Through the extensive use of technology UPS is no longer only a package delivery company. The technology driven growth model has not only helped UPS strengthen its current business, but also allowed diversification into varied business arenas. UPS’ subsidiaries now provide and supporting other services such as venture capital management and aviation equipment and professional services according to the client requirements.
On the downside, there are some risks involved with UPS’ growth model. First, since UPS’s core business is package delivery, its growth model revolving around technology might cause the UPS to lose focus of its core business. Therefore, UPS should be cognizant of this fact while exploring new business realms. Second, the technology industry is highly dynamic, hence UPS should constantly monitor the latest trends and be ready to change if needed to preserve its competitive advantage.
With the advent of the technology customer needs were changing. Also UPS was interested in discovering new ways to leverage its expertise and infrastructure. The company also knew to maintain the growth rate it has to enter new markets. Therefore, UPS started investing in e-commerce platforms with a vision to increase the efficiency and fle...
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... opportunities and preserve as appropriate via infrastructure standards.
UPS’ IT infrastructure extended its Core Business opportunity by developing various tools that could be embedded into customers’ applications. Management was also cognizant of the threat posed to business by its policy of open standards and focused on developing IT and legal mechanisms that would protect UPS.
UPS’s IT enabled the firm to identify and explore new business opportunities so that the company can provide global commerce solutions for its customers. With this vision the company created UPS e-Ventures - an incubator that explored ideas generated. The selected businesses were expected to deliver profits quicker. Since the IT landscape could support customisations, UPS could explore growth opportunities by providing customer centric solutions that demanded managing end-to-end processes.
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