UPS (United Parcel Service)

Porter's five forces

Rivalry: there is intense competition within the courier industry. The stiff competition stems from the low number of firms in the industry. The major two competitors control almost sixty percent of the market share with the remaining minor competitors controlling the remaining percentage.

Buyer power: the bargaining power of consumers in this industry is low. Producers have a tendency of threatening companies through forward integration. Producers might take their own retailing and distribution. The industry has many buyers and no single buyer controls the price of products (Khanna & Bullock, 2010).

Threat of new entrants: the courier business is challenging to enter. Entry barriers in the industry are steady and low. Companies operating in this industry rely on skilled personnel. Employees in the delivery department must have a commercial driver's license while delivery systems require high-level capital investment to confirm deliveries and track...
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