UPS  Diversification Business Model

The diversification strategy model has been the best approach which has enabled the UPS Corporation to diversify into different fields of investment in various countries. It started as a small messenger and delivery company but it has grown to become one of the greatest recognized transportation and a multi-billion dollar company in the world (John, 2012). The corporation has committed to improvement of commerce throughout the globe through the use of the modern technology and other resources. The diversification model, the company has managed to acquire more than forty companies and has improved its customer services in order to support the customers who end up using its products and services.

The company is proud of being the leading provider of the electronic services, ocean ground and air while at the same time charging lower prices. The diversification strategy has enabled the UPS Corporation to offer similar services conveniently throughout the world despite the fact that they are locally operated and owned (John, 2012). Through the assistance of the diversification strategy the company has also managed to come up with an optimistic tone which has made it to be a leader in the transportation sector in the globe. The model is of great help to the company because it would enable it to expand globally to the countries which it has not yet been in position to offer the services. The company would also be in a better position to take advantage of the modern technology, be closer to the customers’ needs, create an efficient supply chain and create value to the products and services it offers in the global market.

The diversification model has also assisted the company to offer various products and services in the global market such as: customs brokerage, international trade services, finance, retail shipping, air freight and trucking. The company has been at a better position to manage the movement of funds, information and goods throughout its stores across the globe. The strategy has created a competitive edge over its competitors such as the FedEx which also offer similar services in the United States (John, 2012).  It is therefore product to comment that UPS has been successful in the United States economy and the globe through the use of the diversification model.  Since its initiation the company has remained stable and beneficial.

Reference

John, E. (2012). The Walt Disney : Its Diversification strategy. University of South Alabama press.