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Leading package delivery company, United Parcel Service, Inc. (UPS - Analyst Report) launched a new shipment monitoring and risk management solution – UPS Proactive Response Secure. The new service will make sure that time and temperature sensitive products reach their destined places.

Proactive Response Secure ensures the reimbursement of the total retail value plus other costs in unforeseen delays, including weather disruption. The service is available across the U.S. and for ships voyaging to the European Union.

We believe the introduction of products and services adds opportunities for revenue generation even in a volatile market such as UPS’ home ground. The company’s financial strength drives growth through strategic investments, technology-backed operations and enhanced worldwide network.

Apart from enhancing its portfolio of services, UPS is also reaching new markets such as health care business. UPS is set to tap opportunities in this rapidly expanding market by establishing various distribution facilities specially dedicated to health care in key markets like Singapore, the Netherlands, Canada, Latin America, Australia and the U.S.

The company sees other opportunities in emerging markets like China, India, Japan and Brazil. As a result, United Parcel Service extended its 8-year long partnership in 2011 with pharma company  Merck & Co. Inc. (MRK - Analyst Report) to expand its distribution and logistics services to certain Asian and Latin American markets. In 2012, the company acquired Italian pharma logistics provider Pieffe Group to enhance its health care distribution networks in North and South America, Europe and Asia.

However, we remain concerned about volatile economic conditions that continue to restrict market demand. Further, the company is also exposed to unionized workforce and intense competition from carriers like FedEx Corporation (FDX - Analyst Report) and Expeditors International of Washington Inc. (EXPD - Analyst Report).

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