Competitive Advantage: Ups

Table of Contents

1. Introduction

Page 3

2. Competitive Advantage

Page 4

3. United Parcel Service

Page 7

4. Conclusion

Page 10

5. References

Page 11

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1. Introduction

Competitive advantage is defined by a multitude of academics, certainly not

limited to those offered in lecture notes;

“The significant advantages that an organisation has over its competitors.

Such advantages allow the organisation to add more value than its

competitors in the same market” (Lynch, 2009)

“Delivering superior value to customers and in doing so earning an above

average return for the company and its stakeholders ” (McGee et al, 2005)

“a position of enduring superiority over competitors ”

“=product excellence x process excellence” (Christopher, 2005)

Perhaps a business perspective is more urgent in its message; “you have an

economic castle in a capitalist world, where everyone is tr ying to take your castle”, to

which it’s sustainability is paramount to create a “durable advantage” , thus “Build a

moat” and keep it going. (Warren Buffet)

This report considers the condition of “out of the box” text book competitive

strategy and identifies its followers and indeed some of its hecklers of the average

performance it bestows.

W e will then examine and explore the case of UPS and discover which

traditional generic strategy is suitable.

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2. Competitive Advantage

The work of M. Porter is the market leader in this subject with particular

reference to the three most widely read books on co mpetitive analysis in the 1980s;

Michael Porter’s Competitive Strategy (Free Press, 1980), Competitive Advantage

(Free Press, 1985), and Competitive Advantage of Nations (Free Press, 1989). In

the generic strategy framework, there are two common choices, to become a cost

leader, achieved through economies of scale or the opposite and differentiate its

products. By applying these strengths in either a broad or a narrow scope, three

generic...