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Real World Case 3: FedEx versus UPS
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| bet | 65/65 | | Sana | 01.04.2017 | | Hajmi | 348.93 Kb. | | #2764 |
Real World Case 3: FedEx versus UPS:
Playing Catch-Up in Telecommunications Innovation
1. Why does telecommunications play such a key role in the competition between FedEx and UPS?
The competition between FedEx and UPS is fierce. Both of these companies are giants in their field, and both are basically competing for the same market share. Telecommunications in all forms is playing a key role in enabling these companies to realize operational efficiencies and allowing them to conduct business in real-time (or very near it). Telecommunications is the tool for e-business, e-commerce, and m-commerce.
2. Why does “information about the package” have such a strategic business value in the express delivery business?
Information about the package serves a very important function in the business operations of these two giants. The information is what is used to coordinate the pickup and delivery of packages and track their progress from the origin to their final destination. Information about the package is not only important to FedEx and UPS, but it is also extremely important to their customers.
What telecommunications products or services would you recommend that FedEx or UPS use to improve their competitive position in the overnight delivery and shipping business? Defend your recommendation.
Students’ answers will vary as this is a subjective type of question. However it is evident information is a much sought after commodity in today’s competitive environment. Certainly as stated in the case, FedEx and UPS are both leveraging their IT expertise to become logistics outsourcers. As these two companies are the best in the world in the logistics field, they will undoubtedly make major changes in the way that other business will improve on the delivery of their products and services. Students may also make other creative suggestions as to how FedEx and UPS can make improvements, but the central point is the capturing and processing of data in real-time. Also, they must ensure that the companies do not lose sight of their core business – the delivery of packages.
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