UPS’s Billion Dollar Investment Into the Future.
After Netherlands denies a merger deal with UPS that entails one of the largest carriers in Europe, TNS, UPS announces its $1 billion investment within the European region. This can act as a major threat to the competitors in Europe and the major players but is also a huge risk that UPS may have taken in trying to compete for the leading carrier position.
According to the article “UPS to invest 1 billion in European logistics operations”, statistics show that demand for UPS has been rocketing within Europe and is a promising indicator that their decision to invest was a right one.
This investment that will last three to five years will help UPS expand their logistics centers mainly through acquisitions in the healthcare industry as medical supplies and products have always been a challenge to move around. UPS is searching for opportunity and going after it, and can even benefit much more than if they had merged with TNT.
The article continues to talk about UPS studying the market and its dynamic conditions to adapt to it and deliver a better service for the customer. Can UPS be the next Starbucks that is both a local and international favorite despite leading competitors? It will be interesting to see the results of this investment and how it will affect the market as well as the brand image. Will they be able to keep up with their standards or will they leave loop holes in their supply chain and operations?