Federal Express's Value Creation Frontier

While Frontier and Delta are both popular choices of airlines for Americans, Delta has become more of a household name because of their friendlier service, more comfortable cabins, and their limited extras fees. Frontier airline still is a worthy competitor by being cheaper, but they also have many added on fees for things that are free with Delta. Overall, Delta knows how to take better care of their customers and make sure everyone is satisfied.

The value chain shows the overall operations and activities that makes Southwest profitable. Of course they try to watch cost control by finding ways to save on fuel and oil cost. They offer their customers quick turnaround times, which a lot of consumers do like as well as purchasing their tickets online that offer low airfare and bags fly free. They also offer low-cost operations which includes point to point structure strategy. But what also brings the value chain together is that they find that their employees are a key asset to the company. All these activities are particular for keeping Southwest at a competitive advantage.

By capitalizing on this strategy, FedEx was able to boost its average delivery volume in 1976 to 20,726 packages per day via its three services, Priority-One, Standard Air, and Courier Pack, compared with an average of 10,521 delivered daily the prior year. Clearly the company’s calculated use of strategically-located hubs, nighttime flight routes, and limited package size allowed the company to carve out a niche by reliably delivering packages on an immediate, overnight basis.

FedEx’s new product Courier Pak makes sense because of its’ high profit margin and potential to generate new volume. Out of the 3 services that Fed Ex provides, CP yields the highest profit margin at 66% while Priority-One is at 55% and SAS is only at 27%. In addition to this, the company believes that it will be able to boost up sale of CP from 1300 to 6000 packages per day. This shows that CP is the most profitable and huge potential for growth.

American Express is one of the main organizations with a solid, worldwide nearness over the whole installments chain. They are the world 's biggest card backer, with premium system for high-spending card individuals. They handle a great many exchanges every day, and have accomplices that give business-building administrations to an overall trader base. With them having this level scale crosswise over installments gives them different chances to develop their business and drive advancement in the commercial center. It 's additionally a portal to a more extensive exhibit of administrations that further separate American Express. ("Our Company," n.d.)

Grand strategies, often called master or business strategies, provided basic direction for strategic actions. There are many grand strategies that Southwest Airline can chose from when considering which strategies match with their company’s strength, weaknesses, opportunities and threats.

If all companies provide similar delivery services, then prices would be lower and hence revenues will be lower too. If Federal Express creates and sells unique products to the market, then there would be minimum supply of that product into the market and hence the company can increase its profitability. Capacity control can manage business rivalry and increase profitability in the small package express delivery industry by not allowing excess supply of a product into the market. Over time, Federal Express can attract more customers because they have designed products with the most innovative features that the customers desire most hence achieve a sustained competitive advantage over its rivals. Federal Express can use product differentiation and capacity control to improve its business model and offer products with superior features. This can help the company sell its products to new markets, developing a niche, reap profits and maintain an edge over its rivals. Based on this case study, both product and process innovation at Federal Express can increase pricing options for the company and create more value by reducing production costs and this will make the company to continue to maintain above-average profitability (Mulcaster, 2009).

Why is it that when organizations announce upcoming changes to their employees they are rarely excited about it? You do not see them jovially discussing what is going to happen next, and/or how these changes are going to make their organization better. No, none of this is happening. Most of them are worried and wondering how these changes will affect them, and what their roles are going to be. This mindset makes organizational change difficult. Society in general just does not like change, nor are they comfortable with it.

FedEx has not fared as well as UPS in financial performances. FedEx¡¦s total revenue has grown 60% from 1996 to 1999 while their net income has doubled in the same period. FedEx¡¦s acquisition of RPS will challenge UPS for the ground delivery business and affect the sustainability of UPS¡¦s advantage in the ground deliver business. FedEx has been competing well in the higher-end, high-service segment of the package delivery market. Although, digitations of documents and emergence of electronic signatures is threatening the express business which FedEx has the advantage over UPS.

Low-cost carriers pose a serious threat to traditional "full service" airlines, since the high cost structure of full-service carriers prevents them from competing

FedEx has two major customers who consist of businesses and individual customers. These business customers have accounts with FedEx to arrive at their location to pick up packages daily or weekly. Two-thirds of FedEx’s business comes from these customers so FedEx curves their operations to satisfy this clientele. Since FedEx’s competition is trying to acquire some of this clientele they have begun to operate and market to this clientele more effectively. Individual customers are also in FedEx’s internal environment. These customers represent one-third of their business. With increased competition from competitors FedEx has marketed to this market substantially. They have created boxes that are prepaid for shipment as long as the contents fit into the box. This has effectively increased business amongst individual customers for FedEx.

Advantages: Makes it easier to pick out or identify the weakest areas to improve on for the supplier. Heartland may also need to take into account the weakest link. In theory, once the weakest link in a chain breaks, the entire chain is broken.

American Express Company (NYSE: AXP), sometimes known as AmEx, is a diversified global financial services company headquartered in New York City. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best known for its credit card, charge card, and traveler's cheque businesses. Amex cards account for approximately 24% of the total dollar volume of credit card transactions in the US, the highest of any card issuer. [1]

Studying FedEx, UPS and their competitive relationship in the decade from mid - 80's to mid - 90's gives a good insight for the companies' and industry's future. The two companies have different strategic goals and are operating in the same industry but in different main markets: FedEx is working on "producing outstanding financial returns" and focuses on the overnight air market while UPS is looking for "earning reasonable profit" and its core business is the two-day ground delivery. However, by 1981, the two companies started to have a strong sense

The Sunway Group established in 1974. It is one of Malaysia’s lending public listed property-construction corporations with 12 businesses across 50 locations worldwide and 13,000 strong employee base.