Ups and FedEx Case Study Research Paper United Parcel Service and Federal Express Case Study FedEx AND UPSóTHE WAR CONTINUES As the competition between Federal Express (FedEx) and United Parcel Service (UPS) escalated over the years, consumers reaped the benefits of faster, cheaper services.
The fierce rivalry between these two companies seemed to change direction in the mid-1990s as opportunities to appear innovative became increasingly difficult to achieve. Both FedEx and UPS realized that significant changes in the way they approached their businesses were needed.
Ups and FedEx Case Study Research Paper
These changes came largely in the form of information technology, which became one of the differentiating factors between these two powerhouses. By enabling customers to control their access to information, FedEx and UPS created a new battleground, while continuing to compete on the ground, in the air, overseas, and through a number of expanded service offerings.
Analysts fear that the market would become saturated seemed to become a reality in 1999, as FedEx’s profits plummeted while UPS saw its second most profitable year in company history.
FedEx’s troubles, however, were somewhat short-lived, and in a surprising resurgence due mainly to growing ground operations, FedEx was seeing record earnings once again by 2002.
1 Information Technology Mass customization and the World Wide Web In the mid-1990s, mass customization provided a competitive tool for FedEx and UPS, thereby giving customers the ability to tailor options to their specific needs. In 1995, FedEx and 1 FedEx Annual Report, 2002. For the exclusive use of Y.
Wen, 2019. This document is authorized for use only by Yuelin Wen in Competitive Strategy – Spring 2019 taught by GEORGE RUBSAM, Fashion Institute of Technology from Jan 2019 to Jun 2019. UV2945 -2- UPS gave away PC software to their customers, which allowed them to make labels, schedule pickups, and track shipments.2 In 1995, Oz Nelson, former chairman of UPS, commented: Itís becoming popular now to talk about mass customization.
I thought it was impossible . . . how can you pick up from 1.35 million customers a day and deliver 12 million packages a day and talk about any kind of customization? But I found out you can. One way is with technology.3 As Nelson suggested, technology became the key player in mass customization, but more specifically, information technology would play the defining role.
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