UPS
Strategic Concepts & Mechanics
Primary Evidence
"Ron Wallace, author of Leadership Lessons from a UPS Driver writes, “We promote from within to ensure that the company can pass on our legacy and culture seamlessly from one generation to the next.”"
"In the Netflix example we see a feature of Scale Economies that recurs in many technology firms: a single fixed cost which declines per unit as it is prorated over higher and higher volumes. Beyond fixed costs, Scale Economies emerge from other sources as well. To name a few: Volume/area relationships. These occur when production costs are closely tied to area, while their utility is tied to volume, resulting in lower per-volume costs with increasing scale. Bulk milk tanks and warehouses would serve as examples. Distribution network density. As the density of a distribution network increases to accommodate more customers per area, delivery costs decline as more economical route structures can be accommodated. A new entrant competitor to UPS would face this difficulty. Learning economies. If learning leads to a benefit (reduced cost or improved deliverables) and is positively correlated with production levels, then a scale advantage accrues to the leader. Purchasing economies. A larger scale buyer can often elicit better pricing for inputs. For example, this has helped Wal-Mart."