Competitive Advantage Using Information Systems Technologies

Information system and organizations are directly proportional to each other. Both of them have an equal significance in this contemporary world. The influence of Information Technology over organizations may positively impact the structure, culture, standards, politics and management decisions. However, it is critical for the organizations to increase their competitive advantages because it is something unique that the organizations have offered to their beneficiaries in terms of their products and services. It is also a fact that competitive advantages have been practiced on a temporary basis, as the competitors frequently seek ways to copy these advantages. Similarly, the role of information system technology is also transitory in order to get more competitive advantages. One of the famous companies in logistics and transportation is FedEx (Federal Express). Although, the FedEx had started as an “express air delivery company” but, it has converted itself into an incorporated logistics. Initially, they had worked through air services but after few years, they have initiated online services for their customers. By using IT services, they have launched their online services for the ease of their clients. The stakeholders of FedEx have known about the competition in the logistic market. So, they have introduced some new strategies such as, home delivery, supply chain solutions, online booking, to expand their competitive advantage by using information system technology. FedEx has been providing many services like physical transportation and distribution of packages, and also the online system those points out the location of a parcel at any time. Their major competitors have united parcel services, DHL, TNT Express, Freight Forwarders, and all- cargo airlines. Overall revenue is lesser than their competitors but, still, they are trying to increase their profit by implementing new strategies.

In a recent world, FedEx is a well-known multi-national corporation that globally provides services to their consumers. Several other logistic companies are collectively working as competitors of federal Express. According to Fortune magazine 2009, FedEx was among top 100 best organizations and 10 most inspired companies. During 2009, the company had faced recession in the means of loss in net fiscal income. Therefore, they have worked on different strategies and finally minimized their expenses in strategy making, streamlined operations and spend more in terms of its customers and brand. The company had implemented different policies like pressure management, innovate new services for customer satisfaction and gaining market shares. The main focus of FedEx was to expand their services in international markets in order to counter their competitors. They are the pioneers of using information system technology in their services. For instance, online parcels tracker that we have discussed previously in detail. The launching of their website in 1994, convert their name as FedEx in 1994, signing a contract with transport export mail and priority mail in 2001, and giving incentives to their employees are the major implementations of FedEx during the last couple of years. These implications were applied to enhance their online structure for the convenience of customers.

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