|"When it absolutely, positively, has to get there even FASTER!"|
|Subject||Non-Price Competition, Increase in Technology, Increases in Efficiency|
|Topic||Monopolistic Competition; Production and Costs; Profit Maximization and the Firm|
|Key Words||Competition, Technology, Efficiency|
UPS is pledging to reduce its ground delivery time by at least one day in many of the biggest metropolitan areas. Using innovations in technology, such as a quicker train service, a streamlined trucking network, and changed sorting location hubs, UPS will make the package-delivery industry even more competitive. This move underscores the fact that service is one way in which firms like UPS maintain its competitive edge. This will make ground delivery almost as fast as air delivery, at about 1/3 the charge.
Firms in this market must continue to respond to change, although they
change in different ways. DHL Worldwide attempted to increase its market
share by purchasing Airborne, Inc. The US Postal Service, on the other
hand, has had reductions in its Priority Mail services, as well as service
problems, making it much less competitive than in recent years.
(Updated October, 2003)
|Source||Rick Brooks, "UPS Cuts Ground-Delivery Time." The Wall Street Journal. 6 October 2003.|
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