Mini$-$Case United Parcel Service $($UPS$)$: Serving the World with a SmileBusiness$-$level strategy, this chapters focus, describes actions a firm takes to compete successfully in a particular industry or industry segment by using its resources, capabilities, and core competencies to create a competitive advantage. United Parcel Service $($UPS$),$ the multinational shipping and supply chain management company, uses the integrated cost leadership$/$differentiation business$-$level strategy. Strategy has never been taken lightly for UPS. Monthly meetings of teams specifically formed to envision the future and assess decisions have always played a large role in UPSs approach to low$-$cost management and differentiation through quality customer service.UPS is led by CEO Carol B$.$ Tom$.$ Prior to joining UPS, she was executive vice president and chief financial officer of the Home Depot. Her first position at UPS was as vice president and treasurer. From a business$-$level strategy perspective, Home Depot is very much like UPSboth companies emphasize keeping operating costs low and customer service high. Consequently, her skills and experience make her an excellent choice to lead UPS. She also has a clear vision for the company. According to Tom$,$ UPS is a company with a proud past and an even brighter future. Our values define us$.$ Our culture differentiates us$.$ At UPS we are customer first, people led and innovation driven. The companys Customer First strategy is about providing the best digital experience to customers, making it simple to work with UPS, and removing any hindrances that interfere with an excellent customer experience. People Led means providing an outstanding employment experience and increasing the likelihood that an employee will recommend UPS as a great place to work. Innovation Driven pertains to implementing technology and productivity initiatives on an ongoing basis, and to providing high returns to shareholders.Although UPS prices remain reasonable because of competition in the industry, the company doesnt focus on price. We offer a relatively inexpensive service that can help customers ship packages practically anywhere. We promise great customer service and timely deliveries. Our prices have gone up in recent years in comparison to our closest rival FedEx, but our quality and service has not been diminished. With new technology we have been able to deliver products faster and more efficiently to your front door.It is important to remember that the low$-$cost portion of an integrated cost leadership$/$differentiation business$-$level strategy does not mean the company will offer the lowest prices. Low$-$cost pertains to the cost of providing customers with a product or service and not the price charged. To keep operating costs low, UPS takes advantage of every technological innovation that can help the company reduce costs. It also does things that others might consider extreme with regard to its operations. For example, UPS delivery routes are mapped out before a driver leaves so that left$-$hand turns are avoided. This saves miles on the road, which also reduces the companys carbon footprint.Despite its long history of success, UPS faces some challenges going forward. One of the greatest of these is the broad market shift to more residential deliveries. The pandemic led to a lot more online sales by individual consumers, and it appears that the increase in residential deliveries relative to business$-$to$-$business deliveries is going to remain. Business$-$to$-$consumer deliveries are lower in weight and require more stops. According to President of U$.$S$.$ Operations George Willis, miles driven have increased by $10$ percent and stops by $15$ percent, while the average weight of packages declined. At the same time, competition is coming from unexpected places. For example, Amazon is growing its own cargo network, buying its own cargo planes, and using private entrepreneurial companies as partners to enhance its delivery volume through its Amazon Delivery Service Partner $($DSP$)$ business$\mathrm{.}1.$ We note in the Mini$-$Case that United Parcel Service $($UPS$)$ is implementing the integrated cost leadership$/$differentiation business$-$level strategy. Provide examples of the competitive dimensions on which this firm focuses while implementing this strategy.