...Analysis………………………………………………………………16 IV. Marketing Plan…………………………………………………………………………16 Marketing Goals…………………………………………………………………….16 Marketing Strategies……………………………………………………………….17 Marketing Mix……………………………………………………………………….20 Marketing Budget…………………………………………………………………..22 V. Recommendation………………………………………………………………….…..23 INTRODUCTION The competition in the business arena has been very stiff and complex. In this regard, the organization must be able to utilize a strategy and management system that will enhance the performance of the business so as to outgrow its rivals (2000; 2003). There are certain ways or techniques that can be considered in order to emerge and continue to be competitive within the market place. The marketing concept has been defined as ‘the key to achieving organizational goals’ and the marketing concept rests on ‘market focus, customer orientation, coordinated marketing and profitability’. In a profit making business the firm obviously has to try and achieve this level of customer satisfaction as a way of staying ahead of the competition and making a profit. Traditionally, marketing has been utilized by most of the organisation in order to increase the capabilities and core competencies of the company. It can be said that marketing can be considered as one of the most important element supporting successful business establishment (1994). This is because of marketing’s complex applications, this have been defined in different manners. The significance of marketing...
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...allocated to marketing. With budgets of 28 billion dollars annually only demonstrates how much FedEx is determined to maintain its market leadership. FedEx has poured a large amount of their marketing budget into sports realizing that this area was essential to meet the marketing objectives. Steve Pacheco during his 11 year tenure, who was the cornerstone of the company’s high-quality advertising during the Super Bowl games has managed to secure this spot 12 times. Steve has realized the large audience that the Super Bowl attracts with audiences of over 111 million people. He knows that there is no other marketing means available today that draws that kind of crowd and the spot is worth every penny. In 2007 the company embarked upon several other sporting sponsorship deals such as Golf tournaments which were inclusive of a self-named tournament called the “FedEx Cup”. Other sporting associations the company did marketing through are NFL, NBA and NCAA. NASCAR was also used for promoting the company when it dubbed that promotional campaign “Everyday is Race day”. Pacheco stated, “The message that every day is race day is a great attribute. The campaign plays into the company’s characteristics because we race every day to get your packages delivered on time.” FedEx continues to be a leader by maintaining various means of courier services. These services include FedEx Express, FedEx Ground, FedEx Trade, and a 24/7 toll free customer support telephone line. FedEx Mobile app is...
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...Product A number of products are offered including • FedEx Express is the second largest civil fleet around the world providing services across U.S. mainland, Puerto Rico, the Dominican Republic, and other Caribbean islands. • FedEx ground provides services around America and Canada. • Home delivery and smart posts are also offered. • FedEx trade networks provide custom and insurance. • A toll free help line is provided to the customers at FedEx TechConnect. • Other products include FedEx Supply Chain Services, FedEx Corporate Services, FedEx Office and Print Centers, and FedEx Ship Centers. •Customer care centers are always alert for criticism. Price • FedEx offers its discount program on FedEx ground specifically. • Pick up services are provided with $6 as its additional cost. • FedEx Ground will provide pickup service to business locations, upon request, for an additional charge of $6 per week. Placement Mainly located in United States and is catering the services with in America and Canada but also approaches to the destinations worldwide through its air fleet. Promotion • FedEx campaigns runs in the print media throughout the year. • Spends heavy amounts on Commercial ads, that’s why high quality ads are formulated and remembered for years like John Moschitta ad. • The company ahs been a chief and sometime sole sponsor of motor sports, football and a number of sports being played at a junior level. • One major reason of its success is political lobbying...
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...fourteen small jets at its disposal, FedEx today has more than 560 aircrafts – making them the largest all-cargo air fleet in the world. The total daily lift capacity of their fleet exceeds 26.5 million pounds. Within 24 hours it travels approximately 500,000 miles. With the 2.5 million miles the FedEx Express couriers log a day; it is equivalent to 100 trips around the earth. A need that already has been identified rarely provides companies with big business opportunities. The greatest opportunities arise when you detect a completely new need that your customers didn’t even recognize themselves until you offered a solution to them. That is the success story of FedEx with its overnight delivery system. The company was named “Federal Express” because of the intended associations with the word “Federal” since it expressed an interest in nationwide economic activity. Another trace to the name is the proposed contract with the Federal Reserve Bank, which the company hoped to attain at that time. Although the proposal was denied, the name “Federal Express” was chosen since Smith believed it was a particularly good one for their purposes. It draws public attention to the business and facilitates name recognition. While the ability to identify an unidentified need provides a great business opportunity, it tends to remain useless if a company fails to come up with a new and innovative way of meeting it. The delivery of a new service can be quite tricky. FedEx solved it brilliantly by its hub-and-spoke...
