Marketing Strategy and Competitive Positioning pdf ebook

Customised needs
In the middle of a warehouse near the end of Louis-
ville Airport’s runway stands a line of heavy-duty 
freezers, an electronic stopwatch sitting on the lid 
of one. The stopwatch is intended to protect the deli-
cate sheets of artificially-grown skin inside the freez-
ers, used to treat diabetics’ foot ulcers. Supervisors 
time how long each freezer is open when stocks are 
being retrieved, to ensure the temperature stays low 
enough.
The business in the warehouse illustrates how 
thoroughly UPS and other logistics companies have 
involved themselves in some customers’ operations. 
Next to the skin freezers, workers are preparing to 
ship batches of influenza vaccine. In another section 
of the building, workers are putting together pack-
ages of mobile telephones for Sprint, the mobile 
telecoms company. They customise devices for cus-
tomers with special requirements, including gov-
ernment departments that want employees’ phone 
cameras disabled.
Such supply chain business is separate from the 
flagship express parcel operations of UPS, FedEx 
and other logistics operators but adds a vital extra 
dimension to the services they can offer compa-
nies. According to Rich Shaver, division manager 
for healthcare in UPS’s Americas Central District, 
the growing popularity of outsourcing reflects the 
increasing pressure on healthcare companies to save 
money and compete more effectively.
‘The customers have to have a competitive 
advantage,’ he says. ‘The only way they can have 
a competitive advantage is if they have a very nim-
ble, flexible supply chain that at the same time 
is looking for what regulations and changes are 
coming.’

---

451
CASE STUDY
The healthcare business, unlike high technol-
ogy, remains relatively conservative and goods are 
shipped mostly to retail outlets, hospitals and other 
corporate customers.
However, the Louisville warehouse already 
employs pharmacists to handle prescriptions 
for some goods heading direct to customers. The 
company is receiving increasing numbers of requests 
to suggest ways that customers can deliver more 
healthcare products direct to consumers, according 
to Mr Shaver.
‘Most times, it’s going to be a progressive, step-by-
step process,’ he says.
Source
: from ‘UPS and FedEx turn focus to consumer behaviour’, Financial Times, 12/08/14 (Wright, R.).
Discussion questions
1 
What issues are UPS and FedEx facing here?
2 
How do UPS and FedEx contribute to their clients achieving a competitive advantage?
3 
What are the drivers for collaboration in the examples given?

---

‘Drawing a line between strategy and execution almost guarantees failure. . .
It’s a commonly held idea that strategy is distinct from execution, but this is a 
flawed assumption. The idea that a strategy can be brilliant and its execution 
poor is simply wrong.’
(Martin, 2010)
‘Where is the value zone?. . . In the interface between employee and 
customer. . . So what business should the management of the company be in? 
Enthusing, enabling, encouraging and creating an environment so employees 
can create value.’
(Nayar, 2010 – CEO of HCL Technologies and author of Employees First, Customers 
Second quoted in Davidson, 2010)
STRATEGY IMPLEMENTATION AND 
INTERNAL MARKETING