns, financial transactions and even repairing services. The firm also, in extension offers less than truck transportation services where it is the leading provider in U.S market. The firm delivers to 6.1 million consignee worldwide, packages to 1.8 million shipping customers each day. Its supply chain services also, extend to clients in 175 countries (Libert and Samek 1997). The firm has invested in both ground and air network worldwide to offer its service deliveries to its customers under a single integrated pickup and delivery service structure. The firm has positioned itself in the market as the leading company by leading in technology development in order to improve service delivery among the global package delivery and supply chain management companies (Hubbard, 2001). The firm has a flexible scale of services and integrated solution that allows clients have an opportunity to choose the delivery service that will fulfill their intended requirement and the price they can afford from the variety of the services offered (Henry, 2002). The firm has invested a lot in equity branding by delivering quality services that are reliable and innovative products (Damodaran, 1997). This has been made successful through investing in employees by enabling them to have stock ownership in the firm. Thus, the employees dedicate their efforts in making the firm the best among the rest because they view the company as one of their own. TNT Express is involved in the service business of transferring documents and goods globally (Porter,1985). Service delivery is customer oriented because the clients are the one who selects the time and day when to pick up an order and when it should be delivered (Gropelli, 2006). The firms culture on being a robust and strong attitude and spirit of ‘can do’, has helped the employees in solving problems to carry out daily duties and responding to shareholders and the outside world of TNT Express. TNT Express positions itself in the market as the most admired delivery company by working on the core values of being a passionate company to its customers, people caring, keeping promises and working on mentality of I can do attitude. In order to achieve its values, the company has developed and implemented a TNT Express Integrity Program and an Introduced TNT Express Business Principles structures (Reish, 1988). Thus, the acquisition of TNT express will raise the new firm performance in the parcel and document transfer industry competitively because of the combined synergy that will be realized by the merger idea. Synergy of the new firm will be realized due to the market competitive each of the firm have in their respective domestic markets. UPS Incorporation as the leading industry player in North America will enable TNT Express services to be implemented in North America as it has rich information on how to penetrate the domestic ...Show more


A business model can be defined as the foundation of an organization in creating value and using part of it to make returns from its investment in and utilizing of resources. Business model makes a clear framework of what the business strategy is implemented by the firm’s activities…
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UPS and TNT Express Business Model essay example
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