Notesale: Turn your study into money

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Contents

Introduction
1
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0 Business reasons behind the success
2
...
2 Brand Reputations and Marketing
2
...
4 Strategic Oversea Expansion
2
...
6 Relationship with Government
2
...
0 Justification of FedEx’s success
3
...
2 VRIN Tools
4
...
1 Globalization
4
...
3 Product Technology
5
...
1 Fiedler’s Contingency Model
6
...
With logistics as a key part of forming a strong strategy formulation FedEx
provided their customers differentiated services thus winning a healthy customer
loyalty with enormous
...

1
...
The determinants of success will differ from business
to business; the most suitable measurements are employed here in order to access the
success of FedEx
...
1 Revenue
FedEx Corporation has shown some success in revenue through 10 fiscal years as it
reported $5
...
1
billion by the end of 2013 (NASDAQ)
...
97 billion
with the excellent earning of $1
...
4 in 2009 fiscal year
...
2 Earning Per Share
DHL

TNT

UPS

FedEx

EPS

$1
...
19

$1
...
46

P/E

15
...
4

21
...
67

NASDAQ data (2013)

As for its attractive earning per share, investors evaluate FedEx as better bet as FedEx
conversely has a price-to-earnings ratio that is significantly discounted for industry
peers as well as a stock price that is nearly 20% less than its five-year average
...


1
...
4

UPS

10

35
...
S
...
5 % of global
GDP and it recorded strong growth in its low-cost international market where sales
increased 4% on a 15% jump in package volume in 2014 first fiscal quarter that
achievement position FedEx to market leader with 47% market share and just only
behind Asia Express giant DHL with 21% share in Asia (Wall Street)
...

In addition to the financial and market measurement, the soft measurement from the
perspective of customers is added in here
...
4 Customer satisfaction
Customer satisfaction is an indication that Fedex understands the needs of the
customers while understanding the customers and being able to satisfy their needs is
crucial to the strength of FedEx
...

An achievement in comparison to market rivalry leading to elevated price
competitiveness, higher customer retention and loyalty, growth customer base
...
Business Reasons behind the success
2
...
g
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By exploring new information system, the company acts in synergy
between logistics units and allows the company to guarantee customers for “next day
delivery or no pay” value that proposition successfully won underserved niche
market
...
2 Brand Reputations and Marketing
Due to its persistence unique business model, the FedEx brand name has gained
worldwide reputation and become synonymous with express package
delivery
...
”(Memphis City Magazine)
...

FedEx sponsors and associate with several sports that share its attributes of speed,
reliability, precision, for example NFL, NBA, FedEx racing etc
...

2
...
FedEx had a wide array of partnership in technology most
important ones include Orbit Commerce, Cisco, AT&T and Memphis university and
achieved several innovative technology solutions based on customer needs including
automated tracking and internet commerce services
...
In
return, it gains first mover competitive advantage in terms of experience and/or
market share
...
4 Strategic Oversea Expansion
FedEx began its global expansion in 1984
...

Oversea expansion creates opportunities to grow revenue and cost advantage in
local market especially in Asia Pacific where FedEx capture 21% of market share and
exploit low cost resources
...
3 million packages per
day
...


2
...
The company’s focus on “delivering certainty” has allowed it to sharpen
on opportunities that give FedEx added strategic capabilities in virtually all
transportation and logistics services
...
The notable acquisition involves the acquisition of Tiger
International with 800-million deal made FedEx to stand at the front in international
cargo market (New York Times) due to its landing rights in 21 countries and its 40
years of experiences
...

2
...
(FedEx Corp)
...
It also lobby for reducing of
corporate’ taxes, it save 37 million tax exemption in 2012
...

2
...
Fedex strives to hire the best people and offers them the best
training and compensation in the industry
...

As a result, Fedex was named as one of the “100 Best Companies to Work for” and
entitle to one of the “World’s Most Admired Corporation” several times
...

The Corporate culture acts as a distinct capability, which in turns built a great
advantage to its major competitors for having an admirable human resource record
and high performance
...
0 Justification of FedEx Corporation’s success
3
...
Value chain analysis (VCA) is a process
where a firm identifies its primary and support activities that add value to its final
product and then analyze these activities to reduce costs or increase differentiation
...

The value chain for FedEx starts with the picking of packages
...
A value is created for customers
by making package pick-ups as accessible as possible
...
The move creates value by
guaranteeing timely delivery
...
Hub is defined as a
central location whereby packages are set out according to their destinations
...
The
packages can be picked and shipped by plane or track
...
Track drivers and pilots are endowed with
the responsibility of delivering packages on time because it will increase the
perceived value of the company
...
Customer service is another primary activity that
the company wants to perfect
...
The move generates great value for
customers since they are in a position to scrutinize the status of their packages any
time for increased sense of security
...

Information system is a support activity for FedEx that allow customers to monitor
their products
...
The
other support activities of the company are human resource and materials
management
...
It can also be referred to as logistics of goods and services
...
Since the prior goal of FedEx is to create premium service, the further
analysis will focus on activities leading to differentiation advantage
...
FedEx also sponsors and associate with several sports that
share its attributes of speed, reliability
...
This is demonstrated as FedEx Corporation was

ranked no
...
S market share with 49%
...
By 2004, expansion had created an unsurpassed worldwide network
delivering to customers in more than two hundred countries and handling about 3
...
FedEx has spent over $1
...
This makes it very costly for
competitors of imitate and support Fedex to gain market power leading to competitive
advantage
...
The basis of which lies in the managing aspects
where Fedex developed and implemented Fedex’s “People-Service-Profit” (PSP)
philosophy
...
For instance, employees received cash prizes ranging between
$100 and $25,000 for offering valuable suggestion for improving business operation
at FedEx
...

