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Fedex Analysis

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Kim VanDeven

FedEx Corporation

Case Summary:
Federal Express is a delivery service company, founded by Frederick W. Smith in 1973.
While at Yale, he had a vision of an overnight delivery service designed to transport business packages globally. He found investors willing to contribute $90 million dollars, making it the largest company ever funded by a venture capital. Smith turned FedEx into a global shipping power.

Key Service Marketing Issues:
Customers/ Services: FedEx has a strong adherence to its People-Service-Profit philosophy; it provides reliable, competitive, global air-ground transportation of goods and documents that require quick delivery. The key position is to influence the customer’s perception of…show more content…
They received the Malcolm Baldrige National Quality Award in the service category in 1990. They have developed their own quality system to match their customer’s standards.
• Innovation: FedEx maintains about 670 aircrafts and more than 43,000 vehicles using them differently than any other company.
• Technology and Communication: FedEx continues to search for new technology allowing a budget of $1 billion a year for information technology. They have a highly controlled distribution system with constant information about the status of shipments allowing customers to track them. Weakness:
• Cost of Fuel: FedEx is dependent on gasoline to run its business. Their stock is very sensitive to changes in crude oil. If there is a weakness in the stock market we will see the company’s stock drop. When the cost to run your business goes up it hurts the company’s bottom line.
• Slowdown Economy: A slowdown in the market can cause reduced demand of their services. They are feeling the impact in the domestic area of their service at the moment.
• Poor performance of Kinko’s: They have recorded 2% lower revenues and if this keeps up it will impact the company’s financial performance negatively.

Opportunities:
• Expansion Globally: FedEx can continue to grow globally especially in the Asian Markets.
• Expansion of e-commerce: They already have a presence with online shipping but should keep finding Internet companies to
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