Marketing Strategy Hw week 2
1. What FedEx strengths provide it an advantage against UPS?
The biggest advantage that FedEx had over UPS high speed internet tracking system that provides easier and better tracking service for all customers including large businesses. UPS did not have this technology the time FedEx had it, UPS only had their trucking service meanwhile FedEx invested in their tracking systems as well as their air delivery system that contain tracking systems too.
2. Was it a good idea for FedEx to follow UPS into the “trucking business?”
I believe it was because UPS was offering competition to FedEx because they were guaranteeing on time delivery service three days after and order or money back guarantee. When FedEx decided to offer ground delivery, shippers and customers using FedEx Home Delivery and FedEx Ground (business to business) would be able to call up the same website that FedEx’s air express customers used to track packages (Jain, Haley, 2009). FedEx believes that this is their strength.
3. What impact will the Internet have on the shipping business?
The Internet became an essential tool for delivery service because it allows for customers to track and see the whereabouts of their packages. Margins should rise, as Internet would boost the flow of boxes to apartments and suburbs. According to UPS, business delivers in the late morning and residential in the afternoon (Jain, Haley, 2009). Density scale were a big part of this.
4. If you were an investor would you invest in FedEx or UPS? Why?
In my best judgment, I will choose FedEx because they offer whatever it takes to give what a company demands. According to the article, Cisco wanted precisely timed delivery service and choosing between UPS and FedEx, UPS did not give the amount of enthusiasm as FedEx. The problem for Cisco was that a big client might order 100 routers at a time. Cisco wanted for their customers to receive their orders on time (Jain, Haley, 2009).