...Fedex: a perspective study | | Contents Introduction 3 1. The outside in perspective 4 1.1 Markets over Resources 4 1.2 Opportunity driven. 5 1.3 Market demand and industry structure 6 1.4 Adaptation to environment 6 1.5 Attaining advantageous position 6 1.6 Acquiring necessary resources 6 1.7 Inside-out perspective 7 2. Industry dynamics perspective 8 2.1 Compliance over choice 8 2.2 Uncontrollable evolutionary process 8 2.3 Fitness to industry demands 9 2.4 Low and slow ability to change the industry 9 2.5 Convergent to dominant design 10 2.6 Profit is largely industry dependent 10 2.7 Industry Leadership perspective 10 3. Integrated perspective and portfolio perspective 11 3.1 Synergy over responsiveness 11 3.2 Tightly related composition 11 3.3 Joint strategy development 12 3.4 Multi-business synergy & integrating resources, activities and positions 12 3.5 Acquisitions are difficult to integrate 12 3.6 Portfolio perspective 13 4. Conclusion 14 4.1 What strategic perspective does FedEx fit in? 14 4.2 Did it lead them to having a sustainable competitive advantage? 14 Introduction FedEx started out in its early years as a true pioneer. Originally an express delivery company, it transformed itself to a global logistics and supply chain management company. The CEO of FedEx saw enormous potential in connecting their business with IT. For instance, in the 80’s, FedEx gave away more than 100.000 PC’s...
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...reference for other industries, FedEx is chosen as the case study. FedEx, one of the world’s biggest express transportation and logistics companies, has been used many times as an excellent case to help people learn strategy management and acquire experience. It was founded in 1973. With the development of the company, FedEx transferred itself from a traditional express transportation company to a technical global logistics company. It absorbed the upcoming technology and make itself adapting to the change of the industry and the world to acquire the advantage of competition. FedEx spent a large amount of its resources and money on Information Technology and the R&D department to invent new information systems and develop new services. As the competition of the express transportation industry became more intense and took more consideration on customer segmentation, pricing and quality of service. FedEx developed new products and services to consolidate its advantages to acquire cognition from more customers. Also, many acquisitions occurred so that FedEx was capable of broaden its service portfolio and enhancing its market share. Due to those acquisition, FedEx achieved its commitment that was more than just an express transportation company. With the businesses of the company and the distribution of facilities, like warehouses, constantly widened, FedEx’s business covered more than 90% of the world’s GDP. Furthermore, with the launch of internet, FedEx...
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...Federal Express – delivering the goods Kevan Scholes This case study looks at how new business models can create vast improvements in competitiveness. However, the models must be suited to the business environment at the time and will have a ‘shelf-life’ as the business environment changes. The case study looks at one on the world’s most successful adopters of a new business model that transformed the airfreight and package delivery sectors worldwide. But the advent of the internet in the mid-1990s meant that the FedEx business model had to change or the company would decline. This is also the story of how it rose to that challenge. l l l 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. 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 a controlling interest in Arkansas Aviation Sales, located in Little Rock. While operating his new firm, Smith identified the tremendous difficulty in getting packages and other airfreight delivered within one to two days. This dilemma motivated him to undertake research on how to resolve the inefficient distribution system. In an interview with Fortune Small Business in 2002 he explained his business...
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...r p' FedEx Corporation: Structural transformation through e-business By Ali F. Farhoomand and Pauline Ngl [FedExI has built superior physical, virtual and people networks not just to prepare for change, but to shape change on a global scale: to change the way we all connect with each other in the new Network Economy. (1999 Annual Report) [FedExl is not only reorganizing its internal operations around a more flexible network computing architecture, but it's also pulling-in and in many cases locking-in customers with an unprecedented level of technological integration. (Janah and Wilder, 1997) ince its inception in 1973, Federal Express Corporation ('FedEx') had transformed itself from an express delivery company to a globallogistics and supply-chain management company. Over the years, the Company had invested heavily in IT systems, and with the launch of the Internet in 1994, the potential for further integration of systems to provide services throughout its customers' supplychains became enormous. With all the investment in the systems infrastructure over the years and the US$88 million acqrtisition of Caliber Systems, Inc., in 1998, the Company had built a powerful technical architecture that had the potential to pioneer in Internet commerce. However, despite having all the ingredients for the maltings of a successful e-business, the Company's logistics and supplychain operations were struggling to shine through the historical image of the Company as simply an express...