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... FedEx was founded in 1971 and was incorportated in October 2, 1997, is a holding company and was founded by Frederick Wallace Smith, current CEO, president & chairman of FedEx Corporation. It is an express transportation company offering fast delivery services within few business days and serving markets. The company provides a portfolio of transportation, e-commerce and business services under the FedEx Brand. The company also operates in four different segments, taking charge on series of activities, namely “FedEx Express”, “FedEx Ground”, “FedEx Freight”, and “FedEx Services”. -Location worldwide * Auckland * Bangkok * Beijing * Cebu * Christchurch * Guangzhou * Hanoi * Ho Chi Minh * Hong Kong * Jakarta * Kuala Lumpur * Manila * Melbourne * Osaka * Penang * Seoul * Shanghai * Shenzhen * Singapore * Sydney * Taipei * Tokyo -Total revenue man power -Core product & supplementary services. FedEx Ground Package System, Inc. (FedEx Ground) is a provider of small-package ground delivery service. FedEx Ground provides day-certain service to every business address in the United States and Canada. FedEx Freight Inc (FedEx Freight) is a provider of less-than-truckload...
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...TABLE OF CONTENT 1.0 Introduction 2 2.0 Measurement of Success 2 3.0 Reasons Behind FedEx Corporation’s Success 4 3.1 Excellent and Leading Service Quality 4 3.2 Effective Employee Management 4 3.3 Intended Acquisition Strategy 5 3.4 Sustained Innovation 5 3.5 Global Reach and Further Expansion 5 3.6 Pursuance of International Market Dominance 5 4.0 Justification of FedEx Corp. Success 6 4.1 Value Chain Framework 6 4.1.1 Support Activities 6 4.1.2 Primary Activities 7 4.2 VRIN Framework 7 4.2.1 Value 7 4.2.2 Rarity 8 4.2.3 Inimitability 8 4.2.4 Non – Substitutability 9 4.3 International Strategy 9 5.0 Contribution of Leadership 11 5.1 Traits Theory of Leadership 11 5.2 4E’s of Leadership 11 5.1.1 Envision 11 5.1.2 Enable 12 5.1.3 Empower 12 5.1.4 Energise 12 6.0 Challenge for Future Success 13 6.1 Intense Competition 13 Reference List 14 LIST OF FIGURES Figure 2.1: Annual Financials of FedEx Corp…….……………………………………………………………………2 Figure 2.2: FedEx Market Share…………………………………………………………………………………………….3 Figure 2.3: Air Freight & Logistics Market Growth…………………………………………………………………3 Figure 2.4: Customer Satisfaction Benchmark……………………………………………………………………….4 Figure 4.1: Porter's Value Chain Framework………………………………………………………………………….6 Figure 4.1.2: FedEx Primary Activities……………………………………………………………………………………7 1.0 Introduction According to Amsler et al (2010), the market of shipping and transport logistics has become a leading...
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...Goal Setting in an Organization - FedEx Name: Institution: Date: Introduction FedEx express is a renowned company whose headquarters are in the US (Berkeley, 1962). Since its inception, the company managed to move greater heights, thus becoming a giant in the provision of freight, and other carrier services. However, these great achievements did not originate from a vacuum, but through the firm’s concerted efforts. As such, this research paper provides an insight into one of the company’s organizational behaviour process. Main Body Like other multinationals, FedEx Express Corporation does not operate in a vacuum, despite its major success story. The firm does not operate in a vacuum because various external factors affect its operations. Some of the external factors include political factors, labor pressures and technology shift. Technologically, since the inception of freight and carrier services by different companies, things have not been stagnant. For example, with the inception of modern technology FedEx Express embraced many changes in its operations. Some of the new aspects adopted by the corporation include online booking of freight, and other cargo delivery services (Berkeley, 1962). Through this platform, the customers are able to book for transportation of their goods, and other services online, anywhere across the globe. Further, through this platform, the clients are able to verify the status of their various transactions within a short time,...
