Case Study Questions
1: How do the IT investment strategies and focus of FedEx and its main competitor UPS differ? Which Company has the better strategy? Why?
The chief information officer of FedEx, Rob Carter states that the IT investment strategies are customer based technologies. FedEx focuses less on operational technology and more on revenue-generating, customer satisfaction, and strategic advantage technology (Oâ€™Brien 43). UPS is a much larger company that focuses on operations and the bottom line. UPS is constantly playing catch up with FedEx by mimicking their strategic advantage technology to stay in competition. This means FedEx always has a head start or the upper hand in the competitive advantage. FedEx has the best strategy of long term success. I am a very proud supporter of FedEx and I am also an employee of FedEx Ground. By investing in customer satisfaction and strategic advantage technology the company is building long term goals and relationships. FedEx is actually divided between FedEx Ground, only delivering to business, FedEx Home Delivery, only going to residential neighborhoods, FedEx Freight, overnight planes around the world, and many other branches to meet the demands of all different types customers. This customer satisfaction is a key to success in the new global economy. FedEx is also one of 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. Staying in the lead of this information technology will help FedEx to adapt to changing economies better then UPS who is struggling to maintain the competitive advantage. Fedex has the better IT investment strategy and will hopefully grow to the size of UPS. 2. Is FedEx “move, communicate, and shoot” 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. FedEx has chosen the...
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