Competitive Strengths

Growth Strategy

Competition

UPS is the world's largest package delivery company, in terms of revenue and volume, and a global leader in supply chain solutions. We deliver packages each business day for 1.8 million shipping customers to 6.1 million consignees in over 200 countries and territories. In 2008, we delivered an average of 15.5 million pieces per day worldwide - or 3.9 billion for the year. In addition, our supply chain solutions capabilities are available to clients in over 180 countries and territories.

Although our primary business is the time-definite delivery of packages and documents, we have extended our capabilities in recent years to encompass the broader spectrum of services known as supply chain solutions, such as freight forwarding, customs brokerage, fulfillment, returns, financial transaction and even repairs. We are also a leading provider of less-than-truckload transportation services.

Competitive Strengths
Global Reach and Scale. We believe that our integrated global ground and air network is the most extensive in the industry. It is the only network that handles all levels of service (express, ground, domestic, international, commercial, residential) through one integrated pickup and delivery service system.

Technology. We are a global leader in developing technology that improves our customers' business processes.

Broad, Flexible Range of Services and Integrated Solutions. Our portfolio of services enables customers to choose the delivery option that is most appropriate for their requirements.

Customer Relationships. We focus on building and maintaining long-term customer relationships by treating each customer as if they were our only customer.

Brand Equity. We have built a leading and trusted brand in our industry - a brand that stands for quality service, reliability and product innovation.

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 facilitate employee stock ownership, we maintain several stock-based compensation programs.

Financial Strength. Our balance sheet reflects financial strength that few companies can match.

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Growth Strategy
Our growth strategy takes advantage of our competitive strengths while maintaining our focus on meeting or exceeding our customers' requirements. The principal components of our strategy are:

• Build on our leadership position in our U.S. business
• Continue international expansion
• Provide comprehensive supply chain solutions
• Leverage our leading-edge technology
• Pursue strategic acquisitions and global alliances.

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Competition
We are the largest package delivery company in the world, in terms of both revenue and volume. We offer a broad array of services in the package delivery industry and, therefore, compete with many different local, regional, national and international companies. Our competitors include the postal services of the United States and other countries, various motor carriers, express companies, freight forwarders, air couriers and others.

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