Technology development
FedEx Corporation sets the efficiency industry standard and customer service by
using technology advanced innovation offering time-definite, unique services such as
COSMOS system, a computerized package tracking system that monitors every phase
of the delivery cycle at Fedex Express
...
This technology
innovation creates value to customer and support to stay ahead of competitors
...
2 VRIN tools
VRIN tools enable organizations to distinguish their core competences as well as key
resources for competitive advantage
...


Value
FedEx creates a value that is reliable across all customer communications
...
The ideals of
reliability and speed are universal and address the needs of customers irrespective of
the position
...
Moreover,
the company has designed a tool that allows customers to obtain information prior to
shipping regarding charges for the entire shipping process
...

Rarity
Rarity refers to the unique capabilities of FedEx Corporation
...
FedEx maintains customers’ inventory in their own
warehouses
...
The company does so as part of the services that they
offer to their clients
...
It costs up to $80 billion dollars to build one million
square foot warehouse that enables companies to offer order fulfillment services
...

Inimitability
The company has an advanced information system that makes it possible for precise
package tracking to take place
...
Clients are able to track their packages without conducting customer service
because by just logging into the website of the company
...
Other players in the
industry require that clients call customer care and be informed on the progress of
their products
...
Together with a massive fleet of automobiles
and airplanes, they form part of the enormous infrastructure of the company
...
In order to dash off
competition from substitute products such as e-mail, the company concentrates on
express delivery of hardcopy
...


4
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FedEx has
introduced one call program that assigns single customer service agent with the
responsibility of handling issues in the account of customer
...
1 Globalization
World economies are becoming increasingly integrated and companies are sourcing
worldwide
...
The
company has the largest share of the global air cargo market
...
When the company acquired businesses that were
operated by Supaswift Ltd
...
The acquisition
endowed the company with direct access to seven markets to more than 39 facilities
...
2 Supply chain acceleration
The increased globalization of economies cannot allow businesses to wait for several
weeks to source goods and services in various parts of the world
...
The company
has taken the advantage of moving faster towards an effective supply chain that can
help customers to manage inventory in transit
...

4
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The company is technology trailblazer; it was
the first company to exploit the power of Internet
...
The company allows customers to create
personalized unique-bar coded shipping labels
...

Conclusion
FedEx is the biggest corporation in the shipping industry
...
The
company is expanding its growth strategies through globalization and technology
development
...
0 Strategic Leadership
The success of individual careers and the fate of organizations are determined by the
effectiveness of leaders behavior, thus, leadership is considered crucial for success
(Kaiser and Kaplan)
...
Smith transformed FedEx from a loss-making company during its early years
to a $1 bn revenue company in 1983
...
Under the leadership of Smith, FedEx continued to register
significant growth in the next two decades
...
1 Fiedler’s Contingency Model
Fred
...
Fiedler stated that leadership effectiveness is dependent on the interaction
between the leader and the situation
...
The first major factor in using Fiedler's model is to
determine whether Smith' dominant leadership style is task or relationship oriented
...
S
Marine Corps- honest, forward-looking and competent are what demonstrated about
Smith, so he is more of a task oriented leader
...
Fiedler
recommends (and trains people to) change the situation, rather than their leadership
styles
...
He is genial and
understanding towards his employees at FedEx and he in-turn received tremendous
support and confidence from them
...

Smith has created an open, informal work culture where in the talent of employees
was well recognized and rewarded
...
9% would jump”
...
In the FedEx, team leaders are empowered by
giving them the authority and the responsibility to make the changes needed to
improve productivity and customer satisfaction throughout the FedEx system
...
Recommendations
Although FedEx is doing well globally, they need to rethink their present business
strategies because shippers and business worldwide especially in Asia appear to have
shifted the way they move items and goods
...
com)
...
Therefore, FedEx should consider moving into more cost
effective strategy
...

Furthermore, to compliment their service quality in shipping, Fedex can introduce
RFID (radio frequency identification) technology in their package delivery for the
purpose of automatically identifying and tracking tags attached to packages to support
customers tracking their packages in real-time
...

The future sales in domestics market is now threaten by regional shippers which
handle packages for companies ranging from Amazon, Avon products between two
points in one region (e
...
from New York to Boston) faster than national counterparts
through which they are grabbing market share from FedEx and UPS (Wall Street)
...

Although FedEx has been doing well with expanding into the international market,
there is much larger playing field yet left to exploit
...
Since the domestic U
...

Moreover, Fedex to continue to be a figurehead of express shippers in the mindset of
customers, FedEx need to implement localized brand marketing to improve brand
recognition in the Asia (China in particular) and Africa- which best suit with their
domestic customers
...


References
O
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Ferrell, Michael Hartline, Cengage Learning, ( Apr 2010) “ Fedex challenge”
Business & Economics - 768 pages
(http://books
...
com
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weebly
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pdf
R
...
Kaiser and R
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Kaplan, “The Deeper 4 Work of Executive Development:
Outgrowing Sensitivities,” Academy of Management Learning & Education 5(4) (2006):
463–483
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latimes
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fool
...
aspx
FedEx Earnings: Profit Up 6
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wsj
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van
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com/fedex-ranks-number-one-customer-satisfaction-amongexpress-delivery-companies-12th-consecutive-year
http://online
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com/news/articles/SB10001424052702304773104579266682206635994
Fedex at 40, absolutely, positively built on advertising,
http://brandedcontent
...
com/pdf/FedEx-online

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