Blue Ocean Strategy for UPS
UPS currently operates world wide and is at the forefront with electronic shipping technologies and a massive fleet of transportation to support business. By identifying the three tiers of non-customers
and analyzing the buyer utility map
, UPS needs to broaden its current services through inventive thinking and removing themselves from their comfort zone. Since UPS has pretty much dominated the US market, and is still trying to expand overseas, one recommendation would be to partner with or acquire a smaller, more remote delivery services
Another suggestion for opening up to a Blue Ocean in the US market is a possible exclusive partnership with a large retailer
. Another company that I have been analyzing for BOS is Amazon.com
. Through an exclusive relationship with Amazon.com, UPS would be able to become the ‘face’ of Amazon thus thrusting it into a Blue Ocean worldwide.
Another BOS suggestion for UPS would be to take advantage of the current awareness of our environment. Think about your last visit to the UPS store to ship something. Although these businesses are franchised, UPS (corporate) could offer incentives to business owners for promoting the recycling of boxes and packaging supplies
. This works on two levels, it helps the environment through a ‘green’ initiative while bringing communities together. This will satisfy the disposal phase of the buyer experience cycle while bringing an emotional connection of community to the customer.
Each one of these strategies/recommendations come with their challenges and satisfies the six utility levers in a different manner; some stronger than others. The main goal is to reach out to non-customers by giving them a ‘wow’ factor
and making them want to know more about what UPS is all about.