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...[pic] Introduction FedEx Corporation (FedEx) is a US based company mainly engaged in offering logistics solutions. The company, through its subsidiaries, provides transportation, e-commerce and business services under the FedEx brand. The major benefit of using the company is its ability to provide “day-certain” service to every business address in the US and Canada, as well as provide “time-certain” delivery to those areas within one to three business days. The company was founded in 1973 by Frederick W. Smith, whose vision was to provide overnight delivery services for his clients. The company is divided into eight major divisions: [pic] The mission of FedEx is to provide superior financial returns for shareowners by providing high value-added supply chain, transportation, business and related information services through focused operating companies. Customer needs will be met in the highest quality manner appropriate to each market segment served. FedEx strives to develop gratifying relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations and all activities will be conducted to the highest ethical and professional standards (FedEx Corporation – Financial and Strategic Analysis Review, 2011). FedEx’s vision is a world where goods and information move quickly and seamlessly. The company’s goal is to connect the world in such a way that consumers will view them as a provider of convenient...
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...Paper Carol J Spencer MGT/230 August 5, 2013 Yolanda Callaway Organizational Structure Paper FedEx uses a divisional organization structure, due to the many different facets of the company. When the company first started, a vertical structure fit the basic needs, but as the company expanded into an international overnight courier service, ground delivery service, and freight company, it became necessary for the organizational structure to expand as well. The company, originally known as Federal Express, started small so the business structure was simple. As the company grew and added more branches, it was necessary to expand the structure model. The divisional structure that is used looks like this: (Unknown, 2012) (Unknown, 2012) The divisional structure works for this company because of the many different branches that it has acquired over the years. A vertical structure, which worked in the beginning, now would strangle the business. There are too many details for one person, or one CEO, to manage on a daily basis. The first day of business for the company included delivering 186 packages overnight. Today the business moves 30 million pounds of freight, travels 500,000 miles by air alone. The couriers, the people in the trucks with the FedEx logo that are seen on dirt roads out in the country as well as on every city block, put in 2.5 million miles a day (FedEx, 2013). A vertical organization structure, like that of the military, would not be adequate to manage...
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...FedEx: The World on Time Shipping, Logistics, and Supply Chain Management Indiana Wesleyan University Facilitator FedEx: The World On Time History of FedEx Today FedEx Corporation is the premier provider of shipping and information services worldwide. Headquartered in Memphis, Tennessee, the company functions under the motto "operate independently, compete collectively and manage collaboratively."(FedEx.com, 2011) By operating independently, each company can focus exclusively on delivering the best service for its specific market. In 1965, Yale University undergraduate Frederick W. Smith wrote a term paper about the passenger route systems used by most airfreight shippers, which he viewed as economically inadequate. (FedEx.com, 2011) Smith wrote of the need for shippers to have a system designed specifically for airfreight that could accommodate time-sensitive shipments such as medicines, computer parts and electronics. In August of 1971 following a stint in the military, Smith bought controlling interest in Arkansas Aviation Sales, located in Little Rock, Arkansas. Smith identified the tremendous difficulty in getting packages and other airfreight delivered within one to two days. This dilemma motivated him to do the necessary research for resolving the inefficient distribution system. Thus, the idea for Federal Express was born: a company that revolutionized global business practices and now defines speed and reliability. Federal Express was so-named due to the...
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...FED EX and UPS Airfreight Industry Analysis 1. During the 1980s, the air express industry was a medium to attractive industry to already be a major player in, but not a very attractive industry to try and break into. The industry can be characterized by high rivalry from competitors who compete on the same services with very little differentiation, medium power from suppliers who supply the resources necessary to run the business, high buyer power because customers can basically find an equal service from any firm in the industry, low substitution threat from other means of shipping transportation, and low threat of new entrants due to the high initial capital outlay and need of management experience. In this analysis, we will delve deeper into each of the dynamics within Porter’s 5 Forces to form an opinion of why the industry is attractive to be in and then discuss how competition greatly increased during 1988-1989. In the air express industry, where customers can ship their packages over long distances via airplane, there is high rivalry because the firms competing in the industry all do the same service. Since there is little differentiation between firms, each firm must battle for customers by either providing better or new services, integrating new competencies into their business processes, or doing business at a low price to create bigger economies to scale which will then cut down operating costs. Firms who want to compete...
