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UPS and TNT Express Business Model
Finance & Accounting
Pages 6 (1506 words)
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.
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). ...
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