Question:
Buy – Build - Ally
BUY –
Attain and combine with another business, that aligns with the company’s goals, to grow and/or
diversify the company’s market share.
BUILD –
Utilize the existing internal capital to develop and improve upon internal processes to expand
and/or diversify the company’s market share.
ALLY –
Enter into a contract with another business, with expertise in other areas, in order to add to the
products and services offered by the company and increase the company’s market share.
United Parcel Service, Inc
Recommendation - Alliance
DRONE DELIVERY
Why alliance?
◦UPS deals in domestic and global delivery and supply chain logistics not the technology to build drones.
◦Less impact on revenue to share knowledge than to develop the talent and technology from scratch.
◦Minimizes the time frame of completion.
◦Makes it easier to terminate the project.
◦Opens doors to other partnerships within other industries.
Alliance Advantages
DRONE DELIVERY SYSTEMS
Alliance with Henry Schein, Inc.
◦Healthcare industry
◦Allows UPS to deliver between buildings on a medical campus. This benefits UPS because it opens the
opportunity to provide a technological means to transfer between buildings. It also benefits the medical
industry by removing the dependency upon human transportation of these goods and reduces the time it would
take to deliver between buildings.
◦OTHER OPPORTUNITIES
◦Opens delivery to rural areas, in need of medical supplies and other goods, that were previously not accessible
to UPS via traditional transportation.
◦Facilitates the delivery, of emergency supplies, to areas affected by natural disasters such as hurricanes and
fires.
◦Reduces UPS’ carbon footprint in urban areas due the reduction in the use of traditional vehicles for delivery.
Using drones will also improve the efficiency of urban area deliveries.
(United Parcel Service Inc, n.d.)
Alliance Advantages
The alliance, with Henry Schein, Inc., will provide UPS with expansion opportunities and a
market share edge, at lease in the beginning, over their competitors.
It will allow UPS to develop their delivery services, as shown on the previous slide, which
will increase their market share and, ultimately, their revenue stream.
The ability to provide these services aligns with UPS’ sustainability goals of being socially
and environmentally conscious.
This alliance also reduces the risk of exploring drone delivery systems, increases UPS’
knowledge base in this area, and opens the possibility of other contracts, with other
industries such as the government, for these services.
Timeline Projections
Year 1
Establish infrastructure between UPS and Henry Schein
Develop possible testing opportunities
WakeMed Hospital – Raleigh, N.C. (Graves & Meuchner, n.d.)
Year 2
Begin WakeMed testing
Complete evaluation of testing and resolve issues by end of year 2
Year 3
Complete testing (after issue resolution) with WakeMed
Determine next area of testing
Rural areas
Urban areas
References
Dyer, J., Godfrey, P., Jensen, R., Bryce, D., Uhl-Bien, M., Piccolo, R., & Schermerhorn, J. (2021). Organizational Strategy in a Global Environment [E-book]. John Wiley & Sons, Inc.
https://online.vitalsource.com/#/books/9781119802396/cfi/6/2!/4/2/2/6@0:0
Graves, D., & Meuchner, G. (n.d.). UPS and Sign Agreement to Explore Drone Delivery [Press release]. Retrieved May 27, 2021, from
https://investor.henryschein.com/news-releases/news-release-details/ups-and-henry-schein-sign-agreement-explore-drone-delivery#:%7E:text=29%2C%202020%20(GLOBE%20N
EWSWIRE),%2Dto%2Dbusiness%20operating%20models
.
Lagera, M. (n.d.). Business Strategy. United Parcel Service - Business Strategy. Retrieved June 11, 2021, from http://ups-teamtres.blogspot.com/p/introduction_9939.html
M.J.P. (2017, November 15). UPS Aims to Deliver Last Mile Efficiencies by Drone. Technology and Operations Management.
https://digital.hbs.edu/platform-rctom/submission/ups-aims-to-deliver-last-mile-efficiencies-by-drone/
United Parcel Service Inc. (n.d.). Shipping Services | UPS for Business - Reunion. Retrieved May 14, 2021, from https://www.ups.com/re/en/services.page?
United Parcel Service, Inc. (2020). 2019 UPS Corporate Sustainability Progress Report. https://about.ups.com/us/en/social-impact/reporting.html
Powered by TCPDF (www.tcpdf.org)