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...Federal Express The Federal Express is an express transportation company, created in 1973 by an innovative entrepreneur Frederick W. Smith. During his college years, he saw the idea that the United States was becoming more of a service-oriented economy and that it needed a reliable, overnight delivery service company that would transport packages, documents, medicine, computer parts and electronics. Frederick Smith born in Memphis, TN in 1994 perhaps has became one of the most innovative entrepreneurs with his corporation. In 1966 he graduated from Yale University with an economics degree. While pursuing his career, “he authored a paper describing the concept of a freight-only airline that would fly all packages to one central point, where they would then be distributed and flown out again to their respective destination (Hisrich, 2010, pg. 226).” The operations would take place overnight when airports were less crowded, and with the proper logistics, the packages would reach their destination by the next day. The professor did not think the idea was feasible so Smith received a C grade for his paper. Fortunately for Frederick Smith, he didn’t take it to heart and ended up building that company he dreamed of. After graduating from Yale, he enrolled in the Marines he served two tours of duty, first as a rifle platoon leader in the U.S. Marines and later as an air controller. His four year term was well spent because it permitted him the opportunity to examine a working...
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...Case 1 How FedEx Works: Enterprise Systems 1. FedEx uses many businesses processes when shipping an item. First they arrive to pick up the package, upon arrival they scan the package so they know it is now in their possession and it is able to be tracked. This is part of a manufacturing and production process, as well as a sales and marketing process. It is a manufacturing and production process because it starts the initial travel or shipping of the package to its destination. Sales and marketing is used through customer service by getting someone to use FedEx (generating an order) and by the convenience of having the package picked up from the customers door step. Once the package is picked up it is taken to a hub or sorting center. At the sorting center the package is put on a conveyer belt that sorts through the packages and sends them to their destination. While on the conveyer belt the packages are scanned by invisible laser beams which weigh each box and measure the size. The length, width, & height are measured and together they produce the volume of the package, this tells FedEx how much to charge the customer for shipping. This particular example is in the financing and accounting category of a business process. The packages are then pushed by a diverter to the appropriate slide; there are nine of these slides or chutes all of which represent a different location in the U.S. The packages that are unable to be read are sorted manually. They are then put in a...
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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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...Air Cargo Management-13 Yoon Seok, Chang School of Air Transport, Transportation & Logistics, KAU Email: yoonchang@kau.ac.kr 1 Why Use 3PL’s? • Save time – Don’t need to invest in: Trucks, Training, Development • Narrow your focus – Allows you to focus on your strengths • Reach more customers more effectively – Can ensure delivery times – can help a company run leaner Types of 3PL Providers • – – – – • Transportation Based Services extend beyond transportation to offer a comprehensive set of logistics offerings. Leveraged 3PLs use assets of other firms. Non-leveraged 3PLs use assets belonging solely to the parent firm. Examples: FedEx Logistics, UPS Logistics Financial Based – Provide freight payment and auditing, cost accounting and control, and tools for monitoring, booking, tracking, tracing, and managing inventory. – Examples: Cass Information Systems, CTC, GE Information Services, FleetBoston Types of 3PL Providers • Warehouse/Distribution Based – Many have former warehouse and/or distribution experience. – Examples: Exel, Caterpillar Logistics, IBM • Forwarder Based – Very independent middlemen with forwarder roles. – Non-asset owners that provide a wide range of logistics services. – Examples: AEI Types of 3PL Providers • Information Based – Significant growth and development in this category of Internet-based, business-to-business, electronic markets for transportation and logistics service Levels of Outsourcing • Transactional...
