UPS faced a variety of problems in the near future. UPS had to consider how to develop and grow it’s technology and information services, in order to remain competitive in the market. With that challenge, UPS had to face the challenge of balancing its intent to develop and promote from within, with the need to advance quickly using outside resources. Along a similar vein, UPS struggled with the strategic problem of how to grow their air services business. UPS has to consider whether or not to continue contracting air services from other suppliers, or to acquire another firm. Acquiring another firm would cause UPS to deal with even more problems with cultural integration. Overall, UPS was dealing with the strategic problem of balancing the need for cultural integration and the need for rapid development. Neither factor could be ignored if UPS wanted to remain a strong contender in the market.
UPS had to seriously consider the strength of its competitors as it determines whether slow technological growth and strong cultural integration, or fast technological growth and weak cultural integration. When considering the seriousness of the Federal Express challenge, there are a variety of factors we should consider. First, we should examine the strengths that Federal Express has, and then consider the market trends which could make those strengths more or less important in the coming years. Next we should look at their respective market positions, and how directly UPS and Federal Express compete with one another.
When looking at Federal Express’s strengths, it is clear that they stood above much of their competition in technological advances. Their CEO was a member of a variety of engineering and technology societies, and employed 95 technology employees within Federal Express. With technological leadership, they were poised for growth in the industry based on technology. Federal Express had developed multiple technology systems in order to... [continues]
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