Case Analysis: FedEx Corporation
I. Strategic Profile: Company Description, Current Status, and ProblemsFedEx Corporation is a global transportation and logistics enterprise that offers customers a single source for global shipping, logistics, and supply chain solutions. In the last 29 years, FedEx has expanded horizontally with its five subsidiaries to include FedEx Express (formerly Federal Express), FedEx Ground (formerly RPS), FedEx Custom Critical (formerly Roberts Express), FedEx Logistics (formerly Caliber Logistics), and Viking Freight. As a result, the FedEx family has been able to compete collectively in the express transportation and logistics industries. Today, services offered by FedEx include worldwide express delivery, ground small-parcel delivery, less-than-truckload freight delivery, and global logistics, supply chain management, and electronic commerce solutions.Formed in 1973 by Fred Smith, Federal Express Corporation is the company's original business. It began with the sole focus of improving customer segmentation, pricing and quality of services for the overnight delivery market in the United States. Since then, it has grown to provide leading document and freight services for the entire North America and for over 212 countries abr
Federal Express Corporation had the visionary leadership to become the first mover in this industry. Therefore, leaving FedEx with one source of differentiation: their ability to help in the control of the entire supply chain management. In addition, income from other parts of the business also help cushion the increase as shown in the rise of fuel prices in 1999. FedEx's competitors are gaining in the market share for this industry. FedEx must change to literally become a one-stop source for their three main services: delivery, logistic management, and supply chain management. The company's ability to use technology and create its own supply of resources has made it difficult for competitors to match the company's standards for service. The fact that FedEx has not focused on advertising its company as a whole proves to be its greatest weakness. Companies such as UPS, DHL, and TNT have started to make technological improvements to their services that have enabled them to provide similar services as FedEx. FedEx, over the years, has strongly gained its customer loyalty. Companies such as UPS, TNT and DHL have all made recent investments in improving their handling systems, automation processes, facilities and computer technologies. The best way for FedEx to implement these solutions is to rely on their brand name. Strategy Formulation and ImplementationThere are many ways that FedEx can improve its status and widen the gap between itself and its competitors. In addition, the customized delivery service of the company is unique in the market.
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