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The United Parcel Service

The United Parcel Service. A Global information systems specialist. The Shipping Industry. Rapidly growing industry Explosion of online orders High customer power Vulnerable to some substitute services Direct purchase from brick-and-mortar store Complimentary in-store ordering

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The United Parcel Service

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  1. The United Parcel Service A Global information systems specialist

  2. The Shipping Industry • Rapidly growing industry • Explosion of online orders • High customer power • Vulnerable to some substitute services • Direct purchase from brick-and-mortar store • Complimentary in-store ordering • Threat of new market entrants low

  3. Business Model • Pre-1980: “Package Delivery Company” • Post-1980: “Global Information Service Provider” • Deploy technology to continue introducing new services • Provide customers with comprehensive information about their shipments • Provide training so all employees will clearly understand: • UPS Services • The technologies that make them possible • How to communicate that information to the customer • New divisions including Logistics Management

  4. Information Technology in Business Strategies • Process Efficiency • DIAD • EDI • Smartlabels • Prelabels • Product Differentiation • First to offer extensive online services • Strengthen customer and supplier intimacy • My UPS • UPS embedding services

  5. Global Market UPS holds a large portion of the Global Market share New 1 million sq. ft. hub in Shenzhen Robust EDI system allows instant transfer of information across oceans

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