The UPS Store Production: Demand Changing
The United Parcel Service is a leading American package services company that provides the customers from all over the world with such printed materials as business cards, flyers, envelopes, etc. The products fall into a category of highly usable facilities among the customers of various backgrounds. Still, there are always such factors as price changes, advertising peculiarities, or information technologies development that can lead to the UPS demand alterations. Thus, according to Howard, there is a tendency for the clients to give preference to the progressive digital package deliveries. An example of such a program is Uber.
The mobile innovation draws the attention of the customers, due to its portability and usage convenience (par. 1). There is always a chance of demand increase as well. For instance, successful advertising can become a primary reason for the company’s revenue expand. Due to Riley, online advertisement costs overtook television outlay in 2009 (par. 13). Therefore, efficient Internet blasting can turn the UPS Store into a leading on-demand company.
Supply Variations
Changes in the UPS supplies can be imposed by multiple factors. For instance, a supply increase can depend on the improvement of packaging technologies while its decrease can be stipulated by the heightened taxes on paper or other facilities that are used by the company. Nevertheless, it has to be noted that any input changes can produce a positive impact on the store’s production. Due to Bertie and Matthew, decreases in supply enhance the level of the management’s control activities and extends the company’s knowledge base since there appears a need to search for innovative solutions (47).
Interrelation Between Demand and Quantity
In contrast to supply and demand changes, and alteration in quantity relies on a product’s price. The expansiveness of the UPS products can lead to the company losing a big part of its customers. Consequently, there is a decrease in demand. The quantity change can evoke a demand increase as well if the company lowers the prices for its services (Agbe par. 2). The relation between the prices and selling rates can be demonstrated with the help of graphical demand curves. If the quantity demand curve appears to be negative for the UPS store, one of the possible reasons can be rooted at heightened prices for such supplies like paper, plastic details, etc.
The issue is closely interrelated with the store competitors’ achievements and progress. For instance, if the quantity demand shows adverse results and the sails of the UPS go down, it can be stipulated by the fact that such packaging corporations as FedEx or Purolator lowered the prices for their production. Consequently, UPS’s services can appear too costly for the clients at this stage.
The UPS Demand Elasticity
The concept of elasticity underlines the nature of relationships in supply chains (Zomorrodi and Fayezi 452). Thus, elasticity illustrates the customer’s perception of the company’s product as well as responsiveness to the quality changes. Since the UPS services’ popularity is gradually decreasing, due to the introduction of such digital substitutions as Uber, an increase in price for the UPS production would rather lead to revenue shortage. Thus, the store’s demand flexibility can be described as inelastic. According to Desmet and Parente, an extension of goods variety can result in elasticity rise (319). Therefore, the ultimate challenge for UPS management is to adapt its services to the needs of modern customers and to support its production with high-tech facilities.
Works Cited
Agbe, Chris. What Demand Is in Economics; Determinants of Demand (Factors Influencing Demand). 2011. Web.
Bertie, Greer and Ford Matthew. “Managing Change in Supply Chains: A Process Comparison.” Journal of Business Logistics. 30.2 (2009): 47-57. Print.
Desmet, Klaus and Stephen Parente. “Bigger is Better: Market Size, Demand Elasticity, and Innovation.” International Economic Review. 51.2 (2010): 319-333. Print.
Howard, Rob. Why Uber and Other On-Demand Companies Will Struggle with Package Delivery. 2015. Web.
Riley, Geoff. Shifts in Market Demand. 2014. Web.
Zomorrodi, Maryam and Sajad Fayezi. “Understanding the Concept of Elasticity in Supply Chain Relationships: An Agency Theory Perspective.” Asian Journal of Management Research. 1.2 (2010): 452-472. Print.