The paper "In-depth Capability Analysis of United Parcel Services " is a great example of a business case study. This essay is based on an in-depth analysis of the internal capabilities and resources of United Parcel Services (UPS), one of the leading global parcel delivery companies. The analysis is based on the Resource-Based Theory of the firm. Three issues are presented in the essay. First, a brief description of UPS and its operations is presented. This is followed by a detailed analysis of the internal resources and capabilities that the company has managed to develop over the course of time.
The identified resources and capabilities of the company are then analysed using the VRIO framework. This is based on the extent to which the capabilities of the company add value to customers, are rare, cannot be imitated easily and are embedded in the values of the organisation. UPS: A Brief Introduction UPS is a package delivery and general logistics company. Although founded in the United States as a small parcel delivery company 108 years ago, currently, the company maintains a wide range of logistics-related resources in all regions of the world (UPS, 2016).
For practical purposes, the company reports its operations based on two geographic regions: the domestic region, which is the United States and the international category, which comprises all the other parts in the world in which the company operates. UPS offers its customers three main types of services: the traditional delivery of packages within the United States market, the delivery of packages at the international level and the management of supply chain and freight operations for companies (UPS, 2015, p.
3). It is based on these three segments that the company reports its financial results. Importantly, the financial performance of the company has been relatively good over the recent past (UPS, 2015, p. 2). This has been reflected in the rate of growth of revenue, profitability and the speed at which the company is growing its services in the different regions in which it operates. UPS: Resources and Capabilities The resources and capabilities of UPS can be analysed using the Resource-Based Theory of the firm. The essence of this theory is that every firm has a number of different types of resources and capabilities which, when well-identified and used, can help the firm to gain and maintain a competitive advantage over its competition (Hubbard, Rice & Galvin, 2014, p.
107). Under this theory, the resources of a firm are defined as the intangible and tangible assets that are owned and controlled by the organisation (Gottschalk, 2005, p. 53). On one hand, tangible assets are mainly the physical assets that a company owns and which can be easily accounted for. On the other hand, the intangible assets of a firm comprise processes and values of the organisation which add value to the manner in which the organisation operates (Hubbard, et al. , 2014, p.
107). It has been noted that in many cases, intangible assets are more valuable and useful for organisations than tangible assets (Bridoux, 2010, p. 8). This implies that it is easier to explain the performance of companies by focusing on their access to intangible resources as compared to the intangible ones.
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