UPS 2015 Annual Report Download - page 24

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12
Competitive Strengths
Our competitive strengths include:
Global Network. We believe that our integrated global ground and air network is the most extensive in the industry. We
provide all types of package service (air, ground, domestic, international, commercial and residential) through a single pickup
and delivery service network. We also have extensive air freight, ocean freight, ground freight and logistics networks that
provide additional capabilities in the global transportation and logistics market.
Our sophisticated engineering systems allow us to optimize our network efficiency and asset utilization on a daily basis.
This unique, integrated global business model creates consistent and superior returns.
Global Presence. We serve more than 220 countries and territories around the world. We have a significant presence in
all of the world’s major economies.
Leading-edge Technology. We are a global leader in developing technology that helps our customers optimize their
shipping and logistics business processes to lower costs, improve service and increase efficiency.
Technology powers virtually every service we offer and every operation we perform. Our technology offerings are driven
by our customers’ needs. We offer a variety of online service options that enable our customers to integrate UPS functionality
into their own businesses not only to send, manage and track their shipments conveniently, but also to provide their customers
with better information services. We provide the infrastructure for an Internet presence that extends to tens of thousands of
customers who have integrated UPS tools directly into their own websites.
Broad Portfolio of Services. Our portfolio of services enables customers to choose the delivery option that is most
appropriate for their requirements. Increasingly, our customers benefit from business solutions that integrate many UPS
services in addition to package delivery. For example, our supply chain services—such as freight forwarding, customs
brokerage, order fulfillment and returns management—help improve the efficiency of the supply chain management process.
Customer Relationships. We focus on building and maintaining long-term customer relationships. We serve 1.6 million
pickup customers and 8.4 million delivery customers daily. Cross-selling small package, supply chain and freight services
across our customer base is an important growth mechanism for UPS.
Brand Equity. We have built a leading and trusted brand that stands for quality service, reliability and service
innovation. The distinctive appearance of our vehicles and the professional courtesy of our drivers are major contributors to our
brand equity.
Distinctive Culture. We believe that the dedication of our employees results in large part from our distinctive
“employee-owner” concept. Our employee stock ownership tradition dates from 1927, when our founders, who believed that
employee stock ownership was a vital foundation for successful business, first offered stock to employees. To encourage
employee stock ownership, we maintain several stock-based compensation programs.
Our long-standing policy of “promotion from within” complements our tradition of employee ownership, and this policy
reduces the need for us to hire managers and executive officers from outside UPS. The majority of our management team began
their careers as full-time or part-time hourly UPS employees, and have spent their entire careers with us. Many of our executive
officers have more than 30 years of service with UPS and have accumulated a meaningful ownership stake in our company.
Therefore, our executive officers have a strong incentive to effectively manage UPS, which benefits all of our shareowners.
Financial Strength. Our balance sheet reflects financial strength that few companies can match. Our financial strength
gives us the resources to achieve global scale; to invest in employee development, technology, transportation equipment and
facilities; to pursue strategic opportunities that facilitate our growth; to service our obligations; and to return value to our
shareowners in the form of dividends, share repurchases and steady share growth.