:SE FedEx Corporation: Structural transformation through e-business By Ali F Farhooinand and Pauline Ngl [FedExl has built superior physical, virtual and p.,,)ple networks not just to prepare for...

Global Corporate Strategy – Fed Ex 1
Global Corporate Strategy – Fed Ex
Global Corporate Strategy – Fed Ex 2
Executive Summary:
In the globalization era, competitive pressures are compelling business organizations to be in
state of constant change. Changes are bound to occur on account of global exchange of
information, knowledge explosion, cross cultural revolution, rising customer expectations and
increasing competitiveness. Strategic management enable an organization to face challenges by
taking resources to restructuring and downsizing, incorporating changes in strategic plans,
availing opportunities and taking safeguards against threats.
In today’s turbulent business environment, corporates should be flexible and responsive.
Global Corporate Strategy – Fed Ex 3
Contents
Executive Summary: ....................................................................................................................... 2
Part 1: .............................................................................................................................................. 4
Global Logistics and express transportation company:............................................................... 4
FedEx: ......................................................................................................................................... 4
Value chain drivers: Supply chain and Information technology: ................................................ 5
Part 2: .............................................................................................................................................. 5
Branding strategies: ..................................................................................................................... 5
One stop customer Service: ......................................................................................................... 8
New residential low cost delivery service: .................................................................................. 8
Part 3: .............................................................................................................................................. 9
Corporate Social Responsibility: ................................................................................................. 9
Conclusion: ................................................................................................................................... 12
References: .................................................................................................................................... 13
Global Corporate Strategy – Fed Ex 4
Part 1:
Global Logistics and express transportation company:
“FedEx has built superior physical, virtual and people networks not just to prepare for change
but to shape change on a global scale…FedEx 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; Annual Report 1999; cited in De Wit and Meyer, 2004, p.647).”
The global logistics company is one of the biggest industries of the world with more than USD
30 billion. The biggest logistics market is in United States which captures about one third of the
global market. There are many global logistics companies which have changed the face of
logistics industry.
The transportation services industry, primarily comprising freight transportation by road, rail, air,
and marine, witnessed stronger growth during 2006–10. In 2010, the global transportation
services industry generated total revenue of $2,321.9 billion, the industry had the compound
annual growth rate (CAGR) of 0.9% for the period spanning 2006–2010. It is predicted that the
global logistics and transportation company will have the consistent growth rate for the predicted
future. The performance of the market is forecast to accelerate, with an anticipated CAGR of
5.1% for the five year period 2010–2015, which is expected to drive the market to a value of
$2,974.2 billion by the end of 2015.
FedEx offers freight and logistics services. An expanding end market is likely to drive the
demand for the company's services.
FedEx:
FedEx is one of the biggest companies that offers overnight courier services, freight services,
logistics solutions, and business support services. FedEx is considered as one of the largest
Global Corporate Strategy – Fed Ex 5
express transportation company in the world which has a strong brand image. The company was
rewarded as eighth best admired company all over the world. Strong brand image besides driving
domestic revenues, facilitates international expansion. However, the company is threatened from
the growing popularity of internet, which could impact the mail volumes, resulting in lower
revenues for the group.
Value chain drivers: Supply chain and Information technology:
FedEx has a very strong focus on its logistics and supply chain management with which the
company has been able to focus on the timely and prompt delivery. The company has its own
fleet of trucks which helped in the picking of packages and its timely delivery to the customers.
The company focused on different aspects which helped in the development of the logistics and
the supply chain of the company, for this FedEx focused on developing the capability of
scanning all their packages at predefined events in their delivery life cycle, from receiving the
package from the customer, to leaving their warehouse of origin, to reaching a transshipment
point or destination warehouse, and finally to delivery. For this the company had a strong focus
on the development of the integrated information system and technology which helped in the
timely delivery of the parcels and well as to have an integrated tracking information which is
related to a customer’s specific package, the company focused on building a system which
integrated information from all their systems dealing with package acceptance, warehousing,
shipment, and delivery. It had a strong focus on developing hand-held devices which was carried
by their drivers to capture real-time delivery information. The capability was enhanced again
when these devices were able to electronically capture the signatures of the receiving party to
provide proof of delivery.
The company strongly focused on developing an integrated information system for its tracking
system which helped in the integrated and promising service by the company.
Part 2:
Branding strategies:
FedEx has a strong brand image. It is amongst the most recognized names in the globe express
delivery services segment. For instance, during 2010, the company was ranked eighth in
Global Corporate Strategy – Fed Ex 6
FORTUNE magazine’s “World’s Most Admired Companies” list. Since 2001, FedEx has been
ranked among the top 20 in the FORTUNE Most Admired Companies list. In addition according
to a recent study conducted by the American Customer Satisfaction Index, FedEx continued to
rank highest in terms of the feedback it received from its customers.
The company operates its four business segments under the FedEx brand name: FedEx Express,
FedEx Ground, FedEx Freight, and FedEx Services. FedEx promotes its brand through print and
broadcast advertising, corporate sponsorships, and special events. In addition, the...