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...The corporate strategy of fedex corporation Executive Summary This analysis of the corporate strategy of FedEx Corporation relates to three specific issues in the corporate strategy case. The first issue is a critical analysis of the global express transportation and logistics industry. The second issue discusses about the mergers and acquisitions in transportation and logistics industry. The final issue is a critical review of the performance of FedEx in the events leading to the January 2000 reorganisation. In the first section, the global express transportation and logistics industry is an attractive sector based on the fundamentals of the sector given in the five forces analysis using Porter's framework. There are large barriers to entry, there are minimal substitutes that exist, industry is relatively disciplined, and the power of buyers and suppliers are mixed. FedEx is well placed in the sector given its core competencies and dynamic capabilities relating to its management and the functional areas of marketing, human resources and information technology and systems. In the second section, gives a brief knowledge about the benefits and limitations of merger and acquisition strategies in this industry. This also describes how effective was the 1998 Caliber System acquisition and where did it led the company do in its further years. In the final section, it is noted that FedEx performed poorly within its sector and given its capabilities, the firm was expected to have...
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...Marketing Case #1: Federal Express (FEC) Situational analysis Consumer | Small packages (up to 2 lbs) must be delivered in a reliable and timely manner. Delivery confirmation would help. | Competitor | USPS (Express Mail), Emery (much bigger brand name), smaller airfreight forwarders, REA Air Express, Airlines, *local freight companies (hard to match local relationships) | Company | Courier Paks at flat rate, self-contained delivery/flight system (sustainable), People-oriented culture (employee satisfaction seems high) | Collaborators | Local storage/sorting facilities, truck drivers, salesforce, researchers (comparing Express Mail reliability) | Context | The airfreight industry is becoming cutthroat and companies are copying business models and popping up everywhere. Express mail is taking off but at a per distance and weight cost basis. | Setting the strategy Segmentation | Basic consumer (20%) , Manufacturing and distribution (17%), Advertising (8%) – Reliability is key across segments | Targeting | Businesses with lots of paper pushing and the general consumer | Positioning | Reliability, All American Jets (America’s Shipper), Flat rate package – Possible expansion into bigger courier packs | Value proposition Product | Flat rate box – We run our own airline | Place | Toll free number to call about locating local courier pack provider – You’d want couriers to keep stores of packs on their trucks to sell | Promotion | Convince customers...
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...1.0 INTRODUCTION An American global courier delivery service, Federal Express (FedEx) Corporation was founded by Frederick W. Smith in 1971 (Ferrell & Hartline, 2011). Formerly known as FDX Corporation, its headquarter is in Memphis, Tennessee, U.S. There are four segments that the company is divided into which are FedEx Express Segment, FedEx Ground Segment, FedEx Freight Segment and FedEx Services Segment. The FedEx Express Segment includes two companies which are FedEx Express and FedEx Trade Networks. In the FedEx Ground Segment includes FedEx Ground and FedEx SmartPost, For FedEx Freight Segment consists of FedEx Freight, FedEx Custom Critical and Caribbean Transportation Services. As for FedEx Services Segment comprise of FedEx Services, FedEx Office, FedEx Customer Information Services as well as FedEx Global Supply Chain Services. FedEx has experience tremendous success domestically and internationally since it began operations, however FedEx is still does not has the main market share in both markets as UPS dominates the ground delivery and DHL dominates the international express delivery. So in this paper, we will be answering three questions regarding FedEx’s methods of expansion, reasons for its global operations problems, SWOT considerations, competitive landscape and recommendations to encroach upon the two competitors. 2.0 QUESTION 1 Evaluate the methods used by FedEx to grow domestically and internationally. Why do you think that the company initially...
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...------------------------------------------------- Airborne Express Case 1. How has Airborne survived, and recently prospered in its industry? Please address why you think it was difficult for bigger competitors such as FedEx to imitate Airborne’s strategy. Although Airborne does not get the publicity that FedEx and UPS get, they have managed to remain the third largest player in the express mail industry. One unique aspect that has helped Airborne maintain a leading position in the industry is their ownership of an airport, which serves as their major hub. This is a huge advantage because they have complete control over the timing of each shipment and what comes in and out of the airport. Airborne also purchases and modifies used aircrafts, which saves costs and allows them to run roughly 15% more full than their competitors. Onsite at the airport, Airborne leases out warehouse space to their business customers, which allows for quick delivery on last minute orders. This is a unique offering in which their competitors cannot match without purchasing an airport. Another important aspect of Airborne that helps maintain their position in the industry is their selective process for choosing customers. Ray Berry, vice president of Field Services Administration at Airborne, was quoted stating, “We pick our kind of customer deliberately.” (Rivkin, 11) The company would purposely pass over business with customers who didn’t fit their vision. Airborne mainly targeted “the business...
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