Biggest Shipping Companies in the USA FedEx vs UPS
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Based on the reseach from Articlesbase ( ArticlesBase SC #613762) states that the top in The 10 Biggest Shipping Companies in the USA in 2010 was United Parcel Service Inc(UPS) and the second was FedEx.
Based on the chief information officer of FedEx, Rob Carter, state that the IT investment strategies are customer based on technologies. The focuses of FedEx more on developing, revenue-generating, customer satisfaction, and strategic advantage technology but focuses less on operational the current technology. FedEx always has a head start in the competitive advantage. For example, FedEx was the first companies to come out with state of the art technology such as Insight which will help recruit and retain more customers in the long run.
UPS is a much bigger company that focuses more on operations and the bottom line. UPS is constantly playing catch up with FedEx to stay in the competition market. But sometime UPS also chose a wiser approach such as built a more open system that made easier for customers to incorporate into their existing systems than FedEx s proprietary software that customers were forced to adopt. UPS also got some IT firsts after a late start such as offer vital shipping information to customers via a wireless device and also extend wireless tracking around the globe in their native languages that made them becomes the largest private wireless network in the world.
Therefore, I says that both two company have their own strategies in their business but FedEx has the better IT investment strategy of long term success because this company is more as an innovator than a follower in IT applications. It will help FedEx to adapt to changing economies better then UPS who is struggling to maintain the competitive advantage. Finally, FedEx has the potential grow to the size of UPS if focus more on operational technology and remain the old focuses.
(2) Is FedEx s IT strategy a good one for its competitive battle with UPS? Why or why not? Is it a good model of competitive IT strategy for other types of companies? Defend your position.
The IT strategy of FedEx move, communicate, shoot is a good model of competitive IT strategy for other types of companies that has a differentiation and innovation strategy. This IT strategy is working very well in its line of business in terms of revenue and customer satisfaction. The most revenues come from to cover its $ 1 billion a year budget for information technology was from this strategy.
The big challenge in this approach is that there is no time for rest. It is because move is means that grab a new opportunities, innovative, and different service or product has been launched, their must move forward from where their current are to insure new project s success. Next will forward to stage communicate. That means communicate with organizations and customers in a new place. But all their competitors will soon follow their step after their step. So the company has to shoot it service that means execute the new technology or strategy without any hesitation such as making strong driving force, drive innovation within the industry, rapid change of technology and business situation, and make other types of companies have Competitive forces and sustainable. Then, move on to the next one as FedEx s strategy say move, communicate, and shoot and then the cycle goes on.
In the conclusion, I know that a good competitive strategy involves not only innovation but also a quick and thoughtful response to competitors' actions as well.
(3) Use the Internet to discover more about how FedEx is involved in fighting the war on terror, beyond what is reported in this case. For example, FedEx has made some controversial disclosures of customer information to intelligence agencies. Discuss FedEx s corporate responsibility to assist in the war on terror while protecting the privacy of its customers, as well as any other issues uncovered in your research.
Based on the article in The Wall Street Journal on 26 May 2005, states that the federal law-enforcement officials asked FedEx Corp. for help before Sept. 11, 2001 but the company had its limits. It wouldn't provide access to its databases. It often refused to lend uniforms or delivery trucks to agents for undercover operations, citing fears of retribution against employees as well as concerns about customer privacy.
Then came the attacks on New York and Washington and pleas from the government for private-sector help in fighting terrorism. FedEx's newfound enthusiasm for a frontline role in the war on terror shows how the relationship between business and government has changed in the past few years. In some cases, these changes are blurring the division between private commerce and public law enforcement. Moreover, the United State government altered the responsibility of a good corporate citizen to include help running down al Qaeda operatives after September 11.
FedEx has also spent billions of dollars over the past on complicate computer systems to assist in the war on terror while protecting the privacy of its customers. FedEx's security team which includes several former federal law-enforcement officials took tactics for thwarting drug traffickers and adapted them for use against terrorism. FedEx also has a seat on a regional terrorism task force, overseen by the FBI which has gain access to sensitive data regarding terrorist threats. The recently retired vice president of FedEx corporate security, Robert Bryden, says it s outstanding for a private company to have a seat on the task force. Based on the FBI says, FedEx is the only one across the country.
For example, certain website of FedEx required registration or a password for access. Therefore, information obtained from registered users of may also be used for FedEx marketing purposes and cookies may be used in some of the areas as is described in the policy.
FedEx corporate normally do not retain credit card information for use on the next transaction unless otherwise agreed. Security Advanced-Online uses industry-standard SSL authentication to guarantee the confidentiality and privacy of online transactions through its site. As mentioned, FedEx corporate will stored the credit card number of the customers in database in an encrypted format to further protect this information from unauthorized access.
In conclusion, FedEx corporate shows all their responsibility not only to assist in the war on terror but also all the time while protecting the privacy of its customers.
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