In this assignment for business course 599, we are to analyze Federal Express’ value creation frontier, and determine which of the four building blocks of competitive advantage the company needs in order to continue to maintain above-average profitability. We are to determine the main aspect of product differentiation and capacity control that Federal Express could use in order to maintain an edge over its rivals. We are to assess the efficiency of Federal Express’s current business model, and recommend one new business-level strategy that gives the company a competitive advantage over its rivals. We are also asked to examine the manner in which overall global competition may impact the new business strategy. And, finally, we are asked to suggest one significant way that Federal Express may confront its global competition.
Senior management at FedEx must appreciate the need for adding new value to their organization if they intend for FedEx to remain viable. Senior management needs to be committed to the creation of new internal capabilities for FedEx growth. And management must be ready for strategy innovation and the exploration of FedEx’s strategic frontier.
Innovative new business opportunities found on the strategic frontier can provide forward-thinking leadership with the entrepreneurial growth ideas FedEx needs. FedEx does not need decades of R&D expenditures to develop new business ideas and opportunities. All FedEx really needs is an understanding of its customer’s needs.
If FedEx is really in touch with the needs of the customer, then the organization will be closer to deciding where on the strategic frontier meaningful value is to be found. Once FedEx reaches that point then senior management will need the conviction and motivation to create a new business model to address those needs. Strategy innovation can take the form of new products and