GLOBAL CORPORATE STRATEGY

Global Corporate Strategy



Global Corporate Strategy

Question 1

Industry Dynamics

The transport and logistics industry is extremely dynamic. Consumers have dynamic and a variety of needs which makes this industry energetic. As part of operations, organizations find themselves in a need to send important packages and documents to their stakeholders or counterparts. These organizations may range from global corporations, small businesses to ecommerce, and individual consumers, as well. Nonetheless, these services may vary from customer to customer. For instance, companies like IBM depend heavily on sending their products via shipping. IBM's large volume through shipping requires service provider FedEx Corporation, to follow specific needs and protocol. Furthermore, due to extensive use of shipping and large volumes, IBM gets discounts on large volume of shipments. Moreover, IBM also uses FedEx Corporation to assist them documentation work pertaining to customs, when shipping internationally. It is essential that the shipping industry reflects the dynamics of other industries so that it can achieve sustainability in the present dynamic environment (Tatge 2001, pp. 146).

One of the significant innovations and changes which transformed the logistics and transportation industry is the Internet. Customers now have the assistance of information technology and the Internet to deliver their packages and documents. Gone are the days when customers had to drive all the way to deliver those packages. As of now, customers can call or order a pick up via the Internet. Furthermore, customers can now get information pertaining to the status of delivery at any time.

For many of us, these changes might look as an established business in transport and logistics industry. This might seem as an established form of doing business in shipping service industry. However, FedEx introduced these changes back in 1994 when it developed a website to track applications, and provided customers with unique bar code to personalize each delivery. These changes and innovative measures help customers to stay connected with their delivery status from receiving the packages to its delivery (Kasilingam, 2000 Pp. 56). It provides customers convenience and confidence over the delivery system. Even, though, information technology in the modern era facilitates this function in an effective way than before through the wireless solution. For instance, FedEx uses the accessing package tracking data which it offers to its customers. FedEx provides these services through its ground and home delivery web enable devices. Customers can easily access tracking information from any point as these devices act as PDAs (personal data assistance).

The transportation and logistics industry, as most of the other industries, continuously look to include innovations pertaining to technology, so that organizations can meet customer's needs in an effective and more sophisticated way than before.

In addition, companies other than FedEx which strive to incorporate technology in their business include UPS. United Parcel Services is one of the significant competitors in the industry which integrates innovative technology in its business functions. UPS seeks to deliver competitive customer service and efficiency in operations. Furthermore, UPS seeks to customize solutions through changes in processes and software and hardware ...