The Strength of the Brown in Freight Market

Strength of the Brown in Freight Market

By

Aaron B. Taylor

FIN301

United Parcel Service (UPS) has been in the package delivery service for many years. Starting as an messenger service by two teens has grown to a world-wide company delivering packages world-wide. Over the last years UPS has expanded their operations from just package delivery to also freight. To continue grow and compete in multiple markets UPS should work to grow strong in the freight delivery market. There are things to consider in the ever expansion into the freight market. Considerations should include the risks, costs, politics or acceptance by investors and the public. These issues are among the many but are some of the biggest ones considering there is great competition out there to contend with.

Over the years the market has grown with many competitors, and each customer is important for the company that gains them. UPS has done well competing against and growing in new markets by taking risks. To mitigate those risks UPS has expanded into the markets in a smart way taking the risks but still being strong in the markets it dominates. Years ago started taking risks and moved from just package delivery over to the freight delivery business. It started by acquiring companies like Overnite and using their routes and customers to expand into the freight market. Though they made one big risk and that is use their name to move into the freight market. This tough because of strong competitors in the market like Yellow Freight and even its biggest competitor in the package market FEDEX. UPS has made this possible through the use of their current network of distribution centers for their letter delivery service. This helps UPS to compete with other companies like Swift and Schneider both which their primary market is truckload freight services.

The cost for the endeavor of UPS movement in the freight and the trailerload market can be costly and difficult to...