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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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...CASE STUDY FOR FINANCIAL MANAGEMENT CASE 4: The Battle for Value, 2004: FedEx Corp. vs. United Parcel Service, Inc. VALUE CREATION AND ECONOMIC PROFIT I. OUTLOOK OF CASE 4 Case 4 mentions about the competition between two leading companies in package- delivery market. FedEx which is the largest foreign presence in China, with 11 weekly flights, serving 220 Chinese cities, so the company’s volumes in China had grown by more than 50% between 2003 and 2004. UPS which is the world’s largest package-delivery company and dominant parcel carrier in US, serving 200 cities in 2003. FedEx had virtually invented customer logistical management, and was widely perceived as innovative. Historically, UPS had reputation for being big, bureaucratic and an industry follower. Two companies have their own market, an individual characteristics, and inconclusive. Thus, not only based on the development and operation of the two companies, the analysis also relied on the special purpose financial ratios ( especially Economic Value Added (EVA), an effective measure and rapid for firm within an industry) to find which company has more competitive advantage. II. INTRODUCTION 1. FedEx corporation: [pic] FedEx, formally known as Federal Express, started delivering packages and freight on April 17, 1973. The company was...
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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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...CONTENTS I. Introduction……………………………………………………………………………….2 II. Company Overview……………………………………………………………………..3 Company Background……………………………………………………………...3 Services Offered……………………………………………………………………..4 SWOT Analysis……………………………………………………………………...5 III. Environmental Analysis………………………………………………………...……13 PESTEL Analysis…………………………………………………………………..13 Competition 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...
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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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...Chapter 1: Case Study Using Information Technologies At Federal Express Tyrone K. Phillips Wayland Baptist University Fall 2013 MISM 5306 VC03 Abstract Technology alone is enough to ensure high quality customer service because customer service is the provision of service to customers before, during and after a purchase is made. With technology customers are able to receive fast and convenient service by using the internet, cell phones, computers etc. According to Turban et al. (2002), “Customers service is a series of activities designed to enhance the level of customer satisfaction-that is, the feeling that a product or service has met the customer expectation.” Customer service can make or break a company therefore it is important in order for the organizations to make a profit and be successful. If an organization has good customer service it will build a positive reputation which results in increase sales and productivity. If a company has bad customer service it can ruin the organizations reputation and hurt its sales and productivity. Along with technology, employees must adjust and satisfy the needs of customers in order for the organization to have high quality customer service as well. Technology can make errors and shut down at times therefore employees must adjust and give good service in order to keep customers satisfied. Federal Express has saved $79.16 million per year by customers using their web site (information technologies) to track packages,...
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...David Faskas, Julius Cano, Dan Dragomir, and Tisha Ray FINC 4369 Dr. Jonathan Du February 7, 2011 Analysis of FedEx and United Parcel Service The domestic United States market for package-delivery is a $45-billion dollar market. The air express market is a $25-billion dollar segment of this market. The package delivery industry is very large and highly competitive. Two of the top competitors, FedEx Corporation and United Parcel Service have been racing to gain a larger portion of this multi-billion dollar market for years. Recently with a landmark air-transportation agreement being reached in China, the market for international delivery has boomed. Analysts expect China to become the world’s largest economy within the next few decades. The air-cargo market in China has been growing at a rate of 30 percent per year and is expected to increase for at least 5 years at this rate. With such an important growing market opening to international companies, the opportunity is great. Many risks may also be present with this new venture, but the reward may be great for the company that can take hold of this market share first. Through this analysis I will analyze the goals of each firm, how each firm has achieved or strived to achieve these goals, and how each company has dealt with threats from competitors. FedEx has stated in their mission statement that they have the goal of “[producing] superior returns for shareowners by providing high value-added supply chain, transportation...
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